A funeral can be as expensive as R50,000, depending on the type of funeral you want. That is why purchasing funeral cover is important. However, you don’t have to accept every offer that is put on the table. Shopping around can save you a large amount of money.
Justmoney compared funeral covers from four service providers to help you decide which one works for you.
Tip: Ensure that your premiums match your desired cover. For a decent cover at affordable premiums, click here.
There are different types of covers for different kinds of needs, and the payout can range from R5000 upwards. But it is important to keep some things in mind when choosing the best funeral policy.
Have a look at the below table comparing four popular funeral policy providers:
|
|
Sanlam |
Metropolitan |
Capitec Bank |
Assupol |
|
Level of Cover |
Up to R100,000 |
Up to R80,000 |
Up to R100,000 |
Up to R75,000 |
|
Premiums |
From R25
You can choose to increase your premium every year to increase your cover. |
From R40 |
From R25
No premium increase unless you give a 30- day written notice |
From R70 |
|
Waiting Period |
6 months waiting period for non-accidental death and no waiting period for accidental death.
12 months for online applications.
|
Cover for your immediate family is immediate, while cover for your extended family comes into effect after a 3-month waiting period.
No waiting period for accidental death |
6 months, and no waiting period for accidental death |
6 months from the policy’s acceptance date |
|
Flexibility |
You can increase and decrease your cover, as long as the funeral plan has the cover level you require.
|
You can change your cover as and when your life changes. |
You can change your cover as and when your life changes. |
You can increase your cover amount and premiums when you want. |
|
Claim Pay-Out |
4 hours |
Less than 24 hours |
Within 24 hours |
Within 24 hours |
|
Additional Members |
Up to 22 members |
Up to 20 people |
Cover up to 21 members |
Unlimited number |
According to Yaaseen Albertyn, product actuary at Metropolitan, you must personalise your policy according to how many people you want to cover in your family.
“Think about the amount of the cover and how comprehensive the cover needs to be, depending on your needs and the needs of your family,” says Albertyn.
In addition to that, you must consider the length of the waiting period. Remember during the waiting period you cannot claim benefits unless the death is a result of an accident, such as slip and fall, car accident, and drowning.
READ MORE: How to choose the best funeral and life cover for you
Buying a policy with a shorter waiting period will ensure that you’re covered sooner because life is unpredictable. Death can occur any day.
Is it easy to claim on your policy? Albertyn says the process of claiming should be seamless, and the money is paid out as quickly as possible.
“When choosing a funeral policy, you must ensure you are choosing an insurer with a great track record of service excellence and claim payouts,” he says.
Some insurers take less than a day to process your claim, as long as it is valid, and you produce all the required documentation.
Albertyn says you must ensure that your policy is affordable and flexible. As life changes, you must be able to adapt it accordingly. Check if there is an option to adjust your cover or your premiums.
Remember to always update your policy, and adjust your premiums to ensure that they are in line with the inflation rate.
Find another provider
If you are not satisfied with your service provider, you can switch to a service provider that caters to your needs.
While price is often the main consideration when choosing a particular policy, there are many other factors you should consider before making a final decision.
- Service delivery
According to Abertyn, if you are considering changing your policy, it is important to first consider how well the insurance company treated you during your time with them.
Has the company responded to your queries quickly? Are the employees friendly and helpful each time? Do they listen to you properly? Are your issues resolved to your satisfaction? Was it easy to make a claim or resolve an issue?
If you answer no to these questions, start searching for a new provider.
- Conduct research
Before you join the new service provider, you must also ask if it will be able to offer the same service as your previous provider. Will it honour your claims? Does it have the necessary financial clout to do so?
If it has nothing better to offer, then there is no point in joining.
- The best protection for you and your family
Albertyn says switching policies to a cheaper option could be a short-term solution with adverse outcomes such as a significantly reduced pay-out for your family in the unfortunate event of your death. However, if you find a policy that matches your pocket and your needs, there is absolutely no reason why you should not switch.
READ MORE: How to get the right funeral cover
Finding money to bury a loved one can add to the trauma of losing them. It is therefore vital to get funeral cover to ensure that you and your family can afford a dignified funeral.
Justmoney can help you switch to a more affordable cover. Click here for more details.