How to choose the best funeral and life cover for you

As important as it is to own funeral and lifetime insurance, very few consumers actually know what to look for when shopping around for suitable cover. This could then potentially put them at risk when they need claim later on.

“It is very important to ask all the crucial questions before signing an agreement with your chosen insurance provider. Do not have reservations about asking too many questions or pretend to know what you are being offered as this could be a costly mistake when you need to claim,” says Lee Bromfield, CEO of First National Bank (FNB) Life.

What questions should you ask?

Bromfield further advised that consumers use the following questions as a guide:

What value does this cover give me and/or my family?
It is important to select your insurance with value in mind, and not cost alone. “Choose insurance for its value, not because it is the cheapest you can find,” said Bromfield.
 
While the price of monthly premiums should be looked at and considered, it should not be the main objective for choosing suitable cover. Your aim should instead be to obtain the best possible value cover to suit your needs.
 
How much am I covered for?
“Understand exactly how much you are likely to get to minimise the risk of being under insured or over insured,” suggested Bromfield.
 
Policies have developed over the years and also increased in variety, it is important you understand what you are covered for, so you know, should an incident occur, your needs will be met sufficiently.
 
What is the claims process and how is the pay paid out?
“Most funeral insurance providers promise to payout within 48 hours but it is essential to understand the requirements for your claim to be successful. An insurance claim that takes longer than it should, could lead to financial difficulties,” explained Bromfield.

To avoid disappointment and unnecessary financial strain in a potentially stressful time, make sure you know the regulations around the pay-out process, so that you can plan around it.
 
Will premiums be fixed or increased annually?
It is important to understand that insurance presents in different forms and options and it is the choice of the consumer as to which option they are comfortable choosing.
 
“Consumers have an option of selecting cover with constant premiums or ones which increase annually. Whichever one you choose, you need to know how much your pay-out will be,” reiterated Bromfield.
 
How many family members can I cover?
This one mostly applies to funeral cover, as one can have a number of people ‘under one policy.’ It is essential that you are clear on how many people you are able to cover and what the processes are around the coverage and pay-outs.
 
“You need to remember that the questions you ask before taking up a policy go a long way in helping you get the cover you want. Life or funeral insurance is about securing yourself and your family from financial hardship in the event of losing a family member, take the necessary time to make every decision right,” emphasised Bromfield.