Old couple enjoys a walk on the beach. They know the difference between funeral cover and life insurance, and are able to live out their golden years to the fullest, knowing their family's financial needs are taken care of.

Which is Best: Life Insurance or Funeral Cover?

When it comes to your family’s future, you probably think you’ve got it all covered. After all, you want to make sure that your loved ones have everything they need should anything happen to you. When it comes to financial planning, the question then becomes: should you be considering funeral cover, life insurance or both?

Most people take out funeral cover first as it pays out funds immediately to help take care of the urgent costs of a funeral. Some people, however, believe that life insurance is all they’ll need to protect their family’s finances.

So, what is the difference between life insurance and funeral over? We investigate the specific virtues of each policy, the differences between the two, and why you should consider having both.

Funeral Cover

Funeral cover is insurance that provides funds for the short-term needs of your family. In the event of your death, a lump sum is paid out to your family, which is usually within 48 hours upon sending all relevant documents to your insurer. With these funds, your family can cover all the expenses related to the funeral itself as well as some they’ll need after the funeral. Funeral cover with no waiting period is just one of the many advantages of funeral insurance.

Remember that protecting their future means preparing for the unthinkable. Plan wisely with funeral cover.

Life Insurance

Life cover provides funds that cater to the long-term effects of a death, for example, life immediately after the funeral. The value of a life cover policy is usually three times your annual salary and, in some cases, is paid out as a once-off lump sum. The purpose of this policy is to help settle any outstanding debt (should there be any) and provide financial support for your dependents.

4 Main Differences Between Life Insurance and Funeral Cover

  • A standard life policy and funeral cover will pay-out when you die. Funeral insurance is always seen as the most affordable choice. However, it can be more expensive, for example, if you took the same amount out as your standard life cover.
  • Once the main member passes, funeral cover requires only the relevant documents to approve a valid claim. The death certificate of the deceased is required. A life cover goes through a long claim process where your family needs to complete forms and provide medical reports as well as details of how the death occurred.
  • In some cases, funeral cover can be for smaller amounts. One of the biggest selling points of life cover policies is that they cover bigger amounts.
  • Funeral plans are available for you, your spouse, children, and extended family members all under one policy. A life cover policy, on the other hand, is mostly for one person or a married couple and only pays out to the nominated beneficiaries.

Which One Should You Get?

You should get both. Although they are two very different products designed to do different things, one is not interchangeable for the other. For your family, your death will be one of the most devastating things they will ever endure. The last thing you want them to worry about is the high cost of a funeral. If you’re not sure about which to choose, search online for the best funeral cover quotes.

What many don’t consider is the life after the funeral. If you are the breadwinner in your family, your dependents need to carry on living without your support. They need to pay for things such as home loans, school fees, outstanding debt, electricity and water bills. This is why life insurance is so vital at assisting your family in sustaining a life long-term.

You want to leave behind as much as possible based on the monthly premium you can afford. A life insurance calculator can be a great tool at assisting you in getting an idea of how much you’ll be covered for. This will be based on your gender, age, education level, home loan, dependents, and income.

Your family matters and caring for them is your priority. Making the necessary plans now can save them a lot of stress and suffering in the future. Start today with funeral cover. Get a quote!