The last thing you want is to leave your loved ones with the financial burden of a funeral. And with so many affordable options available, you don't need to.

What is a funeral plan and how does it work?

A funeral plan is a policy that pays out a lump sum when a person passes away. Unlike life insurance, this money is paid out quickly so that the family can use it to cover expenses such as funeral costs.

You can buy funeral cover from a financial services company such as Old Mutual. You choose who you want to cover, for the amount you require and pay a premium every month.

Why is it important to have funeral cover? Read on, to find out.

1. Cover the costs of a funeral so that your family don't have to

By having funeral cover your family will have the funds on hand to cover the expenses associated with a funeral. In addition, the premium is affordable and the payout is fast. Once all requirements are met (we have the documents we need) we aim to pay valid claims within 48 hours.

How much does a funeral cost in South Africa?

Funeral costs range between R20 000 to R100 000 (or more) depending on your culture and religion. The cost of a funeral policy depends on who you want to cover. You can get a quote here. Our quote tool is linked to our Easiplus funeral product. To view all our funeral products and their benefits, please visit our product page. 

The maximum payout for an Old Mutual funeral policy is R100 000. The cover amount for children is subject to legislative limits.*

2. You can cover your direct and extended family

You can take out a funeral plan for a number of family members. You can take out funeral cover for your direct family - you, your partner and your children. You can also take out cover for your extended family: your siblings, parents and parents-in-law, aunts, uncles, nephews, nieces and even grandparents. Having funeral cover in place for your family members can give you, and them, peace of mind.

Can you have more than one funeral plan?

You can. You can have one funeral plan for you and your direct family and another one for other people you would like to cover, such as your parents or your grandparents. Old Mutual offers various options depending on who you want to cover. Find out more here.

3. Fast payouts

Life insurance policies take time to pay out, up to a few months in some cases. Funeral policies pay out much faster than life insurance policies. They'll go towards paying immediate funeral expenses while the estate is being wound up, so your family can avoid carrying large debt from a funeral. Old Mutual aims to pay valid claims within 48 hours (once all the necessary documents have been submitted).

What do funeral plans cover?

A funeral plan will pay out a sum of money. That money can be used to cover funeral expenses such as the coffin, a cremation, a church service, a tombstone and catering.

Is there a waiting period?

There is no waiting period for accidental death. There is, however, a six month waiting period for non-accidental death cover. This means cover will not be paid out in the first six months if the death is due to natural causes or suicide.

Which funeral cover is best for me?

To get advice about funeral plans and life cover specifically tailored for you, speak directly to one of our financial advisers. You can also view our funeral products and their benefits here.

Want to learn more about funeral insurance and how it differs from life insurance? Read our article about the about the difference between life insurance and funeral insurance here.

If you'd like a funeral plan from Old Mutual, please share your details with us on this link - it's data free so it won't cost you a thing - and we'll call you right back.

*Legislative age-related limits apply at claim stage.