Funeral cover is not something that many people enjoy thinking about as it is associated with the heartbreaking reality that their elderly parents will, at some point, no longer be with them. However, if you want to maintain their dignity in death, funeral cover is important to consider.
Getting funeral cover for your parents may seem like a daunting task, when you think of the paperwork and admin involved, but with specialised companies such as AUL providing options, it is more simple than you may think.
What you need to know
If you have been researching funeral cover for your elderly parents, you may have noticed that many insurance providers do not offer funeral cover for those aged 65 to 80. This is because people in that age bracket are considered a much higher risk than those in their 20s or 30s. This means that many insurance providers are hesitant to provide funeral insurance or funeral cover for elderly people.
However, this should not deter you from applying for funeral cover for your parents, as there are certain providers who are willing and able to offer affordable and dignified funeral cover for any stage of your parent’s life.
What is required to apply?
Many banks that offer funeral cover will allow you to have family members on your policy, which means that you are able to have your parents on your funeral cover. This is one of the best routes to take, as it is a secure option which will provide cover for all family members.
To apply for funeral cover from any bank, there are standard requirements that you or your parents must meet:
- You must be a South African citizen or permanent resident with a barcoded ID or smart ID card.
- Main member must be 18 to 64 years of age.
- You must have a valid bank account.
If you or your parents meet these requirements, then you are able to obtain funeral cover. However, if you are planning on taking out a family funeral plan, your parents will not need to provide any documentation to the bank.
Many banks will not ask for medical records or for tests, but some do, so your parents will need to be prepared to comply with these. Often such tests are required to provide accurate cover for their age or situation. If your parent or parents are in ill-health, some providers will be reluctant to help as they will be considered as high-risk.
Consider the benefits and costs
If you are helping your parents apply for funeral cover or if you are considering taking out family funeral cover, it is vital to first consider both the benefits and the costs of the plan.
Some funeral covers offer benefits such as being able to cover 30 people, getting cover of up to R50 000 for your parents (including in-laws) and R30 000 for your children, and the option to provide income for your family for a year should you pass away and so forth.
These benefits are highly helpful if you are supporting elderly parents who can no longer work or who do not have their own funeral plan. But it is important to note that some banks or insurance providers may charge you extra if you want to add more beneficiaries to your bundle that are over and above the amount that is covered.
Pensioner funeral cover
If your parents are of pensioner age, they may be able to opt for pensioner funeral cover. It may be slightly more expensive, and not offer as much as a family funeral plan, such as those offered by AUL or other banks, but it will give them much-needed independence and dignity in their later years. Pensioner funeral cover is applicable to those who are aged 65 to 85.
Often due to the smaller cover, the money that their family will receive from pensioner funeral cover is less, but it will still contribute to any funeral costs that will occur after their passing. Funeral cover premiums are usually calculated according to the age of the policy holder, but this is not the case with every bank or insurance provider, so ensure that you know the fine print.
Get the right advice
Always speak to a professional before considering taking out funeral cover, whether for yourself or for your parents. It is vital to apply with as much information as possible, as this will help to choose the best funeral cover with the best premiums and benefits. Getting funeral cover for your elderly parents does not have to be a time-consuming and difficult task as long as you are prepared ahead of time.