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Amazing Reasons Why Young Parents Should Take Out Funeral Cover

Amazing Reasons Why Young Parents Should Take Out Funeral Cover
Becoming a young parent for the first time stirs up a range of emotions, from excitement to anxiety.
Dealing with a little bundle of joy often means that you forget to deal with important paperwork, such as insurance or funeral cover. 

However, you should not neglect taking out funeral cover, especially when you become a parent. Below are some reasons why young parents should take out funeral cover. 

- Your family will be financially prepared

Taking out funeral cover from companies such as AUL (part of African Unity Life) means that in the event of your death, your family will be financially prepared. The funds given to them from your funeral cover policy will help to cover their groceries, utility bills and other daily expenses. 

A young family may have more debts than one with older children and parents, which is why funeral cover can help in times of need and grief. You will need to consider how the loss of your income will affect your partner and your children, especially if your children are starting out at school. Your partner may need time off from  work to grieve or financial help in  managing a household with little income. 

- It covers funeral costs

The average cost of a coffin can range from R700 to R50 000 (convert to your local currency), added on top of that other fees, a funeral can become expensive very quickly. The amount paid out of your funeral cover is ideal for your family to use to cover the various costs involved in  planning and executing a funeral. 

Funeral cover often offers a ‘lump sum’ payment to your family to use for necessary expenses which often will include paying for the funeral. This can help with the grieving process as your family will not have to worry about where to find the funds to plan for a dignified burial or cremation. The remainder of the money can be used for other essentials after the funeral. 

- The payout is quicker

Life insurance payouts may take a while to access due to the legal procedures involved, but with funeral cover, the payout happens within 48 hours of the claim. This allows your family to start planning the funeral as soon as possible,without having to be further burdened with legal jargon and issues. 

Funerals need to be arranged fairly quickly, which means that your family will need money as soon as possible to pay for the expenses. If you have only life insurance, the delay will cause problems and will exacerbate the suffering your family is experiencing. The payout for most funeral covers takes into account the need to start planning a funeral straight away. 

- You can cover your extended family

Funeral cover plans often include direct family members as part of their packages, but with some, you are able to cover your extended family too. These dependent family members will be able to have the peace of mind that upon their death, their family is not burdened with the weight of having to borrow money from others. 

Funeral cover premiums will increase per member, however, so it is important to take this into account when deciding on which family members to include. Some plans also have limited numbers of family members that can be put onto one plan, so be sure that your partner and child are added before you go ahead with adding extended family members. 

- Some plans offer other valuable services

While funeral cover’s most appealing aspect is the fact that your family will not have financial burdens upon your passing, the value-added services some plans offer are perks for many. Services such as grief counselling, legal assistance and organising the funeral details can help alleviate stress during this trying time. 

It is important to find out how much extra these services will cost when signing up for your plan, as you still need your funeral cover to be an affordable monthly expense. Having the extra service of grief counselling should be a serious consideration for young parents as their children may need help in understanding the death of their parent. 

- Ongoing financial support

With some funeral cover plans, your family will be provided with a monthly stipend for several months after your passing, to pay for essentials and for bills. This is especially helpful if you were the sole breadwinner of the family. 

This is an optional benefit for most plans, so will cost extra to add onto your current one. Your family can use this money to pay for school fees, medical bills, groceries or utility bills. Financial strain during a time of grief is not ideal for a young family and so choosing to have this optional benefit will prove highly advantageous should the worst happen.
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