Funerals are expensive. Coffins, undertaker fees, burial plots and food and refreshments can cost you thousands of Rands! Even a small funeral can cost over R10 000.
How do funeral policies work?
- Funeral policies cover the main member (the person insured) and additional members including spouses, parents, children, and some extended family members.
- Each member’s funeral can be insured for a different amount. For example, you can insure yourself for R25 000 and your child for R15 000.
- Most funeral policies include benefits such as money for groceries.
Funeral policies pay claims in 48 hours, but remember:
- Claims won’t be paid in 48 hours if documentation is missing such as a death notice, or the insurer suspects fraud.
- Claims are usually paid into the beneficiary’s bank account, but some policies pay undertakers directly.
Be aware of waiting periods
Policies may have a waiting period for death by natural causes, which can be up to 6 months, depending on your insurer. This means you cannot claim in the first six months of the policy if the member died of natural causes such as a heart attack. There is no waiting period for death by accidental causes such as a car accident.
Premiums must be paid each month
If premiums are not paid your policy may be cancelled, with no refund of premiums.
Decide which policy suits you
Look at the amount of cover, premium, additional benefits and how claims are paid when deciding which cover is right for you. Ask your insurer if you don’t understand how the policy works or any of the policy terms and conditions.
Top tip: Make sure your family knows you have a policy so they can claim for your funeral expenses when the time comes.
