Insurance Is Not Our Side Hustle
South Africans are more educated about funeral cover and buy it more than any other insurance in the country. With 15 million active funeral cover policies, non-insurers have also decided to enter this “lucrative” market. Retailers, banks, network providers, they all see funeral cover as an easy “add on” product to sell.
Retailers treat funeral cover as a fast sell. Think of it this way; you’re getting a burger on a cold winter’s night at the drive through, you get offered a coffee and why not… you buy it too. This doesn’t compare to the perfectly made single origin coffee you normally have … because the drive-through is not in the business of coffee.
You are paying more than you should
Whether it’s a clothing or grocery store, retailers act as middlemen between you and insurance houses. They charge a fee from the insurer and sell very small cover amounts. This means you end up paying more for far less cover.
The quality of cover is often comparably poor. Retailers sell “Funeral cover only” like most banks. Meaning, if you fall ill or become retrenched the policy does not remain active (i.e. does not become paid up). If family members are added to the policy, they may lose their cover in the unfortunate event of your death.
The amount of family members you can add to your policy is limited. Direct insurance products allow up to 21 family members on 1 policy. Allowing for multiple spouses, children and adult children who may be under your care.
Longer claim period
Claiming is also difficult and may take longer. When you claim at a retailer, they take your details forward to the insurer who may refuse your claim. Retail salespeople are not financial experts and may not explain to you properly the reasons why your claim may be denied. Nor can they explain the benefits clearly, such as whether your policy will be active if you are unable to pay due to illness or retrenchment.
Rather Deal with the experts
Whether you are topping up your existing cover or trading in your old for a newer model with bigger bells and whistles, go directly to those that make protecting your family their #1 priority. Buying directly online cuts out the middleman fees and always allows you to be in control of your policy. Why give the responsibility of covering those that matter to you most to hustlers? Insurance is their side hustle, not ours.