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Why having more than one funeral policy isn’t a good idea

12 April 2021
1 minute read

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Your funeral policy ensures that you can have a decent funeral, without breaking the bank. But more is not necessarily better!  How can you get the best out of your policy, and save on fees and premiums? We take a closer look.

1. You pay more in admin fees
Every insurance policy has an admin fee to cover the insurer’s administrative costs. When you have more than one policy, you pay an admin fee on each policy. It is cheaper to insure yourself adequately on one policy and only pay one admin fee.


2. The claims process may be delayed
You want a funeral policy claim to be paid quickly, so that family members organising the funeral can pay costs such as undertaker fees. When there is more than one policy, you need to deal with multiple insurers which cause delays.

Top tip: To prevent unnecessary delays be sure to provide all the documentation and information your insurer needs to process a valid claim. 

One exception: extended family members
There is one circumstance in which having two funeral policies may make sense. If you have a policy through your employer and it only covers your spouse and children, you may need another policy to cover extended family members.

What to do if you have more than one funeral policy

  1. Carefully go through each policy, looking at who is insured and for how much, and if the policies have any additional benefits, such as a grocery benefit
  2. Compare the policies and select the one most appropriate for you and your family – remember you can increase the sum assured if you need to and you can add additional members onto most funeral policies. You can ask your financial adviser or insurer to assist with this step
  3. When you have made sure you are adequately covered on one policy, consider cancelling the funeral policies you no longer need

Save money and get the cover you need!
You may not need more than one funeral policy. Work out the cost of a dignified funeral and insure yourself and your family members for that amount on one policy. You’ll save money on admin fees and premiums - cash you can save, spend, or put towards life insurance for your family’s future financial security. 

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