We answer the top 6 funeral plan questions
In this article we tackle the top 6 funeral cover questions. If you are still on the fence about whether you need a funeral cover plan, don’t worry – after this article you will be confident enough to make that step and purchase the product.
1. How long is it going to take before you can expect a pay-out?
It’s a good question because the reason you take out a funeral plan is to get quick access to cash in the unfortunate event you or someone in your family passes away, unexpectedly. Most insurers will pay out within 48 hours, provided the correct documentation is submitted to them. Those critical documents are going to include a death certificate, proof of banking and the applicable claim forms.
2. Can I take out cover for my entire family?
Most Funeral Plans include full family protection, but it usually only extends as far as covering your immediate family (your spouse, your children, your parents).
3. Can I select the amount of cover I require?
Different cover level options are normally on offer so you can pick the level of cover you require, at the premium that best suits your pocket. Naturally the higher the benefit level, the higher the premium. But don’t opt for a cover level that is too low – you don’t want to be stuck without enough money to cover a decent funeral, and all the other costs that are likely to pop up.
4. Does the cover increase year on year?
In most cases your benefit (amount of cover you have opted for) will increase when your premium increases, annually. That’s to ensure that inflation doesn’t erode the value of the benefit. If you are presented with an option to increase your cover year on year, when taking out the policy, do so.
5. Are there any medical examinations involved?
Nope, but a waiting period can be imposed before the insurer will pay a claim. Simply put, if you pass away (from natural causes) in a pre-determined time period, after taking out the policy, the insurer will not entertain the claim.
6. Are there any other benefits included?
There normally are additional benefits added to Funeral Plans nowadays. They can include ‘Grocery Benefits’ which pay out a cash amount for a few months after the claim, or even ‘Free Airtime’ add-ons to help with the costs of arranging the funeral.
Funeral Plans are pretty inexpensive but we often overlook their importance, and nowadays insurers are packing more value into their products than ever before.