The good and bad of funeral policies with Gugu Sidaki Artwork

Take Charge of Your Money

Take charge of your money! Join me, Brendan Dale, as I interview and chat to folk about personal finances. We cover topics such as budgeting, saving, investing, paying off debt, insurance, goal setting, and so much more! Focusing on the basics of personal finances, I like to keep things simple and straight-forward. Managing your money really does not need to be complicated and admin-heavy. A lot can be done by changing your mindset and daily habits. After that, the world is your oyster and you'll find you have all it takes to create and build wealth. Seasons 1 & 2 sponsored by Naked.

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The good and bad of funeral policies with Gugu Sidaki

May 02, 2022 • Brendan Dale • Season 1 • Episode 7

Take Charge Of Your Money podcast with Brendan Dale
Season 2, Episode 7 - 2 May 2022

Sponsored by Naked - The new way to insure your stuff

Funeral policies are big business in South Africa. They play a vital role in helping us in a time of need, but, many people use them as a replacement for life cover. Or, they take multiple policies thinking that they can enrich themselves, which doesn't work out.

There is great value in Funeral Cover, but there are also many misconceptions! Todays guest is Gugu Sidaki (find here on Twitter @gugusidaki). Gugu is a Certified Financial Planner, co-founder of Wealth Creed, author, and speaker.

Main topics discussed:
0:00 Podcast into and thanks to my sponsor
1:27 Gugu Sidaki, CFP
2:54 Why are funeral policies so popular?
3:52 How does funeral cover work?
5:07 Are funeral policies worthwhile?
8:48 Having multiple policies for the same person
11:08 Financial Advisors vs Financial Planners
13:50 Cancelling a policy
16:45 Reasons why a policy would not pay out
21:06 Closing thoughts

Notes

Funeral policies would usually pay out within 48 hours, giving you the financial cover you need to bury a loved one. It's not however meant to make you rich.
There is a limit of R100k cover per individual - irrespective of how many policies you may have.
It's worth discussing cover for family members as it does not make sense to all take out policies for each other.

Top tips from Guru Sidaki

Read your policy document!
Ask questions!
Don't take out policies as a replacement for life cover - it doesn't work like that!

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Brendan Dale

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