Have you responded to an SMS or been swept up in a phone call with an insurance agent? If either of this sounds familiar and suddenly you find yourself with a funeral insurance plan, then you need to understand what your commitments are.
Why Must I Commit to Funeral Insurance Premium Payments?
If you have taken out a funeral plan, you have committed to contract yourself with the insurance company of your choice. As with any contract, you both have responsibilities to keep the contract in force. The responsibilities of the insurance company are to provide you with your chosen pay-out, when the times comes, if the contract you entered is based on honesty and you pay your monthly insurance premiums.
Your most important commitments are to be honest when you take out your policy, even though you do not have to undergo any medical examinations, you do need to tell your insurance company of any existing conditions or health concerns that you have, when taking out the policy. Secondly, you need to pay your funeral insurance premiums to keep your cover active and to ensure that when the time comes, your cover can be paid out by the insurer when a valid claim is made.
By paying your funeral insurance monthly premiums, this ensures that you keep up your end of the deal. Other benefits of paying your monthly premiums, is that if you took out a funeral policy with a cash back benefit, by paying your premiums monthly, you can get back funeral insurance premiums down the line! Always make sure that you understand what is in your policy schedule and documents.
Regardless if you pay low premiums on funeral insurance, or you cover just yourself or family, once you take out a funeral plan, commit to paying so that you have the cover when it is needed most.