THESE days, when people are going to funerals, they say they’re going out to lunch.
But for some needy families, the expectation that they have to put on a big show and spread is a another burden on the typical costs it takes to bury a person.
Lee Bromfield, CEO of FNB Life, says while people want to give their loved ones a dignified burial, it is important, like any other major event, that you plan and budget to keep spending in check.
“If you’re covered, the amount of money you get determines your limitations but also where you need to be flexible.”
He said while losing a loved one was a tough experience that could have a devastating effect on your physical and emotional well-being, people should make sure they avoided overspending and getting into debt no matter how much the heart wants to.
He shared a few tips on how to avoid overspending on a funeral.
- Do research:
Find out what a standard funeral costs.
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:
Talking to your family about your policy and the type of funeral you want will make sure that there is no confusion on what you decide for the dignified send-off.
- Avoid social pressure:
Be careful and avoid the social pressure to conform and arrange a funeral that is way above your means and budget in an effort to impress neighbours, colleagues, friends and family.
This can lead you to debt and further compromise your family’s financial wellbeing.
- Review your policy:
Always leave a bit of room for inflation and price increases when taking out a policy, and increase the cover amount accordingly, if it’s necessary, when reviewing your policy.
If you really have to borrow money for a funeral due to unforeseen issues that arise, use trusted credit providers that will not charge you far more interest than what is legally allowed.