Consumers who do not plan ahead for funerals could find themselves overspending in a last minute effort to give their loved ones a dignified send off.
Lee Bromfield, FNB Life Chief Executive Officer says losing a loved one is a traumatic experience that can have a devastating effect on your physical and emotional wellbeing. Therefore, managing expenses for a big event like a funeral during this difficult time often proves to be challenging for many people. They end up overspending and resorting to debt to finance the shortfall.
“Like any other major event, you need a plan and budget in order to keep spending in check when arranging a funeral. Often, the cover amount will determine your flexibility as well as limitations. As a result, you should always consider the type of funeral you want when deciding on the policy cover amount,” he adds.
Bromfield shares a few tips on how consumers can avoid overspending on a funeral.
As a starting point get costs for coffins or caskets, flowers, transport, undertaker, food, catering and venue or tent hire. This will give you a basic idea of what you will be able to afford depending on how much you are insured for.
Therefore, the funeral cover amount paid out should be enough for the entire service.
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.
“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,” concludes Bromfield.