Life vs funeral insurance cover
One of the most common insurance conundrums is choosing: Life vs funeral insurance cover.
The trick here is to understand your family’s financial needs.
If you have young children who will need the finances to study further, or if you have lots of debt. Then you may want to consider taking out life insurance. But if you have no dependants and you just do not want to saddle your family with your funeral costs. Then funeral cover is wise.
To further help you make your choice, here are the key things to remember about both funeral and life insurance:
This is known as specified insurance as it caters to a specific event, a funeral. This is usually a lump sum pay-out to beneficiaries of your choice. That covers funeral associated costs – the burial, the undertaker fees, the legal fees, the flowers, and the tombstone.
This cover kicks in to provide your beneficiaries with an income after your death. This too is a lump sum pay-out that assures that the financial needs of your family are taken care of when you no longer can. It is typically used to cover things like tertiary studies, debt pay-offs and any legal costs, or it may be invested.
While these insurance products may differ in structure and purpose. They have one common thread and that is to financially cater for your loved ones once you have passed on. Gift yourself with the peace of mind in knowing that your family’s financial needs will be looked after when you no longer can.
Until next time.
The MoneyShop Team
This article has been prepared for information purposes only and it does not constitute legal, financial, or medical advice. The publication, journalist, and companies or individuals providing commentary cannot be held liable in any way. Readers are advised to seek legal, financial, or medical advice where appropriate.