Death isn’t something we like to think about – it brings up all kinds of uncomfortable feelings. And spending money just in case you die, feels like an added insult. But having the right things in place – like a will, life insurance and a funeral policy – can really help your loved ones in the aftermath of your death.
If you are the family breadwinner, the financial consequences of your death could be an impossible burden for your family. When you die, your bank accounts are frozen. And if you are married in a community of property, your spouse’s savings may be frozen too – and that means there is no money left to pay for a funeral.
If you have money and possessions that need to be distributed to various beneficiaries, having a will will speed up the time it takes for your family to get their inheritance. Bearing in mind that more complex estates can take up to two years to wind up, and that’s with a will, imagine how long it could take if you don’t have one.
That’s why a great solution is to invest in a funeral policy because the cash is made available immediately. It works exactly like an insurance policy. You pay a monthly premium and even if you die before you’ve built up enough money, your funeral will be paid for up to a specified amount.
If you have a life insurance policy, this kind of plan might be built into that, so before you invest in either a life or a funeral policy it’s worth finding out. Life and funeral policies are investments, so you should always do a bit of due diligence testing before putting your money into any kind of investment, and insurance policies are no different.
Before you buy any funeral or insurance policy do the following:
- Check with the registrar of life insurance companies to find out if the company you are buying the policy from is reputable.
- Many policies are sold through agents or brokers, but you should still phone the insurance company that the agent or broker represents, to make sure that your policy really has been documented.
- Always read the fine print so that you know exactly what you’re getting for your money. Some policies, for example, don’t cover suicide or accidental death.
- Make sure that the money will become available immediately when you die.
- Keep the document with your will, and make sure your family knows where to find it.
Death is a stressful time when people have to make decisions about funeral decisions amid their grief. You can help them get through this difficult time by taking care of some of those details in advance.
Don’t shy away from the topic – talk to your family about what you would like for your funeral, or write it down with your will. None of us can escape death, but we can make it a little easier for those left behind if we plan well.
