Many people who employ household employees often do not take out funeral cover for their employees as they perceive it to be a costly and complicated administrative burden.

“However, due to product innovation and simplicity, funeral insurance has become affordable and easily accessible for small business owners or individuals who hire one or more permanent employees,” says Nthabiseng Sethabela-Makoeng, Product Manager at FNB Life.

“Unlike traditional workplace benefits, which may require you to consult an expert, taking out funeral cover for your household employee is as simple as providing the insurer with the employee’s personal details, choosing a suitable plan, cover amount and paying a monthly premium,” says Sethabela-Makoeng.

Workplace benefits are traditionally known to create trust, commitment and influence a better working relationship between an employer and employee. They play an important role in making employees realise that the employer values them and has their best interest at heart.

Sethabela-Makoeng, says although taking out funeral cover for your household employee is not a legal requirement, it plays a critical role when considering the fact that funerals are expensive and employees may not have adequate cover, resulting in their families looking up to you for financial support, should a tragedy occur.

In most cases employers who do not have cover in place often have to tap into savings or use credit to contribute towards the funeral as an act of goodwill.

Any employee who is a South African citizen or permanent resident in possession of a green bar-coded RSA ID book or Smart ID Card can get funeral cover as a benefit from their employer.

For example, FNB Life offers Employer’s Funeral Plan, ranging from R20 000 for a low premium of R49 and up to R60 000 for R125, with varying discounts the higher the number of employees covered.

Should the insured person pass away as a result of an accident, their loved ones will receive double the cover amount, e.g. an employee covered for R50 000 would receive R100 000. This benefit would be available immediately from the take up date and no waiting periods apply.

However, for natural death, normal funeral cover waiting periods will apply. Claims will not be paid out for natural death within three months and for suicide within 24 months.

“When taking out funeral cover for your household employees there is no need for any medical examination or underwriting.  In the event of death of the insured person, the plan will pay out the specified cash benefit you selected,” concludes Sethabela-Makoeng.