Start saving for your final journey

During a financial clinic last week, I noticed that one of the participants was restless. I decided to prompt him: “What financial issue are you mulling over? Would you like the group to help you come up with the way forward?”

It was like he had been waiting for just such a moment. The problem, it turned out, was that his bosses at work had come up with a scheme that literally forced employees to contribute towards the funeral expenses of their loved ones.

“It is like the company wants to avoid helping employees bury their loved ones. Perhaps it is eating into its profits. My concern is that I don’t feel comfortable saving in such a scheme; it is like I am praying for my family to pass on, or calling upon death,” he said slowly, some sadness in his voice.

But I also saw helplessness. It is a mandatory contribution, so he has no choice but to join the scheme.

I allowed the other participants to talk about this issue before giving my voice to the discussion. They gave testimonies of how difficult and expensive it can be to plan a funeral. They spoke of people camping in the home as soon as news of the death reached the village.

“It means feeding them, three meals a day. This is a huge demand on the family, but it is also necessary, and knowing your friends and relatives are with you during grief is a good thing. If I were you, I would take up the opportunity with haste,” one participant said.

From the discussion, it emerged that during harambees for funeral expenses, the most some households contribute is Sh100. If there are 100 households, for example, this adds up to Sh10,000, which is not even enough to cater for their breakfast during the mourning period.

All in all, the group encouraged our troubled friend, saying death is as certain as the rising sun; only the exact time is unknown.

‘Saving for death’ sounds eerie to many people, but as the group members pointed out, once you are born, you start the walk to your final destination.

Eventuality

My advice to the man was to go ahead and join the policy. But before joining, I advised, read the small print and ask questions for clarity. Only join when you are happy with the explanation. Find out how much you are entitled to for every member of the family — spouse, child, parent and sibling.

Also establish how much the insurance company will add to your savings in case of bereavement. Remember, they don’t keep your money somewhere in a vault, waiting for you to ask for it; they use it to do business and earn more money, therefore it is expected that they will ‘add something’ when you are bereaved.

In addition, it is wise to join a scheme that will give you back all your money in case you decide to pull out, say in two years, or in case you lose your job.

Scheme or not, it is my advice that we all put aside some money every month for this eventuality. Open an account where you deposit something, even if it is Sh500 a month, dutifully. If tragedy strikes, the family you leave behind will be grateful that you did this. At such a time, even Sh500 airtime is a major boost; it can be used to call friends and family as well as coordinate the funeral activities.

Look at saving for death positively.

Photo: investingcaffeine.com