Many individuals use the term ‘life insurance’ as a way to refer to funeral cover and life cover collectively. This can cause a lot of confusion and not knowing the difference between these products can cost money in the long run.
Some of the most common misconceptions about insurance occur in the life insurance industry. Whilst Funeral cover is part of Life insurance, the broader life insurance offering is generally wider and also provides more cover than a typical funeral policy.
From car and home insurance, to life and medical policies, there are literally hundreds of different types of insurance options available to the public. In order to get a clear picture of life insurance, you need to understand the various options available and take the time to discuss them with your financial adviser or insurance consultant.
Figuring out which basic policy meets your requirements can be confusing, so we have constructed a helpful matrix to help you discern the important differences between the two options.
The most important questions you should ask in attempting to understand the difference between life cover and a funeral plan:
By taking the time to understand the differences between these different offering of life cover, you give yourself peace of mind knowing that your family is cared for in the event of your passing.
If you have existing polices and are unsure about what they offer, visit your nearest financial services branch to check, verify and ensure that you have the right cover in place for all short and long-term needs.