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CityPress - - Business -

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.

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