It is never advisable to make big decisions under duress, and funerals are definitely pressurised situations.
Lee Bromfield, CEO of FNB Life reminds us to regularly review all their policies so that, when unplanned events occur, like an accident or even a death, you are in a good financial position to cope with it. Bromfield gives these following tips on how you can save on funeral insurance:
- Don’t cancel your policy
Cancelling your funeral policy when times are tough could leave you and your loved ones financially stranded in the unfortunate event of death, forcing you to take on further debt commitments.
- Combined policies
Having more than one funeral policy with multiple insurers makes the premiums more expensive. You can save a lot of money in administration costs by combining your policies using one insurer. Before switching over to your preferred insurer, check their policy-waiting period for natural and unnatural death to ensure that you aren’t left without cover for the first three to six months.
- Shop around and scrutinise the cover and benefits offered by your insurer to prevent paying unnecessarily higher premiums.
- Pay your policies on time and ensure there is money in your account for the debit order to go through.
- If there is no money in your account to cover the premium, a double debit will be done the following month and you risk your policy lapsing if you have insufficient funds for two consecutive months.
- You may also incur additional bank charges for dishonoured debit orders.
- You will be required to complete a six-month waiting period for natural death when taking out a new policy, while still paying your premiums in full.
It is critical to inform beneficiaries about the policy, or your insurer when beneficiary contact details change, as this may result in benefits being unclaimed if your insurer is unable to track down your loved ones when you pass away.