Why is funeral insurance important, and what are the benefits?

The Department of Home Affairs has started a process to eliminate widespread ID fraud.
South African President Cyril Ramaphosa delivers the state of the nation address at the City Hall in Cape Town on February 8, 2024.
We’re all seeking financial wellbeing, not only for ourselves, for now, but also for our loved ones after we’re no longer here. Attaining financial wellbeing starts with financial literacy.  
The good news is that simply understanding the basics can go a long way toward helping you achieve financial wellbeing. Basics include understanding that “funeral insurance” could mean the difference between good financial health after you pass on or leaving your loved ones in a difficult financial situation.
Funerals play a very important role in many of the cultures in South Africa. And they can cost a lot of money, especially if you’re not covered with the right insurance.
To prepare a dignified farewell for a loved one is not easy, and the last thing you want is for the emotional part of it to be compounded by a difficult financial situation.
Some funerals are elaborate events that could, in addition to the actual burial or cremation service, include a memorial service that requires things like catering, family cars, tents, chairs and other services. These costs quickly add up if you don’t have a policy pay-out to help cover them.
Although funeral policies are long-term policies, they usually pay out initial benefits within 48 hours to assist the beneficiaries with the immediate financial aspects of the funeral. Quick access to funds can be very useful to the family of the deceased.
Always remember to ask an insurer how long it will take to receive all the benefits of a policy… and remember, funeral insurance is never one-size-fits-all, so look for the solution that works best for your unique needs.
In such a deeply emotional time, the last thing you want is added financial stress. It’s key to educate yourself on products like funeral insurance, so that when that day comes, the money doesn’t get in the way of what matters most – a dignified send-off for the deceased.
For more information on funeral insurance, here is a short video:
AVBOB Mutual Assurance Society is a licensed life insurer and authorised Financial Services Provider. FSP 20656.