You have realised the need of owning a life or funeral insurance policy, but you barely understand what to look for when selecting cover that will benefit you and your family.
Read on for tips of getting the right insurance for you.
By: Boitumelo Mmakou
First National Bank Life CEO Lee Bromfield says it’s very important to ask all the crucial questions before signing an agreement with your chosen insurance provider. Do not have reservations about asking too many questions or pretend to know what you are being offered as this could be a costly mistake when you need to claim,” says Lee.
He gives you five important questions to ask when choosing life or funeral insurance.
1.What value does this cover give me and my family?
Lee says you must choose insurance for its value, not because it is the cheapest you can find. Your main objective should be to get the best possible value. Price alone should not influence your decision.
2. What is the claims process and how soon does it pay-out?
Most funeral insurance providers promise to pay-out within 48 hours, but it is essential to understand the requirements for your claim to be successful. “An insurance claim that takes longer than it should, could lead to financial difficulties” he adds.
3. How much am I covered for?
According to Lee, insurers predominantly offer a financial benefit (pay-out), so understand exactly how much you are likely to get to minimise the risk of being under insured or over-insured.
4. Will my premiums be fixed or increased annually?
You have an option of selecting cover with constant premiums or ones which increase annually.
5. How many family members can I cover?
With regards to funeral insurance, you can cover a number of people under one policy. Get clarity on how many people you can cover and what the terms and conditions are.
