While it is good practice to get funeral cover, a lot of South Africans are wasting money by taking out too many funeral policies with different providers.
FNB Life estimates that 35% of FNB customers have more than one funeral policy – in effect paying up to 30% more than necessary.
Lee Bromfield, CEO of FNB Life, says: “Having multiple funeral policies makes funeral cover more expensive as each insurer factors in their expenses when calculating your funeral plan premium.”
FNB says that by combining policies and paying one instalment with one provider, you could get more cover. For example, if you have funeral cover worth R10 000 with two different insurers, they would each charge you R35 a month, costing a total of R70 a month. However, if you combine the two policies and only take out a single R20 000 policy, you would only pay about R49 a month.
“Although the intention may be good, consumers currently struggling to make ends meet should avoid the mistake of unnecessarily paying more for premiums. You can still ensure you have a dignified funeral with only one policy,” says Bromfield.