LARGE sums of money are being lost to unscrupulous funeral insurance providers.
According to FNB Life CEO Lee Bromfield, many consumers with funeral plans are exploited when they are under pressure to pay for a burial, and in some cases, cannot even locate their provider.
By that time it is too late to recover the money owed to them.
‘Those who are lucky enough to even locate the insurer are usually sent from pillar to post, spending more money trying to get their pay-out,’ said Bromfield.
He said the easiest ways to avoid becoming a victim is by paying attention to the provider’s track record and their transparency.
‘Do your homework. Knowing a provider’s track record is very important because that will give insight about their ability to deliver on what they promise.
‘Speak to family, friends and use any other sources of information to inform your decision.
‘If the provider has other services, find out how they treat customers.
Secondly, he warned not to agree to anything that is not understood.
‘A reputable insurer will be transparent about what you can expect to get from your cover.
‘Be careful of insurers who are not forthcoming with information and those who simply ignore your questions.’
He added people should never share their banking or payment details before accepting the offer.
‘Based on risk assessment, any reputable provider should give you ideal options to choose from before concluding the insurance agreement.
‘You should be suspicious of providers that insist on getting your banking or payment details before you have accepted their offer.’
No value added
‘Unscrupulous providers often take advantage of people by promising to provide a number of peripheral value adds.
‘Do not be distracted – real value lies in the pay-out and that should be your focus.
‘Your decision should be based on whether the funeral plan takes care of your needs.
‘In these tough times, it is very easy for people to fall victim to all sorts of funeral insurance scams.’
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