Many South Africans believe they’re protecting their family by taking out multiple funeral policies, but they do not realise that it’s not the best financial decision at all.
Imagine your disappointment when you receive 13 cellphone notifications, and they’re nothing more than debit orders from your collection of funeral policies.
According to Will Keevy, head of insurance at InsuranceBusters, many South Africans believe they’re protecting their family by taking out multiple funeral policies.
However, they don’t realise funeral policies are limited to the cost of a funeral. It doesn’t take care of their outstanding debt or secure an ongoing income for their loved ones.
Keevy believes South Africans should reallocate some of the money they’re spending on funeral policies towards life cover, which takes care of what funeral policies don’t.
He recommends that those with two or more funeral policies should do this by consolidating their cover with an organisation they trust.
Similar to debt consolidation, this is the process of reducing the number of providers you need to pay, while simultaneously reducing your monthly costs.
How does this work?
At SmartInsure, funeral consolidation starts by chatting to a financial consultant. The consultant’s top priority is to identify what you want to achieve and find a way to facilitate this.
Who would you like to cover? How much can you afford to pay each month? What would you like to be taken care of if you’re no longer around?
The consultant will take notes and analyse your unique situation. The consultant will then draw up a plan with the same benefits – or the benefits you actually want – at a reduced cost.
If you are happy with the changes, the consultant will guide you through the process of cancelling your redundant funeral policies and taking out those policies you really want.
Keevy explains that although there’s plenty of information on how to take out a funeral policy, there’s little information about how to cancel one.
To help with this, the consultant will provide you with the correct contact details, as well as an outline of how each provider’s cancellation policy works.
“The consultant is essentially mopping up what should have been done in the first place: identifying your needs, and providing a solution,” says Keevy.
He emphasises that funeral consolidation can sometimes halve the costs of funeral policies and, at no additional cost, include life cover as well.