The untimely death of a loved one is one of the biggest hardships that we all inevitably go through at one point or another in our life. For many families, this sadness also is further worsened with additional financial stress.
In February 2020, Sacos introduced the first funeral insurance plan in the country. The plan is designed to pay out a lump sum which covers the cost associated with the funeral service. In a simplified Q&A, we answer some of the more burning questions related to the Sacos Funeral Insurance Plan.
Who can take out a Sacos Funeral Insurance Plan?
Anyone between the ages of 18 years and 65 years can take the Sacos Funeral Insurance Plan.
Does the funeral plan cover only the policyholder?
The funeral plan can provide coverage to you, as the policyholder, and your family. Members of your family that can be included in the plan are your spouse, your children and your parent. It is up to you as the policyholder to decide who you want to include in the plan.
How much can I insure under the funeral plan?
Under the funeral plan, the highest amount you can insure is SCR75,000. You can also select from one of the other three options: SCR15,000, SCR30,000 and SCR45,000.
Does the SCR75,000 cover all the members of your family included in the plan?
Not at all. If you take a SCR75,000 policy, this entire amount will cover your funeral expenses if you, the policyholder, pass away. For any other member of your family on your plan, the policy will pay out separate lump sums to cover their funeral expenses. This is why you pay an additional premium for every additional family member you include to your plan. This same principle applies to the other three options, as well.
Does that mean that the premium is expensive?
The funeral plan is one of the most affordable insurance plans under our portfolio. For example, on a SCR15,000 policy, the additional premium to include your child on your plan is only SCR80. In fact, it is quite affordable that some people may even opt for the yearly payment plan as opposed to the monthly contribution.
Who does the lump sum go to when I the policyholder pass away?
If you as the policyholder pass away, the sum insured can go to a beneficiary of your choosing or directly to the funeral parlour of your choosing. If however, one of the family members under your plan passes away, the lump sum would go to you. You will be asked by a Sacos rep to indicate your preference.
When is the sum insured paid out?
The Sacos Funeral Insurance has a fast payment clause, meaning that within 48 hours of the claim being made, the lump sum will be paid out. However, because there are terms and conditions which apply, you should consult your policy and/or a Sacos rep for more details on how and when to make a claim.
Is there an age limit valid for all persons under the funeral plan?
Indeed, there is an age limit for everyone. For you the policyholder, you have to be no older than 65 years of age, and no younger than 18 years. The same applies to your spouse if they are included in the plan. Your dependent child should be less than 21 and if they are still pursuing tertiary studies on a full-time basis, they have to be less than 25 years of age. Your parents on the other hand will be covered up to the age of 70 years.