Funeral cover is such important cover for South Africans, and scammers target to get money out of unsuspecting consumers.
Scammers normally have two ways of funeral cover scamming – one that involves face-to-face meetings and the other using mortuary workers to provide details on ‘John Does’ where they then claim on people who have either died long ago or are not aware that they are insured.
When it involves face-to-face, the scammers meet with consumers with the promise of funeral cover – they then take the first ‘premium’ leaving the client with the peace of mind that they are covered, until it comes to claims stage or enquires are made, and the consumer finds out they are not covered… by then it is usually too late to get any money back.
What Questions Should You Ask?
Make sure that you are dealing with a company that is registered and/or is the cover underwritten – this will ensure that there is no foul play on your side, your claim will be paid.
Trust your gut, are you dealing with someone that is reliable? Do they have a broker code? Are they representing a well-known company and have you heard of them before? If you have any concerns contact the cover company directly or you can also contact the Financial Services Board (FSB).
Understand the Paperwork
There is lots of regulation that cover providers must stick to and part of that is making sure that policy documents are easy to read and can be understood by anyone reading them. Make sure you know what you are reading and that it gives you the cover that you and your family need.
Do Your Research
This is not always possible, but it does not mean you need to be on the internet or have access to a computer – ask around the community, this is also important if you are thinking of joining a Stokvel. Ask your neighbours and friends if they know the person, or if they know about the company/Stokvel you want to join.
Don’t Pay Your Premiums in Cash
Where possible make sure that your account is debited or if you get paid wages cash, that you can pay money into a company bank account. This will help with keeping track of and proving payment for your funeral cover.
Finally make sure that your family is aware of the policy you have taken out and let them know where you keep your policy documents so that should anything happen to you, you can rest assured that everything will be taken care of.