Waiting Periods for Funeral Plans
July 10, 2018
The people of South Africa want funeral cover – they know too well how planning a funeral can break them financially. That’s why you need to understand what waiting periods are.
People see how not having a funeral plan in place can cause a host of problems. That’s why they must check with their insurance provider what policy options are available.
Death is unavoidable. And when a family member dies, whether it is you or someone else, the death shouldn’t be a financial burden.
South Africans are finding that the waiting periods on their funeral policies are onerous. They are paying premiums for which they may not be able to benefit. This, in turn, causes the Ombudsman plenty of headaches.
Why Waiting Periods are here to Stay
Waiting periods are unavoidable in funeral insurance. Most South Africans just want inexpensive funeral cover that pays out in 48 hours to the selected beneficiary on death.
That is as long as the claim is valid and they receive the correct documentation. South Africans want financial support from their funeral policy at the time of the death of a family member.
They have the option of adding additional benefits at a later stage when they can afford too. But it’s the waiting period that is so upsetting.
If you have a spouse, parents or children you want to supply cover for all their funeral-related expenses. According to the Ombudsman, the aspect of a waiting period is causing many complaints.
When your family member passes away, the funeral policy won’t pay during the waiting period. Insurance companies will cover accidental death during the waiting period. These waiting periods of 3, 6 or 9 months – commencing on the date of commencement of policies.
People on the Verge of Dying are the Culprits
The reason for this is that there is little or no underwriting in respect of the risk. Insurers don’t underwrite funeral policies, so this means they don’t assess the risk of clients through medical tests. To prevent signing up clients who are close to dying, the insurer will implement this unpopular waiting period.
The waiting period commences when the insured person can claim the cover. It is frustrating is that no benefit will be paid out if death occurs during this waiting period. With a funeral plan, there is usually no waiting period for benefits on the accidental death of the person. It is when natural death occurs that there is a waiting period.
Shop Around for Shorter Waiting Periods
At Shoprite for instance, they offer affordable and flexible funeral cover packages. Their Old Mutual Pay-when-you-can Family Funeral Plan has a two month waiting period for non-accidental causes of death. That goes with every registration pack or top-up bought.
So from the time you pay your first premium, there is a waiting period before you can claim. As soon as the first premium has been collected, you are covered in the event of accidental death.
Waiting periods cause distress. Compare funeral policies and find the plan that offers you the most. It is the only way.
To get a funeral cover quote, please complete and send the form on this page
All info was correct at time of publishing