April 2021 update
A word on funeral insurance
The funeral insurance industry has received criticism in the past for paying out less overall than the amount it collects in premiums. As a policyholder, however, this type of situation is mostly avoidable if you understand a few things about cover before buying.
Check if your premium goes up with your age
Policies can be cancelled if you stop making premium payments. That’s why it’s crucial to understand if your premium is:
Stepped (goes up as you age) or
Level (stays the same).
Make sure you have a ‘value guarantee’ in place
A value guarantee ensures that you won't pay more in premiums than you are paid out by your policy. This comes in a few forms:
You get the higher between premiums you’ve paid and the funeral benefit
Your premiums are stopped at a certain age or amount.
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