South African Seniors Funeral Insurance
Funerals are something that we generally try not to think about, and in some cases, this can cause us to put off making important financial plans. This often leads to elderly parents not having any funeral cover, which can put great stress on their children when it comes time to pay for their funeral.
We all want to say goodbye to our parents in the most special way. By planning ahead we guarantee that, without added stresses. That’s why having funeral insurance is so important. Unfortunately, though, the older our parents get the harder it is to find proper funeral insurance that is affordable.
We have tried to source some of the best companies who offer affordable funeral insurance for seniors over a certain age.
What is Funeral Cover for Parents?
Funeral Cover for your parents would include an insurance which, in the event of death, will cover the costs of the funeral. There are many different types of funerals, some people choose to have large ceremonies while others prefer small, short gatherings to honour the life of the deceased.
Sometimes people choose not to have a funeral at all. Depending on what you and your parent decide, you can determine what sort of cover is required.
A funeral is a ceremony connected to the burial or cremation of the body. For a funeral, you will incur burial/cremation and ceremony costs. The cost of funeral ceremonies differs depending on what you need in terms of catering, decor, etc.
If your parents want to be buried, you need to be able to buy a casket and burial site, as well as undertaker costs. You don’t necessarily need a large ceremony for this and so would not have to pay for those costs.
A cremation is the burning of a body. Your parents can be cremated and then have their ashes stored, buried or scattered.
You would need to discuss this with your parents, to see what they would like you to do when they do pass away. Once you have this information, it will be easier to decide how much cover they need in the funeral plan.
What to Consider and What to Avoid When Looking at Funeral Cover for Senior Parents
Things to consider:
- The entry age of the policy, if your parents are older than the entry age you won’t be able to cover them with that specific policy.
- The type of funeral your parent wants, this would consider things like religious and cultural preferences, as well as personal partiality.
- How much cover you need.
- The premium amount that you or your parents can afford.
- The waiting period for the plan. Most will have a 6 month – 1 year waiting period, and so if the insured had to pass away in that period, they would not be covered.
- The benefits. Some plans are cashback plans, allowing you to have the money in your hand to pay for funeral costs; others pay the service-providers themselves which may limit your choices.
Things to avoid:
- Neglecting to do your research.Try to find different quotes so you can make an informed decision.
- Waiting too late.The earlier your parents are covered, the easier and more affordable it will be.
- Taking a policy from a non-reputable company. Make sure your insurance comes from a trusted company.
Finding Funeral Insurance for Seniors
Your parents’ age will greatly affect the ease in which you will be able to find funeral cover for them. As they age, their premiums escalate and the cover available to them becomes less.
Seniors Over 50:
For seniors between the ages of 50 and 65, there are a fair amount of insurance companies who can offer a good funeral plan. If your parents are not yet 65, they will be able to get their own policy. You can still take out a policy for yourself and add your parents, this will bring down premium prices.
Seniors Over 70:
Once your parents reach the age of 65, it becomes harder to find them a funeral plan. Their premiums will be quite high, and most companies only have the option to add your parents to your own plan.
With premiums being high, you may not be able to get the kind of cover that your parents need. In this case, it would be beneficial if there are many children who could each take out smaller cover policies on the parent. This would allow for affordable premiums for each child, while still paying out enough for a decent funeral.
Seniors Over 80:
While finding a funeral policy for parents between the ages of 65 and 75 is difficult, finding a policy for a parent over the age of 75 becomes near impossible. However, there are certain companies who do cater specifically for seniors over 80, but these are few and far between.
There are options where you can pay a lump sum of money, which you could then claim back from the company when your parent passes away.
South African Seniors Funeral Insurance Reviews
Sanlam offers a Family Funeral Plan iCover, which allows you to cover yourself, your spouse & children, as well as your parent’s and your spouse’s parents. This covers seniors up to the age of 84.
Old Mutual also has a Family Funeral Plan, which you can take out for yourself, and add your elderly parents. The main holder of this plan must be younger than 65, and you can add your parents as long as they are not yet 85 years old.
AVBOB have two types of cover, one which specifies pensioners who live in retirement villages, and one for those who don’t. The cover can be paid with monthly premiums or in one lump sum.
The first is for anyone over the age of 60 living in a retirement village. They can take out this cover from their 60th birthday. This cover though has no maximum age so it can be taken out no matter how old they are when first taking out the policy.
The second is for pensioners who do not live in a retirement village. This cover is available from the year they turn 65 and must be taken out before the senior turns 85.
With Liberty you are able to get a funeral plan for your parents, insuring them alone but in your name as long as they are under 75 years of age. If they are older than 75, you will need to take a funeral plan for yourself and add your parent underneath that plan. The family plan must be taken out before your parent turns 85.
Hollard allows you to take funeral cover for yourself until you are 75 years old. You can take out a family plan as well, but you cannot add anyone over the age of 75.
It would seem that the easiest option would be to take out a family funeral plan, if this is a plausible solution for your family, as this would bring down premiums for all family members.
Remember to research before you pick a policy, and to get as many quotes as possible. When you lose a loved one you are bound to be in an emotional state and having the correct policy will mean that funeral arrangements will be made without adding more stress to you.
It is always best to plan ahead, especially with funeral plans. The earlier you can take out a policy, the less stress you will have once you need it. If your parents have not yet planned for things like this, have a discussion with them as soon as possible.