How to save on funeral expenses

By Jackson Okoth

Many people are surprised by the costs and expenses they incur when a loved one dies. Of course, these costs arrive at an already difficult time, often well before life insurance claims can be made or an estate can be settled.

Matters are made even worse for those without any form of funeral cover or regular income.

It is against this background that a decision by the late veteran politician Martin Shikuku to set aside four bulls to be slaughtered at his funeral as well as digging his own grave can be understood.

Settle claims

Funeral costs in Kenya run from about Sh25,000 to millions of shillings depending on one’s status in society, whether a loved one has chosen to be buried or cremated, what kind of service the family would like (venue hire, celebrant, refreshments, flowers, catering), and any other expenses related to the person’s death such as outstanding medical expenses.

All these expenses add up and can place an enormous financial strain on family members and friends left behind. “While the topic of death remains a taboo among many communities, research shows that Kenyans are still willing to save for certainties such as funerals. The only issue has been how to package a product that would still make sense to the mass market,” said Chris Nyokangi, Old Mutual Kenya’s Commercial Director. Not everyone has money stashed somewhere which is available at short notice to cover funeral expenses.

Funeral insurance cover is an excellent way to prepare for the costs associated with a funeral and protects one’s family’s savings for the future. “We settle all claims within 48 hours to allow a client or any of the dependants under this last expense cover to have a decent send off without resorting to stressful fund raising efforts,” said Sheila Gichuhi, Head of Health, APA Insurance Limited.

APA offers both corporate and individual funeral covers, offering a lump sum benefit of between Sh25,000 and Sh100,000. “We make lump sum payments when a claim is received and then leave how this cash is to be used to the next of kin or family of the deceased,” said Gichuhi.

Last expense cover

For as little as between Sh800 and Sh3,000, a client at UAP insurance is able to get a lump sum of between 25,000 and 500,000. “We are working on a plan to settle claims through mobile phone cash transfers in addition to the electronic funds transfer and cheque system that is currently in use,” said an officer at UAP Insurance.

Funeral covers pay for funeral expenses when one passes away; offering the peace of mind of knowing your family is supported in the event of your death. The list of insurance companies offering last expense cover for individuals and or corporates include UAP, Old Mutual, Pan Africa Insurance, Jubilee, CFC Life and APA.

“Our cover is for individual and not a corporate, group or a family cover. There is no cash given out after the demise of a member apart from the services, which are offered by George Woods funeral home. However, if the funeral costs are less than the sum assured the balance of the money is paid to the beneficiary,” said Rose Oyugi, Executive Financial Adviser, Old Mutual Kenya.

She adds that one may need to consider a cover that pays a certain amount to the beneficiary in the event of the demise of the person covered. A client seeking for a funeral cover is normally asked to provide details on date of birth, occupation, smoking and drinking status as well as marital status before a quotation is given on amount of premiums one is required to pay.

Nothing can be more drastic and traumatic like losing a loved one and yet death is inevitable. The latest funeral cover product to enter the market is Old Mutual’s Heshima Plan — a last expense insurance cover designed to provide flexible support to families, employers and relatives in the event of losing a family member or a colleague.

This product has been designed by George Woods Funeral Society in partnership with Old Mutual Life Assurance Co Ltd. The plan provides cover for unlimited number of relatives and employees in the event of death of an insured member.

The list of benefits under this cover include body preservation or payment of morgue fee, casket /coffin, which includes free flowers, transport/hearse which includes free gazebo tent, trolley, lowering gear, public address system, white stickers and red ribbons. Other optional benefits are obituary, catering services and cash payments.

The passing away of a loved one should be a time of reflecting and remembering all the things that made this person special and not worry about financial burdens. It also gives the relatives peace of mind knowing that their loved one can be buried with the dignity and respect that they deserve.