The importance of having a funeral policy
12 Aug 2022
A funeral policy is the last investment we make for a brighter future for our families.
One of our greatest challenges in life is building a legacy for our families. While we work towards making better lives for our children and our families, we underestimate the challenges that can come when we lose a parent or guardian.
In the Constitution of 1994, equal rights to work were included, enabling many more South Africans to build lives for themselves and their families by working hard and investing in their futures. South African women today are working and earning more than ever before. Massive strides have been made, from domestic workers finally being included in the updated minimum wage, to the appointment of the first female South African CEOs of internationally listed companies.
Through the hard work of these women, some of whom are sole breadwinners, more and more of the nation’s children are attending good schools and universities. Many of them are only the first or second in their families to graduate.
The unexpected death of the breadwinner can have devastating financial consequences. The family will need to make funeral arrangements soon after death and, if a funeral policy has not been taken out, that money will have to come from somewhere else. Life insurance policies can take months to pay out and extracting cash from a deceased estate can take even longer.
If you don’t have the R10 000 to R15 000 ready cash for a funeral, you may have to use funds that would have gone towards school fees, rent or credit repayments. Planning the last farewell of a beloved family member is emotionally taxing and can affect your judgment, resulting in poor decision making which is the last thing you want when finances are tight.
Many people think of funeral policies as paying for a funeral in a time of need, but it’s your last investment in your family’s future, says Legal&Tax. The nature of funeral policies and their faster pay-outs mean that your family will not have to sacrifice the legacy that you’ve built, to give you the farewell you deserve. Even if it is the funeral of a dependant, you know that you will be able say goodbye without risking possible debt or missed payments, which can affect your credit score.
A Legal&Tax funeral policy protects you and your family.
The benefits of legal consultations combined with the comfort of a funeral policy
Knowing that what you have built is secure for the future is a comfort. Having some control over that future after you’re gone is priceless. If you ensure that all your documentation is up to date, that your premiums are paid in full and on time and that you have named a beneficiary, you can be reasonably assured that your policy will be paid out on time.
Legal&Tax’s funeral policies have the added benefit of legal advice, so you can consolidate everything you need to, in a legally binding and secure way. Having your affairs in order and keeping them updated is an investment in its own right, not only for your family, but also for you and the time you have while you’re still here.
The pain of people passing is never easy, but it can be made so much worse by incomplete estate planning. If there is no clear direction in a legal will, it can lead to uncertainty or even litigation, further threatening the legacy that you or your partner have tried to build.
If you are working hard to build a prosperous future for your family, that you hope will last for generations, a funeral policy is a small thing that will save you from big disappointments later.
Compare our funeral plans today, to find the right fit for you.
With Legal&Tax you’re not alone
Article sourced from Legal&Tax.
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(This article is provided for informational purposes only and not for the purpose of providing legal advice. For more information on the topic, please contact the author/s or the relevant provider.)