Guiding consumers since 2009

Three tips when taking a funeral plan online

By Alina Hardcastle

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.

Handy Tip:

If you’re looking for tips to avoid funeral cover exploitation, click here.

Recent Articles

Featured What’s the deal with underwriting?

When you apply for a long-term insurance policy, a financial adviser will ask some personal questions about your lifestyle, family history, health, and even ask you to take some medical tests. This process is called underwriting, but is it really necessary?

 

How are you taxed on your retrenchment package?

Unemployment is one of the biggest problems in South Africa. The emergence of the Covid-19 pandemic has exacerbated the situation with a lot of companies retrenching their employees.  When retrenched, you’ll receive a retrenchment package, but do you know how much tax you’re liable for?

Car repossessed – don’t be taken for a ride

When the country is facing an economic downturn, chances are your finances will feel the pinch. This can lead you to make bad financial decisions such as skipping your vehicle payments. But every decision has consequences and if you don’t pay your instalment, the bank will repossess your car. But what can you do when this happens?

 

Why you should consider gap cover

Your medical aid should protect you from incurring large medical bills when you’re sick. But what if your plan doesn’t cover the full cost of your medical expenses? We got in touch with insurance experts to find out whether gap cover is worth having.

Deals

Office furniture at discounted prices at BDK

Price: Available on request
When: Daily
Where: Johannesburg

Da Vincis Happy Hour Special

Price: Available on request
When: Daily
Where: Cape Town

Use your Absa card and get 30% cashback at Dis-chem

Price: Available on request
When: Daily
Where: Nationwide


Latest Guide

Guide to debt rehabilitation solutions