Ghanaians spend too much on the dead – Insurance experts
Ghanaians spend too much money on funerals, Insurance experts have observed.
They argued that despite Ghanaians preference to give their loved ones befitting burials, families should not spend monies earmarked for education, building projects and health for extravagant funerals.
Mr. Samuel Oduro, Managing Director of Donewell Life Company Limited (DLCL), expressed the concern at the press launch of the Company’s Royal Funeral Policy, in Accra on Thursday.
He noted that in most parts of the world, planning before death was considered a taboo hence contemporary societies had left no option for ensuring befitting funerals therefore the living should consider critical planning by securing insurance policies to ensure stress free funerals.
“Since death was inevitable, it is important that its occurrence is well planned and catered for “, Mr. Oduro added.
Mr. Oduro said in Ghana, funerals had become expensive with funeral homes and other contractors taking over its organisation therefore, pre-planning offered a sound, practical and beneficial gains of securing security and guarantee for deaths and funerals “and that can be done through the new policy.
Mr. Edmund Diamond Addo, Head of Operations, DLCL, highlighting the uniqueness of the innovative policy, said it offered a level premium and a whole life insurance cover.
He said it provided a death benefit for the primary insured and an optional rider that allowed the policyholder to extend coverage to any of his or her spouse, children, parents or parents-in-law.
“The minimum and maximum issuing age for the Main Life is 18 and 59 years respectively, spouse 18 to 59, children 0 to 20 and this expires at age 20, parents; 40 to 74 and for parents-in-law; 40 to 74 and premiums could be made either monthly, quarterly, semi-annually or annually”, he said.
He said in the event of the untimely death of the insured, the benefits help cushion the financial impact on the deceased family by helping pay funeral-related and final medical expenses.
Mr. Addo mentioned the basic policy benefits as the Death Benefits which range from GH¢1,000 to GH¢10,000 and an Accelerated Death Benefit which provided the main life under the policy with up to 50 per cent of the current death benefit to a maximum of GH¢2,000 when he or she is diagnosed by a certified physician for a terminal illness and had up to 12 months to live.
He said the policy in addition, had a third unique benefit known as the Cash Back Rider, which allowed the policyholder to accrue savings by making extra monthly contributions in addition to the life cover premiums subject to a minimum amount of Five Ghana Cedis into the Cash Back account which would accrue interest.