Guiding consumers since 2009

Rising costs have yet to dissuade funeral plan investments

By Staff Writer

Lee Bromfield, CEO of FNB Life, the administrative and insurance distribution arm of First National Bank, broadcasts that the spiralling increase in the cost of living in South Africa this year, i.e. rising food prices and successive interest rates increasing in the first quarter of 2016, has yet to dissuade consumers demand for funeral cover.

And, regardless of the SARB’s decisions to keep interests rate unchanged, economists await a further increase in petrol prices, which in turn will constrain household’s budgets further.

“Our customer data shows a relatively stable demand for funeral cover despite consumers experiencing a tough first-half of the year. One of the plausible assumptions is that consumers are becoming wary of accumulating debt for eventualities such as funerals. Not only is this a smart financial decision, but it also contributes to slowing the rate of people who get into debt for unforeseen occurrences such as losing a loved-one,” said Bromfield.

FNB informs us that over the last nine months, they have sold over 400 000 Funeral policies partly due to the growth in value placed on funeral cover, the business unit have aggressively been making it’s funeral plans available across FNB’S banking platforms such as ATMs and Cellphone Banking.

The improved accessibility to funeral plans remains a key contributor to financial security; it is stressed that people who are in need of funeral cover should remain cautious in regards to unprincipled/immoral industry practices and should only approach reputable providers to avoid financial losses.

“People need to choose a provider they can trust, because among the many players in funeral insurance, you still get some that do not have the interests of the consumer at heart. This is why consumers need to pay attention to which insurance providers they choose,” he said.



Recent Articles

Featured Make rewards programmes work for you

Many retailers and financial service providers have introduced rewards programmes, or loyalty programmes, to retain their customers and make them feel appreciated . These programmes can help you save money, but you have to know how to make them work for you.


Top 5 things to consider before taking on further credit

Nowadays, the process of attaining credit has become easier and faster. Although applying for, and receiving cash on the same day may excite potential lenders, it doesn’t come without serious repercussions if you’re not wise. 

These factors will fluctuate your car insurance excess

When you take out car insurance, your monthly premium is a given. However, you may also need to pay an excess amount if you claim from your policy. But which factors may increase your excess, and how can you bring it down?

Is income protection available to everyone?

If you’re involved in an accident and you’re unable to continue working, how will you ensure that your bills are paid? One way to prepare for this is to take out income protection cover. However, can you do this if you’re a freelancer?


Get 25% off your stay at Monte Vista Boutique Hotel

Price: Available on request
When: Until 31 January 2021
Where: Montagu

Luxury Spa Package Special for R449 at Aurora

Price: R449
When: Until 31 January 2021
Where: Cape Town

Oyster and Champagne Special at Blowfish Restaurant | JustMoney

Price: R129
When: Daily
Where: Cape Town

Latest Guide

Guide to debt rehabilitation solutions