Digital channels continue to simplify and broaden access to various financial products including funeral plans. Nowadays, taking up a funeral plan is quick and easy as people can conveniently use their mobile devices or computer, and be covered in minutes.
In spite of the convenience of being able to take up a funeral plan on digital platforms, you still need to pay attention so that you do not sign-up for the wrong cover or capture incorrect details.
“Whether you are using a mobile device, computer or an ATM, you should always pay attention to the details of your funeral plan. This is especially important because such issues can negatively impact you when it is time to claim. Always remember what is important to you and ensure that you get the best deal,” says Lee Bromfield, CEO of FNB Life.
Here are some of the important aspects you should pay attention to.
Don’t be swayed by worthless benefits
The main benefit of a funeral cover is the pay-out but some providers might have other fringe benefits that do not offer much value, just to push your premiums higher.
“Do not be swayed by any frills that will not add value to your funeral plan. In addition to the pay-out, real benefits should include things like accidental death benefit for you and your spouse – this adds real value to your funeral plan,” says Bromfield.
Pay-out vs Premium
A funeral plan that offers real value for money should provide a good balance between what you pay (premium) and what you get paid out when you claim.
“While the pay-out is the most important aspect on any funeral plan, the cost of your premiums needs to be reasonable, especially if your plan includes a number of family members. Shop around, take up a funeral plan from a reputable provider who will not short-change you in your time of need,” he adds.
Speed of the pay-out
Apart from cases involving long or chronic illnesses, losing a loved one is often very sudden. In such cases, a quick pay-out is vital because not many people have thousands of rands to take care of the urgent needs of a funeral.
Most insurers claim to pay within 48 hours but when you look at the information they require, it might not be ready within that time frame.
“The main document that your provider really requires is the notification of death form, which basically states the cause of death. Be careful of insurers that ask you to submit numerous documents that have little or nothing to do with your claim, hence it’s important to read the terms and conditions.
“Regardless of which channel you use to take up a funeral plan, it is important to have a good idea of what you want. Digital channels are very efficient because they are quicker than a telephone call or other channels. People should remember to pay attention to the detail of the plan on all platforms, including digital channels,” says Bromfield.