You’ve taken out funeral insurance for yourself and your family. What you never considered is the global coronavirus pandemic turning your world and life upside down. It’s natural to feel uncertain about everything right now, given the current lockdown implications as well as the virus itself. The one thing you should be confident about is your insurance.
When it comes to funeral cover, the concern many South Africans have right now is whether their funeral insurance payouts will cover a death due to complications caused by COVID-19. Will your insurer treat your claim as valid under these circumstances?
As a policyholder, you want the assurance from your insurer that you will be covered for COVID-19 related claims. You might not have considered it, but now might be the right time to review your funeral insurance policy documents. We delve deeper into what you should consider when reviewing your policy.
Why Get A Funeral Plan?
Organising a funeral can be a massive financial burden on any family. From caskets to catering and everything between, things add up. This is where funeral cover comes in.
By paying a monthly premium amount, in the event of your death, a specified amount is paid out to your family. This lump sum helps to pay funeral costs, assisting your family in giving you the dignified funeral you deserve. Now might be a good time to search for funeral plan insurance quotes online.
Funeral Cover Waiting Period
Different insurance companies offer different waiting periods. Some insurance providers offer a 6-month waiting period for death from natural causes. Other insurance providers have a 12-month waiting period for suicide deaths. The one instance, in which a waiting period wouldn’t apply, however, is in the case of an accidental death.
The waiting period is subject to the insurer’s terms and conditions and doesn’t apply to all providers. If you currently have a funeral cover policy in place and have passed the 6-month waiting period, you might not have to worry about future claims. However, this is also subject to your insurer’s terms and conditions.
But, if you don’t have funeral insurance and are looking to take out a new policy for yourself and your family, the 6-month waiting period poses a concern.
As much as you should be practicing good hygiene by washing your hands for 20 seconds, social distancing when in public, and wearing a mask when leaving your home, that does not guarantee you won’t fall ill. And, unfortunately, since we’re entering the flu season, the risk of contracting the virus is much higher.
Is Your Funeral Insurance COVID-19 Applicable?
In light of the pandemic, some funeral insurers have adjusted their policies. Some have waived the waiting period altogether and are providing instant cover for funeral claims. This means that, should you or your loved one die due to COVID-19 complications, your funeral claim will still be paid out subject to the first premium payment. Other insurers are also offering special COVID-19 add-ons to funeral policies at no extra cost to your existing policy.
These new adjustments can be changed by these insurers at any given time. This means that the insurer can alter the conditions of said add-ons at any time. Some funeral insurers have automatically added the COVID-19-add-on to existing funeral policies. While others are offering it as an additional benefit to all existing funeral policies.
Is It Too Late to Take Out Cover?
It’s never too late to protect your family’s financial welfare. COVID-19 has reminded all of us of the value of having the right funeral insurance on hand. Ask your insurer about the possibility of waiving the waiting period on your new policy. Better yet, query whether they have any special benefits that could guarantee your pay-out in the event of a COVID-19 death.
Remember that, when it comes to claims, funeral insurance regulations require full disclosure of all required information. So, be honest about your health. If you or your loved one is already sick and you don’t disclose this information when applying, you run the risk of your claim being declined.
Affordable, flexible funeral policies do exist, and with Isibaya Deals, you can find funeral plan insurance quotes online. Remember that there is more to protect your family from than COVID-19.