04 Jul Funeral Insurance Kenya – Get Funeral Expenses Covered & Save Money
Why Smart Kenyans Buy Funeral insurance
Planning for a funeral is a painful process. The emotions, the disagreements, and the pain of losing a loved one are usually just a part of the stresses that a bereaved family goes through.
Finances usually compound the pain. For a long time, many Kenyans, especially those from counties far from the city have usually come together in welfare associations that among other things, usually raise funds to meet funeral expenses.
Many of these welfare associations are having a harder time as more people (especially the second and subsequent generations born in urban areas) identify less with their ancestral homes. The weakening of social nets in our modernizing society means that the nuclear family will become increasingly strained when it comes to planning for funerals.
Here are some reasons why smart people are turning to funeral insurance to lift the heavy burden of planning for funerals.
Funeral Insurance is inexpensive
Smart people know the advantage of insurance. Buying an insurance policy means that you are paying a very small sum so that you have a backup plan in the event your insured risk occurs. Funeral insurance is one of the cheapest policies out here, and its also one of those you never quite know when you will need it.
The premiums for covering your family using this policy can be as low as 2500 per year, a sum that can hardly buy you a good pair of shoes. Smart people do this math and is obvious to them that the premiums for this policy are so low that it makes no sense not to have the funeral insurance policy
Without a funeral insurance cover, your immediate family will hurt more
Smart people also realize one more thing. During a funeral, the people who are affected the most (i.e. your loves ones), are also the ones who usually have to foot the bills associated with the funeral. A death in the family is quite devastating just as is, and there is no need to compound this with additional financial concerns.
Someone smart enough to understand this logic is obviously smart enough to buy a policy that can relieve this burden from his or her loved ones in the event of a death in the family
No one can predict death
Finally, all smart people know one thing. Predicting a death in the family is almost impossible. Every death in a family is almost certainly unexpected. Even in the case of terminal illness, usually the doctors will give a time range and not an exact day when someone will succumb to the illness.
What is the smart thing to do then?
Is makes plenty of sense to smart people to armed themselves with an insurance policy for risks that they cannot accurately predict or manage.
At insureafrika, we specialize in providing you with the quickest tools to get quotes or many types of insurance products sold by insurance companies in Kenya.
Benefits Of Buying A Funeral Insurance Cover In Kenya
What benefits can one expect to experience after buying a funeral insurance policy? This is an important question for everyone who either is planning to buy one, or already has a policy in place.
The benefits of the policies vary from company to company, and it may also be dependent on whether the funeral insurance policy is an independent policy or is part of another policy (e.g. a travel insurance policy, or a health insurance policy).
When a funeral policy is part of another policy it is usually called a last expense cover. Here are some of the specific benefits of buying a funeral insurance cover in kenya.
Most funeral plans will cover the costs incurred at the mortuary. This means that the bereaved will not have any complications when picking the body from the morgue. It is important however to know what the policy limits are.
There may be limits based on the number of days the body will be covered while at the morgue, or limits based on the total amount of money the insurance company will pay for one person. Be sure to get information about any such limits.
Funeral plans will also include the cost of a casket for the bereaved. The family will not be required to spend any money on a casket unless the family wants a more expensive casket beyond he limits of the policy
The insurance company will meet the cost of transport of the body. Some covers may also cover this cost for the immediate family. However, this will depend on the specifics of the policy.
When buying a funeral cover it helps to ask whether or not the insurance company will include the cost of transport for the immediate family. Some policies give you access to a hearse, which may have some sitting space for members of the immediate family.
Putting up a newspaper advertisement is a well-established routine for many families in Kenya. A funeral insurance plan usually covers this cost for you. In this regard, you should be aware of the type and size of space the insurance company will spend on the advert. If you want to increase the size of the advert, the insurance company may not pay the extra fees
Refreshments during Burial Ceremony:
Some insurance policies will also include a provision for snacks during the burial ceremony. In this case, some of the costs associated with the funeral ceremony can be offset. As you buy a funeral insurance policy be sure to ask whether these costs are included in the policy.
Some companies prefer not to get entangled with the family of the bereaved, especially in the case where the policy holder dies. These companies prefer to issue a lump sum payment to the family of the bereaved. In this case, the family can make decisions based on the priorities they have.
This approach allows families greater flexibility when dealing with their specific needs, but at the same time can result in wrangles and disagreements. Whatever the case, it is upon the policy holder to see what will work best given their understanding of their families.
