Marketing a Funeral Policy
July 12, 2018
Decades ago, two or three players dominated the insurance industry, but today we are talking about hordes of players marketing a funeral policy.
These new players have done a good job of introducing lots of benefits to customers.
Most South Africans look at ways to cut unnecessary spending and are careful about not paying extra for insurance.
They want to know all the ins and outs of funeral insurance, which is a hugely competitive market in South Africa.
Low premiums Essential to Marketing a Funeral Policy
To stay ahead of competitors, funeral service providers look at ways to market their funeral policies as affordable, and which promise to meet the specific needs of individuals.
They come up with new packages and plans to manage the growing competition, with pre-payments being one of the popular modes of payment when marketing a funeral policy. This is a draw-card for low-income earners who benefit from modern funeral services by paying for funeral cover in installments.
Be on your guard though as there are quite a few fly-by-night funeral businesses in South Africa. They market themselves as those who offer a host of benefits at next-to-nothing premiums.
The reality is that they don’t provide proper services and are in the business briefly to make money quickly. They operate without a licence and don’t comply with the industry’s rules.
Hollard Adds in More Benefits
Do thorough research and look at what reputable funeral service providers can offer you. Take a look at Hollard funeral cover for instance. They, first of all, offered different levels of payout for funerals but geared towards families.
Single people felt cheated. They didn’t think it fair that they should pay the same premiums as those who had families. Because of this, Hollard introduced a lower cost plan marketed as ‘member only’ that covered just one single person.
In 2008, market research revealed that there were families who were suffering financial consequences when the main breadwinner died. Family members had to contend with daily living expenses in the absence of the breadwinner while having the added burden of having to cover the costs of the funeral.
The optional Monthly Provider benefit was marketed to help in the form of a lump sum paid out over 12 months after the funeral. This would assist with expenses such as groceries and school fees. Hollard went on to include more benefits beyond just the funeral.
After Hollard brought out their ‘Monthly Provider’, they continued to add more benefits when marketing a funeral policy for expenses over and above the actual funeral. By listening to what their clients want, Hollard is considered as a main player in the competitive funeral policy market.
The Most Powerful Selling Features
You want a funeral policy that will take good care of you and which comes with powerful selling features. It is up to you to research funeral plans thoroughly so that you can make an informed decision about their product and whether it is something you can rely on and which you can buy with confidence.
Beware of just anyone marketing a funeral policy.
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All info was correct at time of publishing