Tips to Save on Funeral Insurance in SA
Often, consumers who are in financial predicaments are quick to turn to their bank statements. They review the viability of grudge purchases like insurance. They see this as a quick solution to free up cash to cover debt obligations. OIften they decide to save on funeral insurance by eliminating the policy, and that is a mistake.
“Although we encourage consumers to regularly review their policies, they should be careful not to make rash decisions under pressure, that would potentially place them in a far worse financial position when disaster strikes,” says Lee Bromfield, CEO of FNB Life. There are other ways to save on funeral insurance.
“A more practical approach is to assess whether the premium you are paying matches your insurance needs and value promised by the provider,” he adds.
Bromfield shares a few tips of how consumers can save on their funeral insurance premiums.
Tips to Save on Funeral Insurance
- Don’t cancel your policy – this is a common mistake that ends up costing consumers more in the long run.
- Cancelling your funeral policy in tought times could leave you and your loved ones financially stranded in the event of death. That might force you to take on further debt commitments.
- Combine 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. If you don’t scrutinise the cover and benefits of your policy, you could be paying a higher premium unnecessarily.
Pay Policies On Time!
- Paying your policies on time. Insurers usually collect premiums on a set date at the end of the month. If there is no money in your account your insurers may collect double the following month. First, you at risk of lapsing your policy if there are no funds in your account for two consecutive months. Second, you may also incur additional charges from your bank if debit orders do not go through. Furthermore, you will have 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 also critical to inform beneficiaries about the policy. Also you should inform your insurer when beneficiary contact details change as this may result in unclaimed benefits if your insurer cannot track down your loved ones when you pass away. “If your beneficiaries are not aware of the cover and you have not updated their details on the policy, you are wasting your premiums,” concludes Bromfield.
So follow these tips when trying to save on funeral insurance. Do not just cancel your policy out of hand.