Key Items Excluded by Kenya Funeral insurance Policies
Did you know that a funeral cover is not a complete solution to the financial demands of a funeral? The truth is, most funeral covers, just like other insurance covers, have very specific benefits and have limits.
Policies that have a listed set of benefits will have limits on each benefit, while policies that have no specific set of benefits (lump sum type ) will have a cash limit. Here are some critical things that a funeral cover will not handle for you in case you lose a loved one.
Hospital bills left behind by the departed are not classified as part of the funeral expenses catered for by a funeral insurance policy. Policies that do not list benefits but gives a lump sum to the family allows the planning committee to decide whether to settle any bills left behind.
Generally, such bills would have to be settled either by a relevant medical insurance policy or by funds raised by the family. As you take out a funeral insurance policy, be careful to put in place a financial plan that would take care of any hospital bills.
Funeral insurance plans do not cover the cost of the attire your family members will use during the funeral ceremony. This cost will fall squarely in the hands of the family. Other related costs such as jewelry for the deceased will also not be covered by the funeral cover.
Transport for family and friends
Another key cost that funeral insurance plans will not handle is the cost of transport of the family to the burial site. There are two possible exceptions here. First, if the funeral insurance policy is one where the bereaved family gets a lump sum, then the family can decide to meet this cost using the money.
The other situation is where the hearse has seats that can be used by members of the immediate family. Apart from these two situations, family and friends will have to make their own transport arrangements.
Grave digging Costs
Another cost that a funeral policy may not cover is the cost of digging the grave. The key reason here is that there are varying traditions and expectations when it comes to the digging of graves that insurance companies have no solid basis for costing grave digging.
Cost of Burial Permits
The cost of obtaining a burial permit is also not covered by the funeral insurance plan. The family will be required to raise the money needed for the permit.
These are some of the common exclusions of the funeral insurance plans available in Kenya currently. We would like to point out that these products are highly dynamic and there may be changes on current practices at any time.
Be sure to discuss with your insurer or with one of our internal experts on the complete list of benefits available to you when buying any funeral insurance plan. You can also compare funeral insurance quotes for free on our site if you are ready to buy a funeral insurance policy.
Compare Top 5 Funeral Insurance Companies In Kenya
Did you know that several insurance companies in Kenya have funeral policies that can ease burial preparations when you love a loved one? Here is a small sample of funeral insurance companies with such policies.
Diaspora Funeral Expense (ABC Bank)
ABC bank through its bancassurance wing provides a funeral insurance policy tucked in with their ABC D’ Bouquet product. Among other things, the policy provides a last expense plan for those in the diaspora and includes the cost of repatriation of the body back home.
This policy is ideal for those who live or work away from home and know that it would be very expensive for their families to meet the costs of repatriation of the body back home. You can check for yourself how much it costs to send a body back to Kenya from any of the local commercial airlines as a step towards deciding on whether you need a funeral insurance policy
Funeral Cover (Jubilee Insurance)
Jubilee Insurance has a specific cover designed just to meet the needs of a family organizing a funeral. On their website, the company indicates that their policy covers “mortuary fees, the cost of a casket, hearse, flowers, funeral programs and, refreshments.”
This essentially means that your family may not need to spend on a thing in case you lose a family member. The company offers five levels of cover under their funeral cover each designed to meet the need of different types of clients
Britam Funeral Plan
Britam provides a funeral plan for its clients who are seeking to buy a specific cover for funeral expenses. This cover meets the basic costs of a funeral and kicks on once a family is bereaved. The cover covers your entire family and mas a maximum age limit of 82 years
UAP Jamii Funeral Plan and Diaspora Funeral Plan
UAP has two specialist funeral covers designed to meet the needs of its clients. Under the UAP Jamii Funeral Plan, UAP gives the family of the bereaved a lumpsum meant to aid in funeral arrangements. The Beauty of this plan is that is allows the family to make decisions on what to spend the money on.
On the other hand, hard cash can be a further source of strife for a family. The Diaspora Funeral Plan aims at making it easy to bring back a loved one in case of death abroad. It typically covers cost of repatriation, cost of related travel and funeral costs.
Umash Funeral Plan (Pan Africa Life and Umash Funeral Services)
Pan Africa Life is the underwriter for the Umash Funeral. Umash is a service provider that deals with funeral services and supplies. The Umash Funeral plan makes it possible for you to use their services using an insurance mode. You pay a premium and provided you are bereaved within the life of the policy you will have access to their range of services.
Umash has different levels of insurance depending on your needs and segregated by the amount of premium paid to the company via Pan Africa Life. Umash also sells the product under the name Umash Funeral Assuarance