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 Your guide to debt counselling

The National Credit Regulator (NCR) reported more than 20 million consumers to be in debt in 2018 and 40% of them were behind with their payments. Due to the economic conditions in the country, many consumers find themselves incurring too much debt that they cannot repay.

Read more

Should you take a sabbatical this year?

In South Africa, sabbaticals are not as common among the general workforce – but they have become popular among executives and CEO’s. Justmoney finds out what a sabbatical is, how to convince your employer to let you take one, and how to manage your finances before and while you’re away.

Read more

A photographer’s journey into entrepreneurship

This week Justmoney chatted to this 25-year-old to understand what makes her tick, what her thoughts on money management are, and the financial advice she has for other young entrepreneurs.

Read more

Travel insurance through medical aid: Is it enough?

Having travel insurance as an added benefit with your medical aid is common practise, but what does it cover and is it enough?

Read more

Sign Up

To our weekly newsletter for advice you can bank on

Deals

Steers Varsity Cup Monday Madness

Price: R59
When: Mondays
Where: Kimberly

Old Mutual Actuarial Bursary

Price: R0
When: 26 March - 30 May
Where: Nationwide

Tsogo SunBreaks Vacay Special

Price: R1,115 per room
When: 15 -31 March
Where: Gauteng, Cape Town, and Durban