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How to avoid costly funeral cover mistakes
Funeral cover offers financial support to families during challenging times. However, choosing the wrong funeral cover can result in unexpected financial burdens and added stress. Let us help you choose the right policy to build generational wealth for your family by showing you how to avoid common funeral policy mistakes.
How to assess your needs to avoid costly funeral policy mistakes
Before you buy funeral cover, evaluate your family's needs in order to avoid one of the most common funeral insurance mistakes. Select the appropriate cover amount that will adequately cover funeral expenses, and other costs associated with the death of a family member. Funeral costs range from R6,000 for a small, simple service to over R50,000 for a large, elaborate send-off, depending on factors such as burial or cremation, casket and headstone type, and the number of mourners in attendance.
Choose a policy that accommodates your family structure and preferences. Consider the number of family members you want to include in your funeral cover, including spouses, children, adopted children, in-laws, parents, and other relatives you consider family. 1Life’s funeral cover policies allow you to include a total of 16 blood- and extended family members on your policy.
Expert tip: When you add extended family members to your policy, please remember to specify your relationship to them in order to avoid any delays in the event of a claim.
When choosing funeral cover, it's essential to strike a balance between affordability and adequate cover. Factors that can affect funeral cover premiums include age, health, cover amount, and the number of family members included in the policy. To find an affordable option without compromising on benefits, consider the following tips:
- Shop around and compare quotes from different providers.
- Look for discounts and promotions, such as savings for purchasing online or bundling policies.
- Choose a policy with flexible payment options, such as monthly, quarterly, or annual premiums. With 1Life, you can start building generational wealth for yourself and your family by saving up to 40% when you buy funeral cover from the 1Life website.
Compare funeral cover policies in order to make the right choice
After assessing your needs and setting a budget, compare funeral cover policies from different providers. Look for these key features when comparing policies:
Inclusions: Ensure the policy covers all necessary expenses, such as funeral costs, transportation, and repatriation of remains, if applicable.
Exclusions and limitations: Understand what the policy does not cover, such as pre-existing medical conditions, waiting periods, or specific causes of death.
Claim process: Look for a provider with a straightforward and efficient claim process, including a dedicated claims department and prompt payouts. To lodge a claim with 1Life, call the claims department at 0860 10 51 96, obtain the required documentation for your claim. 1Life pays out benefits within 24 hours, as long as they have received and approved all necessary claim documents in time.
Make sure to read and understand the policy documents before committing to a funeral cover policy. This understanding will help you avoid surprises later on and ensure you make an informed decision. Your 1Life funeral cover policy book covers all the crucial details on terms and conditions, including limitations, waiting periods, and exclusions.
Funeral insurance mistakes to avoid
When selecting funeral cover, avoid common mistakes that could lead to inadequate cover or financial strain. Here are four mistakes to avoid:
Underestimating cover needs: Choose a cover amount that reflects the true cost of a funeral, considering factors such as inflation and changing family needs. Don't settle for a policy with insufficient cover to save on premiums, as this choice could leave your family financially vulnerable.
Focusing solely on the cheapest option: While affordability is essential, don't compromise on cover or policy features for a lower premium. Instead, look for a policy that offers the best value for your money.
Ignoring policy terms and conditions: Read and understand the policy documents, including exclusions, limitations, and the claim process, to avoid unpleasant surprises later on.
Not updating your policy as your family's needs change: Life events, such as marriage, the birth of a child, or changes in financial circumstances, can impact your family's funeral cover needs. Review your policy periodically and make any necessary updates to ensure your cover remains adequate.
Buying funeral cover from 1Life
1Life offers comprehensive funeral cover options catering toa wide range of needs and budgets. To purchase funeral cover from 1Life, follow these simple steps:
- Visit the 1Life website and select the funeral cover product that best meets your needs.
- Fill out the online quote form with your personal information, including your name, gender, date of birth, and contact details. You must be between the ages of 18 and 65 to apply.
- Provide your gross monthly income, which will be used to determine your eligibility for cover and premium rates.
- Agree to the processing of your personal information for insurance and risk management purposes.
- After receiving a quote, you can proceed to purchase your funeral cover online in just 10 minutes.
Remember, building generational wealth for your family starts with making informed decisions about financial products like funeral cover. By avoiding common funeral cover mistakes and choosing a policy that meets your family's needs, you can ensure that your loved ones are protected during life's most challenging moments.
The views and opinions expressed in this article are those of the authors and do not necessarily represent or reflect the views of 1Life Insurance or its employees.
We answer your questions about our products and services!
How can I ensure my funeral cover policy remains up-to-date?
Our new online service centre makes policyholder maintenance quick, easy and convenient. If you have a 1Life policy you can log in to view and manage your policy at any time, using your laptop, mobile device or desktop.
You can also use 1Life’s WhatsApp service centre which is available 24 hours a day, 7 days a week. You can retrieve your policy schedule on WhatsApp and check all your details, including cover and premium amounts, beneficiary and contact details. And, if you have a 1Life Insurance life policy you can update your personal details. If you can’t find what you’re looking for login to the 1Life online policyholder portal for more services and assistance. Alternatively, you can call us on 0860 10 51 94.
What is the importance of specifying relationships when adding extended family to my policy?
It ensures that only eligible family members are covered which the main member has an insurable interest in. Adding extended members where there is no insurable interest may lead to your claim being declined.
What are common mistakes to avoid when selecting funeral cover?
When selecting funeral insurance, it’s crucial to choose adequate cover that accounts for things such as inflation and life changes, ensuring your family isn’t left vulnerable. Opt for a policy that balances affordability with comprehensive features, and regularly review terms and update coverage to match your family’s evolving needs.
Why is it important to read and understand the funeral policy documents?
Understanding funeral policy documents is crucial to ensure that you are aware of important cover information such as benefits, exclusions, and waiting periods. These also serve as proof of who you have covered and for how much (sum assured). This is essentially your contract with your insurance provider and ensures accountability.