3 Tips for taking up funeral cover for your parents


Wanting to take up funeral cover for your parents is commonplace in South Africa but people often make a number of mistakes when choosing a plan. In some cases, such mistakes can lead to pay-out delays and in extreme cases, claims can be denied.

CEO of FNB Life, Lee Bromfield says one of the reasons for the mistakes is that people tend to approach the process of taking up funeral cover for parents as a ‘box-ticking’ exercise. He says this is very risky as people overlook important factors that are critical to their claim being paid-out.

He explains some of the important considerations to keep in mind when starting the process:

1.Do not wait until your parents are near retirement

Sometimes people delay taking up funeral cover for their parents, hoping to only start the process when the parents approach retirement age.

“Waiting until your parents are close to retirement is risky. It will also cost you more money as insurance providers have to consider a number of risk factors in your premiums, including age. If you can afford the premiums, there’s no reason to delay taking up a funeral plan for you parents,” says Bromfield.

2. Be aware of waiting periods

If you are taking up a funeral policy when your parents are close to retirement, a provider might include a waiting period. This varies, depending on a number of things, but people need to be aware of the potential implications.

3. Know what you’re getting

Over the years, funeral cover has evolved towards cash pay-outs as opposed to the standard arrangements of supplying a casket and other small items.

Bromfield says the cash option allows families more flexibility on what they can do with the pay-out. Depending on the cover amount, if families spend wisely, the funds could even cover expenses beyond the funeral.