Due to an increase in the demand for funeral cover, we believe it is important for consumers to be informed so that they do not miss out on the benefits of the cover.
We have seen an increase in the demand for funeral cover over the past couple of years, and believe it is important for consumers to be informed so that they do not miss out on the benefits of the cover. Whether you are still shopping around for funeral cover or you already have funeral cover in place, it is important to keep the following in mind:
1. You can cover your extended family
You can add an extended cover to your funeral plan which allows you to cover your children, spouse, and any extended family members. Depending on your policy, this may come at an additional cost.
2. Your cover ends when you pass away
As soon as you pass away, the funeral cover you took out on your own life will end and your beneficiaries will receive the pay-out for your funeral.
If you are the policy holder for anyone else, like your spouse or children, then that cover will also come to an end when you pass away. However, the person the funeral cover is for can take over the premiums when you’re gone to ensure they stay covered.
3. You can reinstate your cover after it has elapsed
Some insurers will request that you pay the unpaid premiums before reinstating your cover. Insurers may charge interest for the late premium payments and impose new terms and conditions as this is a new contract. Waiting periods may sometimes apply.
4. Your premiums will not be refunded if you cancel your policy
Insurers usually give you a 30-day cooling period. This means that if you cancel your policy within 30 days of purchase, you will be refunded your premium/s for the month. However, if you cancel after 30 days you will not be refunded.
5. No medical exams are required
Unlike life cover, you don’t need to undergo medical examinations when you buy funeral cover. However, there is a waiting period of 3 – 12 months, depending on the insurer. If you pass away because of natural causes during this period, your family will not be allowed to claim, but accidental death will be covered.
6. You get a grace period if you miss your premium payments.
If you miss your premiums, your insurer will cancel your cover. However, depending on the insurer, you will get a grace period of up to 5 months to pay those missed premium payments without losing your cover. It is important to communicate with your insurer to arrange making up the missed payments.
7. If you don’t nominate a beneficiary, your benefit will be paid to your estate.
Usually the insurer will ask you to nominate a person who will receive the pay-out when you pass away. This person can be your spouse, child, or non-family member. If you choose not to do so, the pay-out will go to your estate.
8. Pay-out is received within 48 hours
The insurer usually pays a lump sum to the nominated beneficiary within 48 hours. All the beneficiary needs to do is present the correct documents. These include a death certificate, Identity documents and a bank statement.