One thing in life is certain and that is death. No matter how young, old, healthy or unhealthy you are, we all have a limited time given to us that no one can predict. Some of us like to bury our heads in the sand when it comes to planning for the inevitable, and if you are that person, then funeral insurance waiting periods, will probably apply and you’ll need to be aware of them when taking out your funeral cover (last minute).
What are the waiting periods for funeral insurance?
Suddenly you find yourself with an ill family member and the prognosis is not looking good and you are looking to get funeral cover. You are not alone, as it is a search often done on Google to find a funeral insurance provider that can come to the party before the death of your loved on.
The reality is that you will more than likely not find a funeral insurance with no waiting periods, but rather one with no less than 3 months waiting period, with the average funeral cover ranging closer to 9 months waiting period. That said, you can get funeral insurance with 6 months waiting period or 12 months.
Let’s look at the definition of waiting period – this is the period after the start date of your funeral policy, when premiums are payable monthly, but the principal member cannot claim certain benefits. This means that you will need to pay at least a minimum of 3, 6, 9 or 12 premiums, whatever your waiting period is, before the insurance company will pay a valid funeral claim. Should you claim before the waiting period is over, the insurance company will not pay your claim and your premiums paid will be null and void. The reason for that is that a funeral policy is a risk product. It is very important that you choose the insurance that best suits your need.
If you find an insurance company that offers the minimum waiting period you are looking for, you will need to disclose upfront that you are taking the funeral policy on someone that is already sick. This might prevent you getting the funeral policy you were looking for, but when it comes to claims stage and if the insurance company suspects foul play, you will more than likely have paid premiums for no funeral pay-out anyway.
As with all insurance policies, honesty is your best policy, as well as making sure that you plan in advance, instead of searching for funeral cover when it is sometimes just too late to get a pay-out. Take your head out of the sand and make the investment in peace of mind today.