Waiting Period in a Funeral Plan

July 7, 2018

The people of South Africa want funeral cover, and they don’t want a waiting period before payout either.

They know too well how planning a funeral can break them financially. People see how not having a funeral plan in place can cause a host of problems.

But there is a waiting period in funeral cover management, so you need to be aware of that.

So they need to check with their insurance provider what options are available on their policy.

Death is unavoidable, but when a family member dies the death shouldn’t be a burden to others.

Waiting Period in Funeral Plan Management

Waiting periodSouth Africans are finding that the waiting period on their funeral policies is a hindrance. They are paying premiums from which they may not be able to benefit. And this is causing the Ombudsman plenty of headaches.

These periods are unavoidable in funeral insurance. When requesting funeral cover quotes, most South Africans just want a basic, inexpensive funeral cover. They want it to pay out within 48 hours to their selected beneficiary at the time of their death.

That occurs if the claim is valid and the correct documentation is received. South Africans want financial support from their funeral policy at the time of the death of family member.

They may be thrilled that they have the option to add additional benefits at a later stage when they can afford too. But it’s the waiting that is so upsetting.

If you have a spouse, parents or children you want the comfort of knowing that they have cover for all their funeral-related expenses. According to the Ombud, the aspect of waiting is causing many complaints.

When your family member passes away, even it is just a day or two before the expiry of the waiting period; the funeral policy won’t assist complainants. The cover is only for accidental death during the waiting period. These waiting periods are 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. So as not to sign up customers who are on the verge of death, the insurer will implement this unpopular waiting period.

The waiting period commences when the insured person can claim the cover. It is frustrating when the insurer will pay out no benefit if death occurs during this time.

With a funeral plan, there is usually no waiting period for benefits when the death was due to an accident. It is when natural death occurs that there is a waiting period.

Shop Around for Shorter Waiting Period

At Shoprite for instance, they offer affordable and flexible funeral cover packages. The Old Mutual Pay-when-you-can Family Funeral Plan has a two month waiting period for non-accidental causes of death with every registration pack or top-up bought.

Like it or not, from the time you pay your first premium there is a period before you can put in a claim. As soon as you have paid the first premium, you have cover for accidental death.

Waiting can cause distress, but the only way around them is to shop around and compare funeral policies and find the plan that offers you the best.

To get your family funeral cover quote, please complete and send the form on this page

All info was correct at time of publishing