For the most part, insurance companies in South Africa pay out their claims so that their policyholders can cope financially with the aftermath of the reason for their claim. When it comes to funeral cover in particular, these insurance companies understand very well the emotional stress that families experience when they lose a loved one, and are equipped to finalise the claims process as smoothly and quickly as possible.
Contents
While it’s not common to have a funeral insurance policy claim rejected, there are scenarios where this does happen. In this post, we’ll unpack a bit about why funeral insurance is worth considering, what its meant to do for you, and a list of reasons why funeral insurance claims can be rejected.
Our take on funeral insurance
Much as we don’t want to be cliched about this, the reality is that death is a certainty – and so is the impact that it can have on those who are left behind. The thing is, there are things that we can do in order to minimise the consequences that our passing can have on our loved ones. One of these things is to take out a funeral policy so that you can be sure there are financial resources for your family to use in the event of your death.
What is a funeral policy?
It’s not just the loss of a loved one that your family will face. There are also a number of expenses that need to be dealt with in order to lay you to rest, which may sound insensitive, but these expenses are very real and can have a devastating effect on how your family copes.
Essentially, a funeral policy pays out a lump sum of money that your family can use to cover the short-term financial needs that they will experience in the event of your death, like burial or cremation expenses, catering for the funeral, groceries, etc.
When you or a loved one passes away, it can be a great comfort to know that these kinds of costs will be taken care of and that your surviving loved ones can grieve without having to worry about how those funeral bills are going to be paid.
5 Reasons funeral insurance claims get rejected
1. The waiting period isn’t over
Most insurance policies have waiting periods. A waiting period is simply the time between when your policy starts (and premiums are collected) and when you can put in a claim. If you submit a claim before the waiting period is up, your claim will be rejected.
Every company is different but usually, all companies offer policies with an average of a six month waiting period.
2. You didn’t make all the payments
Missed payments are a very common reason for any kind of insurance claim to be rejected, and funeral insurance is no different. If your monthly payments aren’t up to date when a claim is submitted, it’s highly likely that the claim will be denied.
If you’ve realised that you’ve missed a few payments, talk to your insurer and see if it’s possible to catch up or if you’ll need to take out a new policy altogether.
3. You missed an important medical detail
This isn’t a very common reason, because funeral insurers will ask very specific questions in order to make sure that they have all the information that they need. However, in the past, a very small number of people have chosen not to fully disclosed important medical information. This could be either a medical condition, like diabetes or hypertension, or it could include symptoms they have experienced, which could indicate that they have a medical condition, like an irregular heartbeat.
The rule of thumb is to share all details of your health, no matter how insignificant they might seem.
4. Wrong information
Putting in a funeral insurance claim can be an incredibly emotional experience, unfortunately, it has to be done in the right way, with all the correct information.
In South Africa, for example, you can’t submit a funeral policy claim unless you have registered the death at your nearest Home Affairs office or at your preferred funeral home. Your claim also can’t be processed if you haven’t submitted the correct documents, such as a certified copy of the death certificate. It’s also vital that you provide complete information and don’t include any false details on the claim form or the beneficiary form.
5. The claim is for an excluded event
When you take out an insurance policy, you’ll be provided with policy documents that will give you all the relevant information about your cover – including a list of exclusions. These are things that your policy won’t cover. A few examples could include death as a result of participating in criminal activities or taking drugs that weren’t prescribed for you.
If one of the exclusions on your policy applies to your claim, then your claim will most likely be denied.
Good advice
No matter what type of insurance you get, it is absolutely vital that you review the terms and conditions of your policy. All of this information (and more) is exactly what you will find in these documents and knowing what you are and aren’t covered for will help prevent you from being in a position where your claim is denied.
We hope that you feel informed – because that’s our mission. To ensure that you have access to free advice and tools that will equip you with what you need in order to make practical decisions.
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