Blogs

Do You Know the Difference between Funeral and Life Cover?
Nov 29, 2018

With so many different types of life insurance policies available, we are often asked about the difference between funeral insurance and life insurance.

Here is our take on the differences: -

What is Funeral Cover?

Funeral Cover is designed to cover your funeral expenses, whether this is burial or cremation.

How is it different from Life Insurance?

Funeral Cover is often a ‘guaranteed issue’ product. This means that you can obtain cover with minimal or no health questions asked and as such, you are covered immediately. In contrast, life insurance requires you to provide a completed application with details of your medical history and be underwritten by the insurer.

Funeral Cover costs remain the same every year. In some cases, the premiums cease at a certain age (such as at age 85) but the cover continues. The amount of funeral cover you choose also tends to remain constant throughout the years.

What else should I be aware of?

Life insurance covers you fully once the policy commences (irrespective of whether death is caused by accident or illness). With funeral cover, you are immediately covered for death resulting from an accident but for any other causes during the first two years of the policy, you will only receive a full refund of any premiums paid.

Do you need both?

This is a difficult question to answer, simply due to everyone’s varying circumstances and financial status. We recommend speaking to an adviser that can take the time to really listen and understand your situation before giving a concrete recommendation.