Questions you should ask when choosing funeral cover
- What is the waiting period on my funeral policy?
- Are there cancellation fees and/or penalties?
- What is the annual percentage increase?
- Does the cover allow me to use the funeral parlour of my choice?
- What will happen if the parlour goes out of business?
- What will happen when I can no longer afford my premiums?
- Will my insurance cover the cost of transporting my body if I die in another country?
- Will the policy pay out if I insure someone who’s already insured by the same insurer?
- Will the policy pay out if I have outstanding premiums?
- How many policies am I allowed to take?
- How easy is it to cancel my policy?
- How long will my policy take to pay out?
Factors affecting your premiums
Age: Your age, and that of your co-insured, plays a significant part in the cost of your funeral cover. The older you are, the higher your premiums will be.
Number of people insured: The more people you insure, the more money you’ll pay.
Features and benefits of the cover: the more benefits your funeral cover has, the more you’ll pay. For instance, if your cover includes benefits such as groceries, cash back, and transportation from another country, the cost will be more than a policy without these additional benefits.
Advantages of funeral cover
There is no underwriting with funeral polices, hence insurers cover you from the moment you sign up. However, for suicide and natural death you’ll generally have wait for a certain period of time before you can claim. With suicide, it’s usually six months and with natural death, it’s usually 12 months.
Funeral cover is affordable; you could pay as little as R20 per month. Do remember however that the lower the premium is, the lower the level of cover and benefits will be.
