A lot of people doesn't realize this but it is imperative to have funeral cover. What will happen when something unexpected happens and you leave your family with a huge expense to pay such as funeral cover?

With the festive season on our doorsteps now may be a very good time to reconsider your current funeral policy - if you have one. Statistics show that there is a sharp increase in deaths caused by violent crimes and road accidents at this time of year. In the absence of adequate funeral cover you could leave your family and loved ones with a huge financial burden in the event of death - not only during the festive season but at any time.

The average cost of a funeral is between R 8000 and R10 000 which can present your family with a huge financial burden if you have not done the right planning. A funeral policy should offer affordable premiums, prompt payout and sufficient cover to ease the financial burden by covering all the costs associated with the funeral. Unfortunately people often make the mistake of underestimating the costs of a funeral and their policies provide inadequate funding to cover the funeral costs. When purchasing a funeral policy first decide on whether you want to be cremated or buried and calculate the cover you would require to cover these costs, taking inflation into consideration.

Traditional funeral ceremonies can cost as much as R20 000 as these South African funerals include costs of cleansing and other rituals as well as beasts for slaughter. The family of the deceased are usually responsible for providing transport for the mourners and this can add up to a substantial cost. Even when the economic climate is healthy this can represent a huge financial burden on those left behind.

Monies that you save to cover funeral costs will not be accessible immediately after your death as the banks will freeze all accounts until your estate has been wound up. Funeral directors will require cash upfront and the best solution is to purchase a family funeral policy that will pay out immediately on the death of a family member. The difference between a family funeral policy and an individual funeral policy is that the individual funeral policy only pays out when the policyholder dies. A family funeral policy pays out when any member of the immediate family of the policyholder or the policyholder dies.

When calculating the amount of cover you would require it is recommended that you contact your local funeral companies and request them to send you a price list. In addition to the costs you can determine using these price lists add on the additional expenses of hiring a priest, programs for the funeral event, advertisements in newspapers, hiring a hearse and the additional costs of providing guests with suitable accommodation. Taking the time to get a good idea of what the actual costs of a funeral are will ensure that you purchase a funeral policy that adequately covers the financial needs of your family at the time of your death.