Funeral Cover Isn’t Going To Save Your House & Provide For Your Kids!

Share

There are three reasons why taking out a life insurance policy is so important.

1: Because You Are Different

The biggest issue with funeral insurance is that it’s priced to cover everyone regardless of health!

Peter, a 30-year-old guy who puffs twenty a day, loves knocking back a few beers after work, and whose expanding waistline is visible proof of his ongoing love affair with fast foods, pays exactly the same as Paul, also 30 years old, who has never touched a cigarette, is a teetotaler, and is the first to crack open the door at his gym every morning.

But, funeral insurance companies don’t know Peter from Paul, and they’re okay with that as long as they can build some fat into their costs and apply waiting periods before allowing for a claim.

Paul would be better off applying for life insurance instead, where he will be offered a lot more cover at the same monthly premium as what the funeral policy would cost him. Peter, who knows he’s going to have issues qualifying for life insurance, will probably choose funeral insurance.

2: Because You Can Get More

The maximum amount of funeral insurance you can purchase is R100 000. And yes, you can always purchase a few funeral policies from different insurers, but it will get expensive quickly.

Let’s assume for a second you had five funeral cover policies with five different companies with R100K cover attached to each policy.

Would R500k be enough to resolve big debt issues?

Take Nick for example. The brand new VW GTI, sitting in his driveway, was financed for a shade over a million Rand. The bad news is that he’s sitting with this debt for the next 72 months and he has a 35% balloon payment he needs to make at the end of that. Then there’s the house he bought 5 years ago when interest rates were low and life was good. Nick still owes R2 million on the bond.

The problem is, if anything happens to Nick, things are going to go south at a rapid rate of knots.

A R100 000 funeral insurance policy ain’t going to help much when he leaves his wife with R3 million in debt (for his car & the bond).

Nick has two options:

1: Purchase R3 million life insurance to take care of his debt and leave his wife with a paid-off car and home, or

2. Take his chances and be willing to leave his wife with the burden of covering the costs for the monthly car and bond repayments that his salary used to cover.

3: Because You Need More Options

Funeral insurance is important, but it only takes care of your burial.

So what happens if you become permanently disabled or very ill and you can never work another day in your life?

Take Tebogo and Charles. They’re both young, single and shooting the lights out in the IT field. After a late night out on the town, they get T-boned at a green light (for them). Tebogo is left paralyzed as a result, and Charles can’t work for eight months. Neither of them thought twice about buying disability insurance. A monthly income protection policy would have made all the difference in both their lives at this stage.

Or take Fred for example. He was sitting at his desk, and the next thing he knew, he was waking up in hospital after suffering a severe heart attack. He’s now sitting with a stack of unpaid medical bills and is recuperating at home for the next six months. A severe illness policy would have taken care of both these problems.

When you take out a life insurance policy, you have the option of adding additional benefits like:

  1. Disability cover – Payable when you are temporarily or permanently unable to work. 
  2. Critical Illness cover – Payable when you are diagnosed with a critical illness like cancer.
  3. Income protection – Payable when you are unable to earn an income as a result of sickness or disability. 

These types of benefits can’t be added to a Funeral cover plan, which is why a policy like that has its limitations. 

None of us knows what tomorrow will bring. Life insurance is one way to take care of all your tomorrows as well as your family’s.

Need to chat about your life insurance requirements?

Click here and chat to us on WhatsApp now

The Go Insurance Team

Share

You might also like

Funeral Insurance

Elevate Your Life & Funeral Cover with 1Lifestyle Rewards

3 min read

Car Insurance

The Risk of Canceling Your Insurance Cover in Tough Economic Times

3 min read

Other

Check Your Credit Life Policy For Retrenchment Cover

3 min read

Follow us

Terms & Conditions

When you request a quote from GoInsurance we pass your details onto a direct insurer on our partner panel. This is through Crisp Solutions (Pty) Ltd who holds the relationship with the insurers.

Those partners are currently:
– 1Life
– KingPrice

Your Name & Cellphone number are passed over to the insurer via an API (digital handshake). Your details are also stored in our database so we can reach out to you about future deals or interesting content published on our website via SMS. By accepting the terms and conditions you have provided us with consent to market to you via SMS. You’ve also provided consent for the direct insurer to call you with a quote.

Don’t worry, we’ll never spam you or share your details with third parties besides the lead partner we originally matched you with. You’re in control and can unsubscribe at any time (although we hope you’ll stay with us!).

Drop us an email if you have any questions.

The GoInsurance Team

Thank you for requesting a quote!

We’ve partnered up with 1Life and KingPrice to bring you a competitive quote. Please expect a call from the provider relevant to your request shortly.

Thank you for signing up to our blog!

You’ll now receive notifications via email when we publish new content. Don’t worry, we’ll never spam you or share your details with third parties. You’re in control and can unsubscribe at any time (although we hope you’ll stay with us!).