Most of us have to go through the process of taking out funeral cover. Whether it be for us or our loved one, however in spite of regulations that are intended to protect consumers who take up funeral plans, many continue to be exploited, losing large sums of money in the process. In some cases, by the time people realise that they are being exploited, they can hardly locate the provider.
Lee Bromfield, CEO of FNB Life says the large number of providers that claim to offer reliable funeral cover makes it very difficult for consumers to make the best decision. He says people often take up such plans because they are widely available but warns of the dangers of ignoring the high risk of NOT being paid-out when claiming. He says paying attention to the following could help you avoid exploitation:
1.Do your homework on the provider
Knowing a provider’s track-record is very important because that will give insight about their ability to deliver on what they promise. Speak to family, friends and use any other sources of information to inform your decision. If the provider has other services, find out how they treat customers.
2. Do not agree to anything you do not understand
When being sold funeral cover, ask all the questions that are important to you. A reputable insurer will be transparent about what you can expect to get from your cover. Be careful of insurers that are not forthcoming with information or those that simply ignore your questions.
3. Do not share your banking or payment details before accepting the offer
Based on risk assessment, any reputable provider should give you ideal options to choose from, before concluding the insurance agreement. You should be suspicious of providers that insist on getting your banking or payment details before you have accepted their offer.
4. Focus on the pay-out not peripheral value-adds
Unscrupulous providers often take advantage of people by promising to provide a number of peripheral value-adds. Do not be distracted, real value lies in the pay-out and that should be your focus. Your decision should be based on whether the funeral plan takes care of your needs.