Buy online
Over 40% of South Africans have funeral cover, ensuring they can give their loved ones a beautiful send off when the time comes. However, if a funeral policy is not purchased from a registered financial services provider (FSP), claims won’t always be paid and family members will have to find additional funds or take on debt to pay for a respectable service. These are the questions you must ask to ensure your funeral policy is with a reputable insurance company and that your valid claim will be paid!
Do you have a licence to sell funeral insurance?
The Financial Sector Conduct Authority FSCA) regulates insurers and other financial services companies in South Africa, which includes issuing licences to companies to sell funeral policies. When the FSCA issues licences, they check that the business has funds to cover claims, offers good service and complies with all the required regulations and laws. This ensures you are protected from scams and fraudulent policies, and that if something goes wrong, such as a valid claim is not paid, you have recourse and can seek restitution.
Unlicenced funeral policy providers don’t go through any checks and balances and can scam consumers into paying for cover they don’t have. Not only will a claim not be paid, but you will have lost all your premiums paid! Because funeral policies are so popular in the country, there are many criminals who create scams around selling policies! Funeral insurance remains the most complained about insurance product to Ombuds, for this very reason!
You can learn how to avoid funeral insurance scams in this blog.
Always make sure you buy funeral cover from a licenced provider, which you can check on the FSCA website.
Essential questions to ask when buying a funeral policy
When you have established that you are dealing with a licenced funeral insurance provider, you need to ask these essential questions to ensure you have the most suitable funeral cover for you and your family.
Does the funeral insurance plan allow you to choose your own funeral parlour or undertaker?
Funeral cover should allow you to choose your funeral service providers so you can decide on the services you need and can afford and can negotiate prices. However, if your policy specifies that you must choose a particular funeral parlour, check that they in your area and what services they offer. If you are not happy with the choice of funeral service provider, opt for a policy where you have a choice.
What happens if a member on the funeral policy dies in another country or far from home?
Transporting the remains of a deceased person can be expensive and requires a lot of paperwork! Reputable funeral insurance providers offer repatriation services as part of your funeral insurance to help loved ones with this process. Check what services your policy offers, if they extend outside of South Africa or not, and if they cost any extra or are included as a benefit on the policy. With this information you can choose the most appropriate burial insurance policy for you and your family members.
Can you change the policy if your circumstances change?
You may need to add members to your policy, such as a spouse or child, remove members, for example an ex-spouse if you divorce. You may also want to increase your cover over the years to keep up with the rising cost of funerals. Find out if you can change your sum assured, and/or if your cover amounts increase automatically each year.
You should also check if you can reduce cover, such as if you are finding premiums too high and need to make them more affordable by reducing the sum assured.
Can you make up unpaid premiums?
Unpaid premiums are a common reason for policies lapsing. Licenced insurers have to give you a grace period, such as 31 days, to make up missed premiums. If a premium is unpaid due to the death of the premium payer, insurers will usually deduct the unpaid premium from the sum assured. However, if this does apply it is usually only for a month, two at most, and any other unpaid premiums may result in the policy being cancelled, and no claim will be paid. Check with your funeral insurance company how you can make up missed premiums, and when your policy will lapse due to unpaid premiums.
Can you cancel the policy?
Licenced insurers have to allow for cancellation of policies, without incurring any penalties or fees. This is usually with a month’s notice period, which you can give via email or to the call centre. However, you won’t get any premiums already paid refunded, unless you cancel the policy in the cooling off period, which is only in the first month of the policy.
1Life Insurance for your funeral cover needs
1Life Insurance, a licenced financial services provider, offers affordable and convenient funeral insurance policies. You can tailor your policy to suit your needs and budget and insure up to 16 family members on one policy. 1Life also provides additional value with repatriation and grocery benefits, at no additional cost. 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 beautiful send off.
Top tip: Buy your 1Life Insurance funeral cover online in as little as 10 minutes and save 40% on your monthly premiums!
Final thoughts
Make sure you have enough funeral cover for you and your family and that your premium is affordable. Your policy can change the lives of your loved ones, giving them the send-off they deserve without putting any financial strain on your family! Ask your funeral insurer these questions to find the right policy for your family today!
Published on: 12 February 2014
Updated on: 31 October 2024
