What is the maximum amount of Funeral Cover I can have?
You can have policies with different insurers, with up to R100 000 of cover per insurer. You are also allowed to have more than one policy per insured life with the same insurer. By law, an insurer can only pay out a maximum of R100 000 per life on a funeral policy. So as long as the overall cover limit is R100 000 or less, both will pay out in the event of a valid claim.
Can I be ‘overinsured’?
First off, you need to determine your specific needs in relation to the costs associated with death and funerals. You may become overinsured specifically in relation to funeral insurance, and where a different product (for example life insurance) would be more appropriate than multiple funeral insurance policies.
Can you get funeral cover for your parents?
The older our parents get, the greater the possibility of them dying; however, even if they are older than 70 or even 80 you can still take out funeral cover for them, subject to entry age limits defined by the financial institution as outlined further below.
Why is it important to buy funeral cover for your parents or even parents-in-law?
Giving our parents a proper farewell is the least we can do to thank them for what they’ve done for us. But funerals are expensive, even the small ones. Having affordable funeral cover for your parents or parents-in-law, will help you to cover the expenses. In most cases, funeral policies pay out quite fast – with24 hours – which makes the planning of the funeral that much easier.
What is the maximum age for funeral cover in South Africa?
The age limits vary depending on the type of funeral plan you choose and who you want to cover. The age limits apply to both the policyholders (that is the person taking out/paying for the policy but who isn’t also an insured person) and the insured person (that is the person on whose death the funeral cover is payable).
- The age of people who can be covered with a funeral plan must be less than 85-years-old. So, you can cover your 60-year-old parents, or your 70-year-old parents-in-law or even your 80-year-old adoptive parent.
- It’s also important to note that there is a maximum entry age for the policyholder too – this would be you if you are taking the funeral cover out for your parents. The maximum age varies from product to product.
Who can you cover?
You can generally cover your
- own, life
- your spouse/s partners
- step or adoptive parents and your spouse/partner’s own, step or adoptive parents.
- children – the biological or legally adopted children
- A stillbirth benefit may also be included for babies that die after 28 weeks of pregnancy but before delivery.
How do I claim from a funeral policy if I don’t want to continue paying for the policy?
Whether you can claim a funeral policy when you stop paying the premiums depends on the kind of funeral policy you took out. For example, some insurers allow members who have not made any claims for five years in a row to receive their fifth year’s premiums back in cash.
There is usually a 30-day cooling-off period, which means that if you cancel your funeral plan within the first 30 days (for any reason whatsoever) you should receive a full refund of that month’s premium which you have paid, provided that you have not claimed. But if you cancel your funeral policy after the 30-day cooling-off period, you will not get anything back.