Guiding consumers since 2009

Nine funeral schemes under investigation

By Staff Writer

The Financial Services Board (FSB) has warned the public this month against nine firms selling funeral policies that may not be underwritten properly.


By law, businesses offering such products have to provide proof that they are underwritten by a registered long-term insurance company. The nine under investigation were given 10 days to respond but they have either failed to respond or to confirm that they are underwritten by a registered long-term insurance company.


The FSB are warning the public against doing business with the following entities: Faizel Dollie Funeral Home, Clarinise Funeral Services, Abomelezi Funeral Services cc, Speelman Family Funeral Home, City Funeral Fund, Holy Cross, Maphutha Dihuswana Funeral Group, Tshwaragano Funerals and Omega Funeral Services.


The FSB said it can’t guarantee that policyholders will get their benefits when they are due as they are not underwritten by a registered insurer. “Policyholders also have an option to cancel their existing policies with the said entities and take new policies  with reputable/ registered entities, but they will be subjected to the new waiting periods, meaning that the cover will not be active immediately,” explained a spokesperson from the FSB.


The FSB added: “When taking out a funeral policy, consumers must ask the company if it is registered with the FSB and confirm the information they are provided with the FSB before taking out a policy.”


Policyholders must also receive a copy of their policy document, which must bear the name of the long-term insurance company which is underwriting the funeral policy. Companies offering policies that are not underwritten in such a way could be subject to a fine or operators could be imprisoned upon conviction.


 

Recent Articles

Featured Everything you should know about tax auto assessment

In 2019, the South African Revenue Service (SARS) launched a system, which was dubbed an “auto assessment”, to assist taxpayers with their annual tax returns. But what does this system entail, and how will it impact you?

What does it mean to be a registered Financial Services Provider?

You may have noticed that financial institutions state that they’re registered Financial Services Providers (FSP). But what does this actually mean, and how does this benefit you as a consumer?

Should the retirement age change?

Across the world, people are retiring later than they used to. However, retirement products are centred around set retirement ages at which point you’d be able to access your retirement savings. But how applicable is the current retirement age in South Africa?

Everything you need to know about wills

Death can leave a lot of confusion and chaos. What happens to your possessions when you die can have a profound effect on those you leave behind. But you can soften the impact by drawing up a will.

Deals

Get 30% off your gym membership with Absa student account

Price: Available on request
When: Daily
Where: Nationwide

Get 10% discount on Rentalcars.com

Price: Available on request
When: Daily
Where: Worldwide

Get up to R5 back in rewards points when buying fuel

Price: Available on request
When: Daily
Where: Nationwide


Latest Guide

Guide to debt rehabilitation solutions