The peace of mind that comes with knowing that you and your loved ones are protected financially by having a funeral policy is one of the ways to do this, but is it enough protection?

10.5 million policies and counting

Having a safety net in the form of a funeral policy is something many South African's are aware of. With 10.5 million policies in-force, it has proven to be one of the ways to help families deal with the expenses that come with burying a loved one. Not only are funeral covers affordable, but it also comes with a quick turnaround time in claim payments to help loved ones carry out a dignified funeral. However, it may not be enough for people who are looking to create a long-term financial solution that can be beneficial to their loved ones long after they have passed on.

Thinking beyond funeral cover

The pandemic came, we all saw it, and it put a spanner in the works. It revealed the financial gaps and unpreparedness many South African’s face amidst loved ones dying. Being faced with the reality of losing a loved one and having to take on the financial responsibility that comes with it, is enough to send many a budget into the red.

The financial strain of 54% of people not being able to make it to the end of the month with finances available to take care of family members resulted in many South African's feeling financially stressed. The death of a loved one or a breadwinner can be the final blow. While funeral cover may be a beneficial solution to dealing with the costs of burying a loved one, it is vital to keep the financial future in mind.

Thinking beyond the day of the funeral

No one wants to imagine a future where they are no longer around to love and protect the people that matter to them. The truth is life is unpredictable, and no one knows what the future holds. But being able to create a financial safety net that supports your loved ones long after you gone could mean having more than a funeral cover in place.

Having life cover is designed to cover longer-term expenses and is typically a larger amount. It is designed to provide for your loved ones once you are gone, taking them beyond the day of the funeral day when it comes to handling financial responsibilities - especially when you have dependents.

If you have dependents who will have needs in the long term, funeral cover is unlikely to be enough. It will ensure that your family don’t go into debt to give you a funeral, but it won’t help them pay off the house, send the kids to school, or financially support them.

The easiest way to think about it is this; if your passing would have a financial implication on your loved ones and/or make it difficult for them to maintain the lifestyle that they have now, funeral cover is not sufficient.

Finding the right fit for you

There are insurers who offer a range of options to give you peace of mind knowing that your dependents will be financially protected. MiWayLife offers a life insurance policy with a built-in funeral cover under one premium for *R149 to help you take care of what matters the most.