A funeral plan, also referred to as funeral cover, is an insurance policy that pays out at the time of death. The purpose of a funeral policy is to pay for the funeral expenses of the deceased. This ensures a timely ceremony and spares the family of the deceased any immediate financial stress. With death being an uncertainty that can strike at any time, a funeral plan helps South Africans in ensuring a befitting farewell within 1 to 2 days after submitting a claim.
Sign Up for Cover
Firstly you have to choose the insurer of your preference and select the cover you can afford. This is usually done telephonically. An agent from the insurer will call you and run you through the sign up process over the telephone which can take about 10 to 15 minutes.
The call will involve truthfully answering all questions, providing accurate information and agreeing to the terms and conditions of the funeral plan. Once this is done, a debit order date will be scheduled. Signing up for cover does not mean that the policy is active just yet as that only happens once the first premim is paid.
Pay All Premiums
The monthly premiums will then be debited from your bank account. The cover technically starts when the first premium is paid and this means that the first debit order must be processed successfully. The funeral insurer will then send you the policy documents by post if it has not already been sent via email.
Despite paying the premiums, you have to understand that waiting periods will be in place during which you cannot claim. This can extend anywhere from 12 to 24 months. The policy will only remain active as long as all the premiums are paid. In other words, all future premiums must be successfully paid via debit order.
Submit a Claim
Upon the death of any person that is covered by the funeral plan, the family members can submit a claim. This will require completing the necessary forms as well as submitting all the required documents, such as a copy of the deceased’s identity document and death certificate.
The claim must be submitted according to the insurer’s stipulated channels, whether this is via email, fax or in person. Then the claim will be assessed by the insurer and processed if there are no restrictions or uncertainty over the validity of the claim.
Payout from Insurer
The final step is the payout from the insurer once the claim is successfully processed. It is usually done by EFT into the nominated bank account within 24 to 48 hours. The money can then be accessed by you to be used as you see firt. This usually involves paying for the funeral of the deceased.
Depending on the type of cover and specific plan, there may also be additional payouts for benefits such as airtime, groceries and transport. Some funeral plans may also pay for a tombstone and unveiling ceremony. At this point the funeral cover will not cease if there are other beneficiaries of the policy who are still alive. However, the premiums need to continue being paid for the policy to remain active.