How to Compare Funeral Insurance
With so many funeral insurance products on the market, it can be difficult to find the right product. Most funeral plans have the same outcome but get to the destination in a very different way. ON this page, we will look at some tips on comparing funeral insurance.
Firstly, you need to know what types of funeral plans are on the market. Although there are many types of products, there are 2 main categories you need to consider. Some policies will pay you cash only, where other polices with offer cash with benefits. When you compare funeral insurance, you need to look at the type of policy.
Secondly, you need to look at the additional benefits. Most funeral plans will pay out when a person dies. It’s important to understand what makes the plan better than any other. Some policies will offer free accidental death cover. This can be a great benefit as it increases the total payout. Some polices might provide free services. When you compare funeral cover, you need to look at the combined value.
Cash Only Funeral Policy:
This type of funeral plan will pay cash only. What this means is the following; the beneficiary will receive a lump sum payment. This payout can then be used to shop around for funeral services. Potential services include flowers, catering, mortuary costs, etc. There is a long list of services you need to consider. Some are obvious, others are not.
The benefit of a cash only policy is you can find the best deals for every service. It does take a little more effort but can be valuable in the end. Most cash only products offer a range of value adding benefits. This can include accidental death cover.
Cash with Benefits Funeral Policy
This type of funeral plan will usually still pay you a cash lump sum. However, you will then have the option to let the provider arrange the memorial for you. You can select all the service you require and they will deduct it straight from the payout. All the money that remains will be paid out to the family.
The benefit of a cash and services plan is you can get everything done under one roof. The provider will know exactly what you need to arrange the service. You will also get many free benefits. For example, with AVBOB clients will receive discounts of up to R4000 if they arrange the funeral. It also helps to take strain of the family members.
Why You Should Compare Funeral Insurance
There are many benefits when you compare funeral insurance. Some policies will give you benefits that are not relevant to the product. In most cases, the benefits are only there to lure the client. We have seen funeral plans that give you airtime every month. This is a marketing gimmick. At the end of the day, the “free” airtime will still be at your expense.
Always make sure that you compare apples with apples. Nowadays, you can buy a funeral plan in the queue at your local super market. Even though it might seem affordable, you need to make sure you understand the product.
For more information on funeral insurance or tips on how to compare funeral insurance, feel free to contact us. We have done all the comparing for you. We have a great range of funeral plans available.