Expert on the “huge threat” that an increase in death grant could trigger. The effect may be similar to that seen with the “granny bonus” and “2% loan”.
The value could be 6450 zlotys or even 7000. Politicians have recently been actively discussing the increase in death grant. It’s obvious that the amount is too low and in need of valorization. However, experts have no doubts that an increase in value will tempt the companies who organize funerals. “Unfortunately, we have recently witnessed several situations which could be cause for concern. The “granny bonus” scheme was introduced, and the prices of public nurseries increased. The government raised the refund on orthopedic devices for patients, and their prices increased almost exactly as much as the refund amount has changed,” says Paweł Skotnicki, insurance and economic expert.
The government is considering the death grant amount.
Currently, the death grant in Poland amounts to 4000 zlotys. This is far too low to cover even the basic funeral costs, let alone additional fees. For several months now, the government has been eyeing up an increase in the death grant amount. Valorization is expected and does not raise controversy. However, there are also some reasons to worry.
“There are a plethora of state benefits that haven’t been valorized for years, while the costs of services in the market have increased. The current 4,000 zlotys is not enough for a funeral, the estimated cost of which ranges from 6 to even tens of thousands of zlotys depending on the family’s decision. The increase of this amount is rational and societally expected. We must however be aware that in the current economic climate, an increase in public benefit often automatically leads to a market price increase. The companies benefiting from this money will definitely be considering a price increase,” says Paweł Skotnicki.
“There is a huge threat of funeral service prices increasing. I would expect a situation similar to the recent event in Koszalin, where the “granny bonus” led to a rise in public nursery prices. The “2% loan” operated on similar principles. The system of increasing the care allowance should be designed in such a way that people, not necessarily companies that raise prices without justification, benefit,” adds Paweł Skotnicki, insurance advisor and economic expert.
“Valorization should be regular. Its amount could be linked, for example, to the average national wage or the minimum wage,” he adds.
You can insure a funeral. The topic of the death grant then becomes less relevant.
An increasing number of Poles are deciding to take out funeral-related insurance. This provides for the organization of the ceremony as desired by the deceased. The insurance also covers the arrangement of affairs related to the deceased’s estate.
“Regardless of whether the death grant will cover a larger or smaller part of the funeral costs, it’s worth remembering that you can insure a funeral and this is a step which is gaining relatively large interest. Customers then only think about the ceremony and not whether they will have enough for a dignified goodbye to someone close,”says Paweł Skotnicki.
“Insurance benefits do not enter into the inheritance pool. After the deceased, it also remains to sort out the property or to arrange inheritance-related matters. This can also be resolved through insurance coverage. It’s worth noting that there may be many more costs and expecting the state to take care of everything is unrealistic. One has to take matters into their own hands and be proactive,” adds the expert.
Source: https://managerplus.pl/ceny-uslug-pogrzebowych-moga-wzrosnac-wraz-ze-zmiana-stawki-zasilku-pogrzebowego-sprawa-wydaje-sie-nieunikniona-21842
