As we navigate through these challenging economic times, making sure our loved ones are taken care of financially becomes more and more important. This includes anything from ensuring they have a simple savings account, to the big guns like life insurance and funeral cover. Sadly, when it comes to funeral cover, scammers are operating everywhere, and many people are falling victim. For the most part, these scams offer supposedly cheaper and more convenient funeral cover, and they target people who are emotionally exposed at the thought of a loved one passing on.
Funerals can often set your family back as much as R60 000, so it’s vitally important that you have suitable insurance in place to assist you with the costs. There are a few ways to make sure you’re getting a good deal. The following tips will help with assessing suitable funeral cover, enabling you to know what you’re paying for and what you’ll get should the worst happen:
1. Deal with the right person and a reputable provider
Funeral cover has always been seen as a soft target for fraudsters and they usually pretend to be employed by a known insurance or financial services provider. In fact, people often claim to be scammed by close associates like relatives or neighbours! If you are unsure, the person or service provider should supply you with the details of the company that they are representing and their registration with the Financial Sector Conduct Authority (FSCA). If the alleged insurer does not want to give you that information, see that as a red flag and just walk away.
2. Request a policy schedule
Once you have taken out a funeral policy it is customary for you to see the policy schedule as confirmation of cover. The provider is obliged to provide you with this information. A reputable insurer must be transparent and provide all the relevant documents that will give you the assurance to know what is included in your policy and what to do when it’s time to claim. Never accept anything you don’t understand or agree with as providers are compelled by legislation to ensure that their products are easy for clients to understand.
3. Funeral cover need not break the bank
Your service provider can tailor your cover to suit your budget and personal requirements as one policy size does not fit all, so be sure to discuss all options and plans and don’t feel pressured to take on the first option offered.
4. Do your own research
When it comes to legal and financial documents, it’s sometimes easier to avoid the jargon and reading and to just take someone’s word for it. In fact, when it comes to insurance of any kind it’s absolutely critical that you read the fine print yourself and understand clearly what the terms are. Look specifically at waiting periods, exclusions, and the definitions of extended family member relationships that you might have covered.
5. Life cover vs Funeral cover
It is a common misconception that life and funeral cover are one and the same thing. Life cover aims to assist those you leave behind with financial stability and security. Because it’s underwritten, it often offers more cover. Funeral cover aims to simply provide your loved ones with the means to deal with the immediate challenges of your passing and normally pays within a few days of the claim being submitted.
As with everything in our lives, you get what you pay for, so be sure to do your homework and choose a funeral cover that will give peace of mind and that you understand.
“Life is so unpredictable and having to deal with the loss of a family member is a painful time and the concerns about the costs of a funeral, and beyond, can add to the weight of an already difficult moment. WithSanlam Indie Funeral Cover, you can make sure that you and up to 20 of your family are taken care of and spared from the financial vulnerability that comes with burial arrangements. If you’re willing to answer a few more questions, Sanlam Indie’s Life Cover might offer you more cover, while still including a quick pay out portion for immediate funeral-related expenses.” – Edwin Theron, CEO at Sanlam Indie
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This is so true. I always strive to make people aware of certain things to look out for when taking out a funeral cover.