Don't leave your family in debt when you die
The cost of funerals in South Africa is quite expensive. As a result, when family members die, those left behind are often left with a serious financial burden. Funeral costs can reach tens of thousands of rands leaving the family member responsible for the burial no choice but to take out a loan or pay with a credit card.
Clearly, this isn't an ideal situation, especially for households with lower income levels. This is why it's important to have funeral policies in place. Here's what you need to prepare.
Take these steps to ensure that you don’t lose your dignity to funeral debt
It’s not always easy to decide who to include in your circle of loved ones. But when someone dies, you want to make sure that you are financial stable enough to provide for them. So, make a list of all the people who’s funeral you would have to pay for if they died.
1.Find affordable life insurance and funeral cover
Shop around when looking for life insurance and funeral cover. Don’t accept the first quote. Make sure that you take funeral cover that is not underwritten by medical questions. You want to minimise the chance of the insurer not paying for the funeral.
2.Speak you your family and start a family funeral fund
Once you have you cover in place, play open cards with your family. Let them know what level of cover you have in place and suggest starting a family funeral fund. Each member of the family earning a stable income, should contribute to this fund on a monthly basis. Contributions should be in line with what that family member can afford. If the family member dies, their individual contributions can contribute towards the funeral too.
The nice thing about a personal family funeral fund is that when someone dies, it will help alleviate the additional pressure of paying for food and accommodation costs when loved ones come to say their final goodbyes.