Guiding consumers since 2009

How to choose the best funeral and life cover for you

By Staff Writer

As important as it is to own funeral and lifetime insurance, very few consumers actually know what to look for when shopping around for suitable cover. This could then potentially put them at risk when they need claim later on.

“It is very important to ask all the crucial questions before signing an agreement with your chosen insurance provider.  Do not have reservations about asking too many questions or pretend to know what you are being offered as this could be a costly mistake when you need to claim,” says Lee Bromfield, CEO of First National Bank (FNB) Life.

What questions should you ask?

Bromer further advised that consumers use the following questions as a guide:

What value does this cover give me and/or my family?
It is important to select your insurance with value in mind, and not cost alone. “Choose insurance for its value, not because it is the cheapest you can find,” said Bromer.
 
While the price of monthly premiums should be looked at and considered, it should not be the main objective for choosing suitable cover. Your aim should instead be to obtain the best possible value cover to suit your needs.
 
How much am I covered for?
“Understand exactly how much you are likely to get to minimise the risk of being under insured or over insured,” suggested Bromer.
 
Policies have developed over the years and also increased in variety, it is important you understand what you are covered for, so you know, should an incident occur, your needs will be met sufficiently.
 
What is the claims process and how is the pay paid out?
“Most funeral insurance providers promise to payout within 48 hours but it is essential to understand the requirements for your claim to be successful. An insurance claim that takes longer than it should, could lead to financial difficulties,” explained Bromer.

To avoid disappointment and unnecessary financial strain in a potentially stressful time, make sure you know the regulations around the pay-out process, so that you can plan around it.
 
Will premiums be fixed or increased annually?
It is important to understand that insurance presents in different forms and options and it is the choice of the consumer as to which option they are comfortable choosing.
 
“Consumers have an option of selecting cover with constant premiums or ones which increase annually. Whichever one you choose, you need to know how much your pay-out will be,” reiterated Bromer.
 
How many family members can I cover?
This one mostly applies to funeral cover, as one can have a number of people ‘under one policy.’ It is essential that you are clear on how many people you are able to cover and what the processes are around the coverage and pay-outs.
 
“You need to remember that the questions you ask before taking up a policy go a long way in helping you get the cover you want. Life or funeral insurance is about securing yourself and your family from financial hardship in the event of losing a family member, take the necessary time to make every decision right,” emphasised Bromfield.

Recent Articles

Featured Raise a deposit for your house in 5 steps

If you’re a first-time home buyer, you could be lucky enough to be  approved for a 100% bond, but if you aren’t, a 10% deposit might be required. This  could be a daunting prospect.  However, a few financial tweaks to your lifestyle and spending habits could get you a foot in the property door and, once you’ve purchased a property, significantly reduce your long-term bond repayments.

Get personal with your finances – and tie the knot

As time passes, your financial products may not live up to your needs. Therefore, it’s important to take stock of what you’re paying for and adjust where necessary. We got in touch with financial advisers to find out how you can get your finances in order, and what you should do to ensure you’re financially stable.

Personal loan or business loan? The best way to finance your business

When starting your own business, you may have to rely on external funding. Perhaps you qualify for a personal loan, but would it be better to take out a business loan instead? We got in touch with a specialist to find out whether it’s best to take out a business loan or a personal loan to assist you with your ongoing business or start-up.

What to do when you’ve been denied a home loan

After months of scanning property sites and attending showhouse after showhouse, you’ve finally found what you’ve been looking for. But your dream of owning a home comes crumbling down when you receive the news that you’ve been denied a home loan. So, what now?

Deals

Takealot January Big Sale

Price: Available on request
When: Until 31 January 2020
Where: Online

Annique Restore Package Special

Price: From R600
When: Until 31 January 2020
Where: Centurion

Ster-Kinekor Senior Citizens Discount

Price: Available on request
When: Daily
Where: Nationwide