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Funeral cover ensures that you and your loved ones can have a respectable service and burial. Sometimes, you can even plan aspects of a funeral in advance to minimise the financial and emotional stress that comes with planning a funeral. When a family member passes away unexpectedly, these stresses can be excessive. Knowing what your funeral insurance policy covers, and how the funeral claims process works, will help loved ones navigate the claim and organise the burial and service when the death is unexpected.
Understanding funeral cover claims
Funeral insurance policies pay a lump sum on the death of an insured member. If a member on a policy is insured for R30 000, for example, the policy will pay R30 000 on their death for a valid claim. A valid claim is one where all the policy terms and conditions are met, such as all premiums are paid when due and there are no waiting periods or exclusions.
The claims process for any funeral cover claim is as follows:
- A claim is made, usually telephonically or online, with the insurance company
- A claim form is completed, and any relevant documentation requested
- The claim, along with supporting documentation, is assessed by the insurance company
- Valid claims are paid
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Your insurance company will tell you what documents are required and where to send them. All funeral claims will require a death notice, and/or death certificate as well as a copy of the deceased's ID. When a death is unexpected, such as in a flash flood, fire or car accident, additional supporting documentation, such as police and medical reports, may be requested by your insurance company.
When death is due to an accidental cause, such as a car accident, the insurance company will require a copy of the police report and may ask for additional documentation or reports such as a hospital report or post-mortem report.
If a body is missing, and a family member is presumed dead in a natural disaster such as a flood, you will need to follow legal procedures to declare the family member dead, starting with filing a missing person’s report with the South African Police Services, which will be required for an application to the High Court to declare the missing person dead. Either your lawyer or legal aid can assist you with this.
Insurance companies all aim to pay valid funeral claims quickly but will also require necessary documentation to confirm the death and cause of death. Only once these documents are received can claims be paid out. If a death notice, police report, or any other report is outstanding, there will be a delay in paying the claim.
Exclusions and limitations: why funeral claims may be declined
Funeral cover claims, including claims for unexpected deaths, will be declined if the claim is in arrears or in a waiting period or there is an exclusion.
Waiting periods for natural causes of death
In South Africa, funeral policies usually offer cover for accidental death from the date the policy commences, with death from natural causes covered from six months after the commencement date, if all six premiums have been paid. Natural causes of death include illnesses such as cancer and heart disease. Accidental causes of death include traffic accidents as well as natural disasters such as fire and floods. They are defined by 1Life Insurance as a sudden and unforeseen event occurring at an identifiable place and time, which has a visible, violent or external cause.
Suicide exclusion
In addition, most insurance companies exclude claims from death due to suicide within a certain time frame, such as six months, one year or two years. Your policy documents will have details on any exclusion for death due to suicide.
General exclusions
A general exclusion is where a cause of death is excluded on all policies, and includes criminal and illegal acts, as well as participating in riots. If a member passes away while committing a crime, such as speeding, driving under the influence of alcohol or drugs, or hijacking a motor vehicle, the claim will be declined. If death occurs while a member is knowingly and intentionally participating in a riot, the claim will also be declined. It is important to note that these exclusions apply to the person committing the criminal act, not a bystander or victim.
Mitigating risks and ensuring adequate coverage
You can avoid the frustration of having a funeral claim declined by:
Understanding any waiting periods and exclusions that apply to your policy
Ask your insurance company or financial adviser to explain these to you before you take out a policy. You can also read glossaries on insurance company’s websites that explain insurance terms and phrases.
Obeying the law
Even law-abiding citizens can get caught up in looting and mass rioting as it happened in South Africa in 2021. But, it will impact any insurance claims negatively, so stay away, follow the law and don’t speed or drink and drive, or take drugs and drive, and keep safe!
Keeping yourself and your family safe in natural disasters
Many flood-prone areas have early warning flood systems to let residents know if floods are likely with evacuation procedures in place. Evacuate if you are advised to do so by local authorities or emergency services. WhatsApp groups are a good place to find out about these systems and be notified in advance of any likely flooding. When it comes to fire, have a fire procedure at home, just as you do at work, so that you know where to go if a fire breaks out, and if you can, have fire blankets and a fire extinguisher on hand to put out small fires. Above all, have emergency contact numbers such as the local fire station and ambulance contact numbers on your phone, and make sure all your family members know these numbers and when to use them!
Staying in contact with your insurance company
Whether it is an email or SMS, your insurance company needs to have up to date contact details so they can keep in touch with you, advise you of any changes to your contract and any missed payments. Some insurance companies will also offer early warning notifications if a natural disaster is imminent. Ensure your insurance company has your current contact details and let them know if they change. If you are out of contact for a prolonged period of time, ask your insurance company if they have sent any notifications or documentation so that you don't miss important information.
Importance of premium payments
One of the most important terms and conditions of any insurance policy, including funeral cover, is that premiums must be paid when they are due! If premiums are not paid, the policy may lapse (be cancelled), and funeral claims will be declined. Your insurance company must offer a grace period in which to make up missed payments, which you can find on your policy documents or with your insurance company. 1Life Insurance policies allow policyholders 31 days in which to make up missed payments. If the payment is not made up, cover is suspended, and the policy may be cancelled, which would mean claims would be declined.
1Life Insurance for your funeral cover needs
1Life Insurance offers affordable and convenient funeral insurance policies to meet your needs. Our claims process is transparent and each 1Life funeral claim is allocated a dedicated claims consultant to keep loved ones updated on their funeral claim. Contact 1Life Insurance today and find out how your funeral cover policy can change the lives of your loved ones and ensure they have a respectable funeral.
Top tip: Buy your 1Life Insurance funeral cover online in as little as 10 minutes and save 40% on your monthly premiums!
Stay in touch, stay updated
Knowing what your policy covers and how the funeral cover claim process works will help you if an unexpected death occurs. Always keep in touch with your insurer, review your policy regularly so you know what is covered and what is excluded, and ask your insurance company or financial adviser to explain any terms and conditions or clauses you don’t understand.