Avoid overspending on funerals

Lee Bromfield

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, 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. 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.

Do research – it is essential that you do research and find out what a standard funeral costs.

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.

Talk about death – death is usually the last topic that people look forward to at the dinner table. However, talking to your family about your policy and the type of funeral you want will ensure that there is no confusion on what constitutes a dignified send-off.

Therefore, the funeral cover amount paid out should be enough for the entire service.

Avoid societal pressure – be careful not to conform to societal pressure and 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 to 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.

“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,” says Bromfield.



Latest


16 Feb 2021
Transition management services partnership announced

Standard Bank has signed a memorandum of understanding (MoU) with Chicago-headquartered financial services company Northern Trust, to partner on the…

Transition management services partnership announced

Standard Bank has signed a memorandum of understanding (MoU) with Chicago-headquartered financial services company Northern Trust, to partner on the delivery of transition management services across Southern Africa. Under the partnership, Standard Bank’s clients will gain access to Northern Trust’s full suite of transition management services. Transition Management is a…

16 Feb 2021
Tax free wealth creation with property funds

By Liliane Barnard, CEO and Portfolio Manager at Metope Investment Managers, and Aimee Glisson, Director: Operations, Performance & Risk at…

Tax free wealth creation with property funds

By Liliane Barnard, CEO and Portfolio Manager at Metope Investment Managers, and Aimee Glisson, Director: Operations, Performance & Risk at Metope Investment Managers The tax year, along with the deadline for an investor’s maximum R36 000 annual tax-free savings account contribution, comes to an end on the 28 February 2021. Investors…

16 Feb 2021
Why multi-manager investing is popular

Multi-management has been around for over two decades. This investment management approach is popular among many investors because it promises…

Why multi-manager investing is popular

Multi-management has been around for over two decades. This investment management approach is popular among many investors because it promises to deliver smoother, more consistent investment returns, despite cyclical turbulence of financial markets. Given last year’s drastic swings in financial markets and continued uncertainty on how the Covid pandemic will…

16 Feb 2021
Momentum Health Solutions unpacks COVID-19 vaccine roll-out plan

Momentum Health Solutions announced its COVID-19 vaccine roll-out strategy and how it intends to support both its members, as well…

Momentum Health Solutions unpacks COVID-19 vaccine roll-out plan

Momentum Health Solutions announced its COVID-19 vaccine roll-out strategy and how it intends to support both its members, as well as the uncovered population, in being vaccinated. As the COVID-19 virus continues to spread, a third wave is imminent, should the vaccination rollout not commence soon. Speaking at a recent…


Top stories


10 Sep 2020
How too much choice is draining your brain

By: Paul Nixon, head of technical marketing and behavioural finance at Momentum Investments From the words of Francis Scott Key…

How too much choice is draining your brain

By: Paul Nixon, head of technical marketing and behavioural finance at Momentum Investments From the words of Francis Scott Key that dubbed America “The land of the free”, which stuck, to the unforgettable Mel Gibson monologue where an army of painted Scots were willing to trade their lives for the…

13 Apr 2020
Investors should keep a reasonable investment allocation outside of SA

MoneyMarketing asked Roland Gräbe, the head of Tailored Fund Portfolios at Old Mutual Wealth, about offshore investments in the COVID-19…

Investors should keep a reasonable investment allocation outside of SA

MoneyMarketing asked Roland Gräbe, the head of Tailored Fund Portfolios at Old Mutual Wealth, about offshore investments in the COVID-19 environment and what form a global market recovery will take.

13 Apr 2020
SA’s Proposed Covid-19 Disaster Management Tax Relief

The National Treasury recently issued the draft Disaster Management Tax Relief Bill (Bill) for public comment by 15 April. The…

SA’s Proposed Covid-19 Disaster Management Tax Relief

The National Treasury recently issued the draft Disaster Management Tax Relief Bill (Bill) for public comment by 15 April. The draft Bill, together with its explanatory memorandum, provides clarity with regards the tax relief measures President Cyril Ramaphosa announced on 23 March.

10 Apr 2020
When the going gets tough, farmers are on familiar territory

South African farmers are old hands at adapting to uncertain and daunting circumstances, and our local agricultural industry has proved…

When the going gets tough, farmers are on familiar territory

South African farmers are old hands at adapting to uncertain and daunting circumstances, and our local agricultural industry has proved to be most enterprising in acclimatising to challenges as they arise.


Visit the official COVID-19 government website to stay informed: sacoronavirus.co.za