Life insurance and funeral cover are two of the most important financial products you can buy. Funeral cover ensures your family has the funds they need to give you a dignified funeral. Life cover means they will be provided for financially even when you are no longer around.
People often buy one policy for life cover, and another policy for funeral cover. But you can get both in one policy and save on premiums and paperwork. Here’s what you need to know about a combined life cover and funeral policy from 1Life.
What is Pure Life Plus Cover?Pure Life Plus Cover from 1Life is a policy that offers life and funeral cover benefits on one policy. The policy pays out a sum assured to policy beneficiaries in the event of the death of the life assured. These funds can be used to cover costs such as education, food and medical cover, or to pay off the debt of the deceased. The policy will also pay out R50 000 as an accelerated funeral benefit immediately to the beneficiary to cover the funeral expenses of the life assured. An accelerated benefit means the amount paid for the funeral benefit is deducted from the total sum assured when a valid claim is paid out.
1Life Pure Life Plus Cover policies also allow you to add up to 16 members to the policy. These members are covered with a funeral benefit of up to R50 000 per member, which can be used to assist with their funeral and related expenses. Different levels of cover can be selected for each member, subject to certain limits.
How the policy worksHere’s an example so you can see how it works:
Mr Sithole takes out R2 million life cover, which includes a R50 000 accelerated funeral benefit, and names his spouse Mrs Sithole as the beneficiary.
Mr Sithole also adds Mrs Sithole, his two children, his mother and his cousin as additional members on the policy and selects a funeral cover benefit of up to R50 000 for each of them.
Mr Sithole’s cousin dies and R50 000 (the funeral cover selected) is paid for his funeral expenses.
Mr Sithole passes away. Mrs Sithole notifies the insurer and is paid R50 000 as an accelerated funeral benefit to cover his funeral expenses.
Mrs Sithole is paid R1 950 000 (R2 million less the R50 000 already paid for Mr Sithole’s funeral expenses) as the sum assured when the valid life cover claim is paid to her.
ClaimingYou will need to notify 1Life when the life assured passes away. Our claims team will explain the claims process and what documents are required for the accelerated funeral benefit and life cover claim. You can find more about the claims process here.
Insurers may require more detailed documentation for a life claim than for a funeral benefit claim. For example, a death notice stating cause of death could be all that is required for the funeral claim to be paid. Further details, such as a report from a healthcare professional, may be required when the death claim is assessed.
If an additional member passes, notify your insurer so they can tell you what information they need for the funeral benefit claim to be paid.
The benefitsWhy take out a Pure Life Plus Cover policy?
One debit order and one policy document mean less paperwork
- You can save up to 28% on premiums, which means money in your pocket every month.
- Depending on how your bank charges for debit orders, you may also save a few Rands in bank charges because you have one debit order instead of two.
- You also save on paperwork because instead of having two policies to keep track of and two premiums to pay, you have one policy to manage, update and keep in a safe place.
The policy details you need to pay attention toWhile there are clear benefits to taking funeral and life cover together, you need to know the differences between the life assured, main member, additional members and beneficiaries when you take out a combined policy.
Life assured: There is only one life assured on Pure Life Plus policies and the life cover portion pays out when this person passes on.
Members: The life assured, or owner of the policy if this is different to the life assured, can add up to 16 other family members including spouses, parents, children and extended family members as additional members on the policy. A funeral benefit covers the additional members and pays out up to R50 000, depending on the cover selected, to the life assured or owner when a member passes.
Beneficiaries: The beneficiary receives the pay-out for a valid life cover claim. If the life assured dies, the life cover pay-out and accelerated funeral benefit are paid to the named beneficiary on the policy.
When you take a policy make sure you name the correct person or people as beneficiary and add additional members for funeral cover. Also remember to regularly review your policy to make sure you keep the details of beneficiaries and members up to date.
Underwriting, waiting periods and other policy conditions that apply
- Life policies are underwritten, which means you will be asked medical questions and may need to go for an HIV test if you take out a Pure Life Plus Cover policy. Our website has details of where to go for a test and how we are dealing with HIV tests under lockdown.
- Life insurance covers you immediately for accidental and natural death. Suicide is covered after 24 months.
- Funeral claims for death by suicide will not be paid in the first year of the policy.
- Funeral cover claims when death is due to natural causes will not be paid in the first six months of the policy.
Simplify your insuranceWe all want to make our financial lives as simple as possible. Cover that offers a range of benefits and value like 1Life’s Pure Life Plus Cover does that, and more as it saves you money. That’s something we’re all looking for in 2020!
