Reading up on the terms and conditions of your funeral policy and trying to understand the circumstances that can lead to your claim being delayed is the last thing your loved ones should have to worry about when grieving.
Lee Bromfield, CEO of FNB Life, says, “Asking your insurer the right questions upfront can give you peace of mind knowing that you can effortlessly claim when you need cover the most.” Many consumers only focus on the cost of their monthly premiums and the lump sums that will be paid out in the event of death, and mistakenly ignore important detail in their policies.
Ask these important questions when taking out cover:
1.Who qualifies as a nominated beneficiary?
It has to be an individual who is 18 years or older and cannot be a company, business, charity or trust. Some insurers may also require the beneficiary to be a spouse or family member.
2. What if the nominated beneficiary passes away?
It will be important to update your policy immediately and nominate a new beneficiary. If the nominated beneficiary is no longer around or has passed away, the benefits would be paid into your estate.
3. Does the policy have a waiting period?
There’s often no waiting period for accidental death. However, for natural death and suicide, the waiting period for most insurers is six and 24 months, respectively.
4. Can I add my newborn child to the policy?
Newborn children should be added three months before their birth in order to be covered immediately. Alternatively, the normal six-month waiting period will apply.
5. What if I miss a payment due to financial strain?
Your insurer will collect a double premium the following month. If collection fails for the second time, the policy will lapse.
6. How do I claim?
Some insurers require the claimant to submit a certified claim form, notice of death form, death certificate and a copy of their ID.7.
7. Will my policy lapse if I pass away?
If a spouse was insured under the same plan they will be given an option to continue with the policy as the new principal member.
Source: FNB. Image: Pixabay