We all want to give our loved ones a dignified send-off, but we can get carried away by spending a lot. Learn how to plan ahead for funerals so you don’t overspend in a grief-stricken frenzy.
Lee Bromfield, CEO of FNB Life says losing a loved one is a traumatic experience that can have a devastating effect on your physical and emotional wellbeing. A big event like a funeral can result in overspending and resorting to debt to finance the shortfall. Here’s how you can avoid spending too much!
- Do research: It is essential to do your research and find out what a standard funeral costs. Start by costing coffins or caskets, flowers, transport, undertakers, food, catering and venue or tent hire to get an idea of how much funeral insurance you will need. The funeral cover amount paid out should be enough for the entire service.
- Talk about death: Death is usually the last topic that people look forward to at the dinner table, but it is critical to talk to your family about your policy and the type of funeral so that there is no confusion on what constitutes a dignified send-off.
- Avoid societal pressure: Be careful not to arrange a funeral that is way above your means and budget in an effort to impress neighbours, colleagues, friends and family. This can potentially lead you into debt and further compromise your family’s financial wellbeing.
- Review your policy – Always leave a bit of room for inflationary increases when taking out a policy, and increase the cover amount accordingly, if necessary, when reviewing your policy. Failure to review your policy and cover amount can lead to under insurance, where the sum insured can no longer afford you the type of funeral you want.
Advisory: If you really have to borrow money for a funeral due to unforeseen circumstances, use trusted credit providers that will not charge you far more on interest than what is legally acceptable.
Source: FNB. Image: Pixabay