Funeral insurance is big business in South Africa, with millions of policies being sold every year. And rightly so – we all want a dignified send-off one day, plus we don’t want to burden our loved ones with the financial lay-out of paying for a funeral, casket, flowers and everything else associated with a fitting final goodbye.
If a funeral cover policy takes care of all that, why bother with the added expense of life insurance? Old Mutual iWYZE life Insurance explains…
They’re not the same thing: a life insurance policy begins where a funeral policy ends A funeral policy does exactly what the name says – it ensures that you have a dignified funeral. In some cases it also comes with a small lump sum payment to enable your family to pay for groceries and extra accommodation, transportation and such during the time of the funeral.
Truth is, life goes on for those you leave behind. If your family depends on your income for their day-to-day survival, a funeral policy will not help them once the last guests go back home – that’s where it ends.
What is life insurance?
Life insurance ensures long-term financial support for your loved ones if you die or become permanently disabled. This means that they will be able to afford day-to-day life as they know it – money to pay the home loan or rent, buy groceries, afford school fees, clothes and the other expenses that’s part and parcel of life as they know it now.
Life insurance can also be used to pay any outstanding debt you leave behind. The last thing you want is to leave your family with crippling debt, because not only will they lose their primary source of income, but will now have additional payments to make.
How does life insurance work?
You choose the amount of cover you want, usually anything between R150 000 and R3 million, and pay a monthly life insurance premium based on your risk profile. Life insurance companies consider risk factors such as your age, smoking status, occupation, gender, health history and whether or not you practice any dangerous hobbies when determining your individual monthly premium.
In the event of your death or disability this amount will then be paid out to your family according to your wishes. If you do buy life insurance, make sure that you clearly specify who the money should be paid out to. The best idea is to create a legal will.
It’s also important to deal with a life insurance company who have a good reputation and history. You are after all entrusting the wellbeing of your family in their hands after you’re no longer there to make sure it all goes to plan. Make sure you choose a life insurance provider who is well-established and trusted by its customers.
You work hard to provide for your family, and you deserve a dignified goodbye when the day arrives. While a funeral policy will provide this, a reliable life insurance policy will ensure that the love and labour you sacrificed while alive will live on as part of your legacy forever and that those you hold dearest will be able to live the lives you envisioned for them.
Who can you trust to protect the financial future of your loved ones when you’re no longer there to do it yourself? For more than a century, over 6 million customers have placed their trust in the Old Mutual brand to do exactly that.
Offering affordable premiums, 48 hour payouts and a reputation of reliability, you can trust Old Mutual iWYZE Life Insurance to be there for your family when you can no longer be there yourself. Get a quick online quote in less than 60 seconds and ensure a lifetime’s peace of mind today.
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