Lee Bromfield, CEO of FNB Life, the administrative and insurance distribution arm of First National Bank, warned consumers to pay close attention to the terms and conditions that are outlined on funeral plans that are purchased online This is especially important because there can be negative consequences come claim time.
FNB highlighted three key areas to pay attention to, including:
- Don’t be swayed by worthless benefits – your main benefit is your funeral cover, make sure you don’t get dissuaded by other fringe benefits that don’t offer much value, as it does is push your premiums higher. “Real benefits should include things like accidental death benefit for you and your spouse - this adds real value to your funeral plan,” said Bromfield.
- Pay-out vs Premium – There should be a good balance between what you pay and what you get paid when you claim. Bromfield adds the cost of your premium needs to be reasonable, especially if your plan includes more than one family member.
- Speed of the pay-out – in a case of an unexpected loss, a quick pay-out is vital because not many people have thousands of rands to take care of the urgent needs of a funeral. In such cases most insurers claim to pay within 48 hours but when you look at the information a company may require, it might not be ready within that time frame.
“Always remember what is important to you and ensure that you get the best deal,” said Bromfield.
If you’re looking for tips to avoid funeral cover exploitation, click here.