Not one of us can escape the fact that dying is inevitable. Of course, we don’t relish the thought, so we avoid thinking about it; but we need to. Death is unpredictable and expensive; and if you have not made provision for your funeral, your family members could be left with a huge financial burden.
Standard Bank managing director for insurance brokers, Tetiwe Jawuna, shares 5 steps to choosing the right funeral policy.
Only take out a funeral plan with a reputable, registered provider to ensure your policy is valid and will be paid out timeously.
The insurance industry is not exempt from fraud. You therefore need to be aware of unscrupulous companies, particularly where cover is provided on a group basis, and sales and administration are outsourced to a third party.
Ensure that the seller of the policy is a registered financial services provider and can provide you with their licence number.
Always ask for documentation to prove this. Ask to see proper papers that show which insurance company the policy will be placed with. If your policy is not underwritten by a registered insurer, it is invalid even though you may be paying money towards it every month.
Read the fine print so you know exactly what you’re getting for your money.
For instance, some policies might not cover suicide or accidental death. Make sure that you read and understand the terms of your policy. This will ensure that those insured are paid out without difficulty and the money becomes available immediately in the event of your passing.
Keep your policy documents safe
Always keep the policy document with your will, and tell your family where it is. This will ensure easy access at the time of need.
A policy certificate with information about the person or persons covered must be issued to you.
This information should include:
- Details of covered persons
- Amount of cover
- Minimum premium
- Breakdown of costs
- Full terms and conditions of the policy with the following details:
- Details of the underwriter and their licence number
- Details of the broker and their licence number (if taken through a broker)
- Claim procedures and complaints procedure, including details of the office of the ombudsman and other important information about the policy
- Beneficiary details: nominate and provide beneficiary details when taking out the policy. This will ensure that the claim is processed timeously and there are no unnecessary delays.
Ensure that you receive a receipt if you make cash payments
The receipt must contain the information of the insurance company that has underwritten your policy.
“Death is a stressful and painful event for any family. There are decisions to be made and actions to be taken. Knowing that funeral expenses are covered means that there is one less thing to worry about. While it is unpleasant to talk about your possible passing, it is important to make your wishes known to your family and vital that they are aware of the existence of your policy. It is wise to seek the help of a reputable provider who will be able to assist you with a funeral policy, and take time to prepare a will,” concludes Tetiwe.
