Expert advice on the importance of taking out a funeral cover for your child
We know how important it is to have a funeral plan in place for ourselves and our partners and parents, but have you considered the importance of having a plan in place for your children?
According to a Rapid Mortality Surveillance Report by the South African Medical Research Council (SAMRC) and the University of Cape Town (UCT), 15 965 children under the age of 5 died in 2017.
This is an alarming number and shows that although most parents never plan to bury their children, it can happen, and parents need to be prepared.
Pierre Schoeman, the Head of Client Services at African Unity Life spoke to us about how crucial funeral cover for children is.
Schoeman says parents should take out cover for their children from the time of pregnancy.
He says children can be “covered from after 28 weeks of pregnancy should there be a stillborn death before the baby is born.”
But it is crucial for parents to choose their cover carefully and insure with a reputable, trustworthy insurer.
Schoeman says parents should look out for the following:
- Make sure you understand fully all the terms and conditions of the policy.
- Make sure the policy is underwritten by a reputable and registered insurance company.
- Insist on knowing who the insurance company is who is underwriting the policy.
- Contact the insurance company and confirm that they are indeed a registered insurer.
- Insist on receiving a policy document/participation certificate once you have signed up for the policy.
- Insist on knowing how the premium that you are being charged is made up … e.g. what portion is the risk portion and what portion is the commission/admin fees etc.
- If there is a claim you have the option of a service or you can request the benefit to be paid out in cash – if the benefit is paid out in cash you must receive the full benefit amount.
- Make sure you know who the insurer is so that you can contact them directly if you have any questions.
Most policies will cover your child until he or she is 21 years of age, but Schoeman says parents can continue with the policy if the child is not independent yet even after reaching that age.
“Until the child turns 21 years of age or 26 years of age if a full-time student. The parents can however continue to cover the children as extended family members if the child is not in a position to pay for his / her own policy,” says Schoeman.
He adds that “mentally or physically disabled children can be covered until death if they are financially dependent on their parents.”
READ: What you need to know about funeral cover- expert advice
DISCLAIMER: The information contained in this article is of a general nature and intended as a guide only. It is neither to be construed as financial advice nor to be regarded as a definitive analysis of any financial issue. Individuals must not rely on this information to make financial or investment decisions. Before making any decision, we recommend you consult a financial planner or advisor to consider your financial situation, needs and objectives.
Image courtesy of iStock/ Marc Bruxelle