OUTsurance to offer funeral insurance
OUTsurance will add funeral cover to its life assurance offering. According to Danie Matthee, the chief executive of OUTsurance, the new product will be available next month.
“Our research on funeral policies revealed that an average South African takes out between three and four such policies in his or her lifetime, and there is a high cancellation rate. OUTsurance addresses the consumer issues behind these cancellations and will provide affordable, flexible cover,” Matthee says.
Paul Myeza, the chief operating officer at OUTsurance Life, says: “Typically, a policyholder faced with a difficult life event such as a health challenge is unable to pay the premium for a short period. The client is then faced with debit-order cancellation fees and a cancelled policy, resulting in the need to buy a new policy at a later stage. Unfortunately, the new policy will have a waiting period (a period after the inception of the policy during which you pay premiums but will not be paid out in the event of a claim).
“We allow more flexibility. Clients are offered a one-premium holiday for every 12 months of premiums received. Up to three months can be banked, meaning that, if clients can’t pay the premiums, they may have up to three months where their policy will be unaffected.”
Also, the policy’s “pause and play” feature allows you to suspend cover for up to three months, without the policy being cancelled, although no claims that arise within this period would be covered. The premium will become due in the fourth month, and you will not have to pay back the unpaid premiums.
Cover ranges from R30 000 to R100 000 for the insured, a spouse, children, parents and parents in-law. Additional cover is available for specific events such as transport, a tombstone and catering.
The funeral product will be available from June 1 on the OUTsurance website.