Demystifying funeral cover for kids

19 November 2018: Although the possibility of losing a child is the last thing any parent would want to consider, it is essential to have funeral cover in place should an unforeseen event occur.

 Nthabiseng Sethabela-Makoeng, Product Manager at FNB Life says like any form of funeral insurance, this type of cover is taken out to ensure that parents or guardians can cater for expenses associated with arranging a funeral in the unfortunate event that a child passes away.

She addresses key questions that consumers often have about funeral cover for children:

  • Can you insure any child – any biological, legally adopted, foster, step children and grandchildren or close relatives can be covered in a policy.
  • Are the rules the same –  according to the insurance act, the rules for children covered under funeral insurance slightly differs compared to other Insurance policies.

In terms of the cover amount, children between the ages of 0 to six years old can only be covered for a maximum of R20 000. For children between the ages of six to seventeen years, the maximum cover amount is limited to R50 000.

From the ages of 18 and older, there are no legal restrictions to the cover amount.

  • How many children can be covered in one policy – while the isn’t a specific regulation on the maximum number of children that can be insured, the limit differs from insurer to insurer.

For example, FNB Life allows customers to cover up to eight children, with up to five children covered for free on the Family Bundle.

Is there a waiting period for children – there’s no waiting period for accidental death. For natural death the standard waiting period is six months. However, this can vary depending on the insurer’s terms and conditions.

  • Does the cover end when the child grows up – most Insurers end children’s cover at the age of 18 and others at the age of 25, i.e. cover falls away. The parents will then be required to add the child as an extended family member and will be charged standard rates. However, with FNB the child’s cover does not fall away. The child can remain covered at the same rate as long as the plan remains active.

 “When taking out funeral cover for children, it is essential to thoroughly go through the terms and conditions of your policy to fully understand what you are covered for,” concludes Sethabela-Makoeng.