Death comes to us all. We may not like to think about it much, but the reality is that at one point or another we all lose our loved ones and that we, ourselves, will also pass away. Sometimes we will be afforded the opportunity to plan for this event, and at other times it is both tragic and unexpected.
We can’t predict how or when we are going to die, but we can ensure that the people we leave behind are not overly burdened while bereaved. In this aspect, Funeral Cover has a lot in common with Life Insurance, in that it significantly reduces the financial burden shouldered by those trying to honour the memory of the person who passed away.
The cost of any dignified funeral could place significant financial strain upon you or your family. As we've mentioned in another article (linked below), funerals are incredibly expensive, and many people would struggle to pay for them out of pocket.
Funeral Cover ensures that a lump sum is paid out upon the death of the insured person. This allows the beneficiary – often a spouse or a family member – to cover all necessary costs. Certain insurance providers also offer additional benefits during this trying time, such as assistance with funeral arrangements and even trauma counselling for the family.
Where Funeral Cover differs tremendously from Life Insurance, however, is that the financial relief provided by Funeral Cover is short-term, for smaller, more immediate payments. This could pay for anything from the aforementioned funeral ceremony, burial or cremation, the coffin, flowers or catering. The sum is usually paid out within 48 hours once all the necessary documentation (such as the death certificate, etc) has been provided.
It can be seen as an incredibly useful emergency fund, for when tragedy strikes out of nowhere. Life Insurance, on the other hand, answers the long-term questions.
So, let's take a look at our top tips for choosing the right Funeral Cover for you and your family.