One Point Administration and Systems (Pty) Ltd.

Funeral Cover

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SOUTH AFRICA’S MIDDLE-INCOME EARNERS OFTEN OVERLOOK THE NEED TO TAKE UP FUNERAL INSURANCE AND INSTEAD CHOOSE TO ONLY TAKE COMPREHENSIVE LIFE COVER,

EXPECTING IT TO SETTLE THE COST OF THEIR FUNERAL. IT IS ONLY UNTIL TRAGIC CIRCUMSTANCES ARE ENCOUNTERED,

THAT THE PENNY ABOUT HOW USEFUL IT IS TO HAVE SUCH COVER, DROPS.

ANOTHER MISCONCEPTION IS THAT ONCE YOU HAVE LIFE COVER, FUNERAL COSTS ARE AUTOMATICALLY TAKEN CARE OF BUT THIS IS NOT ALWAYS THE CASE – LIFE COVER HAS STRICTER REQUIREMENTS WHICH NEED TO BE FULLY SATISFIED BEFORE PAYING OUT.

IT IS IMPORTANT TO UNDERSTAND THAT TAKING UP A FUNERAL COVER IS SIMPLY A PRECAUTION, JUST LIKE YOUR CAR OR HOUSEHOLD INSURANCE.

MORE IMPORTANTLY, IT HAS VERY LITTLE TO DO WITH ONE’S AGE.

THE NOTION THAT ONLY OLDER CITIZENS SHOULD HAVE FUNERAL INSURANCE IS HIGHLY INACCURATE BECAUSE EVEN THOUGH SOUTH AFRICA’S MORTALITY RATE HAS BEEN DECLINING OVER THE YEARS,

WE STILL LOSE A LOT OF PREDOMINANTLY YOUNG AND MIDDLE-CLASS CITIZENS DUE TO MANY FACTORS, INCLUDING ROAD ACCIDENTS.

IN 2014 STATS SA REPORTED THAT THE PERCENTAGE OF DEATHS DUE TO INJURIES FOR MEN WAS ABOVE 60% IN THE 2014 AGE GROUPS.

THE PERCENTAGE OF DEATH DUE TO INJURIES AMONG WOMEN WAS AT 28%.

THERE IS A DOMINANT TREND IN THE MARKET THAT MIDDLE-INCOME EARNERS FREQUENTLY TAKE UP FUNERAL COVER FOR THEIR PARENTS OR OTHER MEMBERS OF THE FAMILY, EXCLUDING THEM SELVES.

HOWEVER, THERE IS IN EXISTENCE MORE VALUE AND BETTER COST SAVING TAKING UP A POLICY THAT COVERS THE WHOLE FAMILY.

WHETHER YOU ARE YOUNG OR OLD, IT IS BEST NOT TO LEAVE ANYTHING TO CHANCE IF YOU ARE INDEED IN THE POSITION TO ALLEVIATE THE BURDEN OF POSSIBLE FUNERAL COSTS ON YOUR FAMILY.

FUNERALS CAN BE QUITE EXPENSIVE AND NOT MANY PEOPLE HAVE READILY AVAILABLE FUNDS TO COVER THE UNEXPECTED COSTS.

THEREFORE, FUNERAL COVER SHOULD BE ONE OF THE BASIC CONSIDERATIONS FOR ANY INCOME EARNER AND NOT AN AFTERTHOUGHT.