Many people get confused between funeral plans and life insurance, believing them to be the same thing – but they are actually two different products and it’s worthwhile to consider both. We’ve put together a handy list of differences to help you distinguish between the two so you can get the best cover for you and your family;
Can be a standalone product, or you can add other benefits that include cover for critical illness, disability etc.
Provides for your family when you are no longer around to provide an ongoing income.
Covers the policyholder for death. A spouse can also be covered under the same policy.
Pays out to the nominated beneficiary/ies.
Can pay-out in a matter of days if the claim is straightforward and all documentation is received.
Monthly premiums are calculated based on risk profile: age, gender, job, health and lifestyle. A medical exam may be needed.
You can tailor the pay-out amount to suit your family’s lifestyle. Your budget will also determine how much cover you can get.
Cannot replace life cover, but is seen as a valuable ‘add on’ to a life insurance portfolio.
Provides short-term funding for the costs associated with a funeral: transport, catering, casket, tombstone, burial, flowers etc.
You can insure your own funeral and those of your family members on one policy.
Policies usually pay out a lump sum to the beneficiary at the time of a claim.
Funeral policies pay out quickly, usually within 48 hours.
Premiums are based on cover selected and the number of people on the policy. No medical examinations are needed.
Policy pay-outs are capped by the insurer and each one offers various limits, but the cap is usually about R50 000.
By taking the time to understand these two solutions, you can give yourself peace of mind knowing that your family will be well cared for. If you have existing policies and are unsure about what they offer, visit your nearest Standard Bank branch to ensure you have the right cover in place for all your needs.