Funeral Cover in a Nutshell
Losing a loved one is not only traumatic but a life-altering experience. During this difficult time, many families are faced with the financial strain associated with the cost of a funeral. But this should not be, as there are many companies that offer funeral insurance, each one with an array of options and benefits.
Although the broad availability of policies increases the level of competitive pricing in the market, it can make choosing the right policy a bit of a minefield. Where, before, policies were mainly offered by traditional insurers, growth in the market over the last few years has led to non-traditional service providers like mobile operators, clothing retailers, football clubs, and even political parties marketing policies to their customers and support base. This makes it crucial for prospective policyholders to have a good understanding of the market and what to look out for when deciding on choosing a policy. We answer some of your most frequently asked questions below:
What does a funeral cost?
FinMark Trust puts the average cost of laying a loved one to rest at R40 000, but the costs can increase substantially when extra services like transport for mourners, catering, gazebo and tent rentals, etc. are included.
What does a policy cover?
The cover involves paying a monthly or single premium towards an insurance policy that pays out a specified amount in the event of death, making sure that the costs of the funeral, as specified by the policy, are covered.
How much funeral cover can I get?
The insured amount that companies offer can vary from R10 000 up to about R100 000.
What does a funeral policy cost?
The monthly premium the policyholder must pay is determined by three basic variables, being the ages of those covered by the policy, the number of people on the policy, and the amount of cover the policyholder has taken out. Basic premiums start from as little as R25 per month.
Who is covered and how many additional members can be added to the policy?
Most policies allow additional members to be added, including a spouse, children, and extended family members. On some policies, 20 and even more additional family members can be added.
What benefits are offered?
Other than the standard pay-out of the insured lump sum, companies offer various additional benefits. These may include a cashback (a payback of a certain amount of premiums if no claim is made on the policy over a specific timeframe), retrenchment benefit, a waiver of premium (policyholder not required to pay the premium under certain conditions, for instance in the case of disability), immediate cash payment for initial expenses, airtime, and grocery and memorial benefits. Some, like AVBOB, even offer FREE member benefits* over and above the cash pay-out.
How long must I wait before a claim is paid out?
The time it takes to pay out a policy once a claim is lodged can be anything from four to 48 hours, depending on the company that issued the policy.
What is the waiting period?
Most insurers have a waiting period of six months from the policy’s acceptance date before they can claim. However, in the case of a death caused by an accident, policies pay out immediately.
Let the AVBOB family help you find the right funeral policy for your peace of mind today and tomorrow. Contact us for more information about our products and services by completing your details on our contact form or call 0861 28 26 21 (standard call rates apply).
*Ts and Cs apply. FSP 20656. FREE funeral benefits only apply if AVBOB Funeral Service conducts the funeral. AVBOB is an authorised financial services provider. AVBOB is a level 2 B-BBEE contributor. FSP 20656. www.AVBOB.co.za