We’re all seeking financial wellbeing, not only for ourselves, for now, but also for our loved ones after we’re no longer here. Attaining this sort of financial wellbeing starts with financial literacy.
Funeral insurance, for example, can be tricky to fully understand. Terms like “breadwinner benefit”, “spouse benefit”, and “parent benefit” are just a few examples of benefits you can add to your policy. Understanding what they mean is critically important, as it helps you create a policy that’s best suited to your own unique circumstances.
Let's unpack one example to help you.
Breadwinner benefit
Breadwinners are very important in any family because they bring in the main income through their jobs.
Here’s how the breadwinner benefit works.
After the death of the main insured person on a policy, the policy will become paid-up for the remaining insured persons, depending on the duration of the policy. Take note, the benefit may only be applicable to a policy where the main insured person is also the policyholder and premium payer.
Always ask your insurer to explain the relevant terms and conditions to you, so that you are comfortable that your cover is suitable for your and your family’s needs.
There is a wide range of savings and investment products in the market, and many of these products are tailored to meet the needs of different customers. It’s never one-size-fits-all, so look for the solution that works best for your unique needs.
In a deeply emotional time, the last thing you want is added financial stress. It’s key to educate yourself on products like funeral insurance, so that when that day comes, the money doesn’t get in the way of what matters most – a dignified send-off for the deceased.
Remember, funeral insurance should never be one-size-fits-all. You can add the benefits that make the most sense for your own personal circumstances to ensure that you have the right cover in place.
We have prepared a short video on funeral insurance and some of the other benefits one can add. In the video, we unpack benefits such as the “spouse benefit” and “parent benefit” to help you choose the right cover for you and your family:
AVBOB Mutual Assurance Society is a licensed life insurer and authorised FSP.
Concepts like “short- vs long-term insurance” and “funeral insurance” are not always as straightforward as they seem. Understanding the basics can go a long way to achieving financial wellbeing, and it all starts with financial literacy. The more you know, the better equipped you are to plan and manage your finances.
