Life cover is designed to pay out a large amount of money to take care of your loved ones, long after you have passed away. This pay out can go towards paying a bond on a home, on-going living expenses and even education. Life insurance can also include cover that pays out if you become disabled and or critically ill to help you adapt your lifestyle.
A funeral plan typically pays out a somewhat smaller amount of money than life insurance. That is because funeral cover is designed to take care of the costs associated with a funeral alone.
It is important to identify what the purpose of your cover is before selecting a solution. If you need a larger amount of of money to take care of loved ones, life cover might be cheaper than funeral cover. If you need money to pay for a funeral, funeral cover may be a better option as it usually pays out quicker.