If you or a loved one dies tomorrow, is there enough money to finance the final rites? If the answer to this question is anything but yes, then Hugh Reid, General Manager, JN Life Insurance is urging Jamaicans to start planning for funerals as soon as possible.
Mr Reid points out that most persons fail to prepare for these eventualities out of fear of their own morbidity.
“Death is such an emotional subject, that its financial aspects are frequently not addressed. The result is that families suffering from grief often end up in debt, after covering funeral expenses. A significant portion of our population would be challenged to find the sums needed to bury their loved ones,” he declared.
“This is an issue which does not only affect people at lower income levels,” he added. “It often occurs where a breadwinner, in their prime, dies suddenly, with no form of insurance to assist the family to take care of the expenses that arise with this untimely passing.”
Mr Reid opines that that the average cost of a funeral is in Jamaica is between $350,000 and $500,000 based on figures the Jamaica Association of Embalmers and Funeral Directors. However, many Jamaicans are unable to find as little as $30,000. He adds that budgeting for your last rites or that of a loved one, should form a part of any conversation surrounding financial planning because death can occur at any time.
“We don’t know when the Lord will say it is our time, so it is essential to plan for these unfortunate events. Also, sometimes there might be savings but that is used to pay for the funeral and the expenses that come with it, and the family becomes vulnerable to financial shocks after that,” he stated.
“There are also instances where because of our culture, people make big splashes for funerals whether it is for the Nine Night or the day itself. This can set back the family further because they have to borrow to make up the savings,” he said.
Mr Othneil Blagrove, Senior Manager – Sales & Marketing, JN Life Insurance, emphasizes that Jamaicans should seriously consider Family Indemnity and other insurance plans that are geared towards covering funeral expenses.
“Family Indemnity Plans are affordable and allows coverage for up to six persons including in-laws. The premiums can be paid monthly, quarterly, semi-annually or annually,” he said. “Some of these insurance plans, such as the ones offered at JN Life, also carry Critical Illness and Accidental Death benefits. These products allow you to make effective financial plans for your death or the death of a loved one,” he said.
Mr Reid recommends that beyond products such as indemnity plans and whole life insurance, families should take these important steps.
“Beyond insurance, families should also stick to a budget when planning a funeral because at the end of the day they will be the ones left paying off the bills when everything is over. They should shop around to find out which funeral home and packages are best for you. I also recommend using one that is a member of the Jamaica Association of Embalmers and Funeral Directors to avoid potential stresses such as wrong body being buried, poor embalming methods and other issues which can add to their grief.”
“Ensure you also know all the costs and options available to you such as cost of casket, embalming, cremation, burial plot etc. This will help with budgeting. Also explore the option of paying for your funeral or that of a loved one beforehand so that the cost remains pretty much the same even if it happens sometime after,” he added.
The General Manager also wants more Jamaicans to do estate planning.
“Ensure there is another name on your savings and investment accounts no matter how small. It is also essential to have a will and appointing an executor for the will. You can also give someone you trust Power of Attorney over your affairs if you’re overseas or become ill. The Power of Attorney will give someone the authority to act on your behalf in the event of serious illness and an inability to carry out your daily activities. Putting in place these necessary things will ease the stress that come with the inevitable. Therefore, I urge Jamaicans to plan for their final rites or that of a loved one,” he added.
