Best Funeral Cover for Parents

Every plan sets a maximum entry age for parents, and the limits differ a lot. Capitec and Sanlam's digital plan accept parents from 26 to 85. Liberty, Standard Bank and Old Mutual go to 84. Others stop at 75, and 1Life stops at 65 for parents-in-law. If a parent is older than a plan allows, the plan will not take them, so start with the table below.

Two more things to check. The person who holds the policy also has an age limit: on Old Mutual's Comprehensive+ plan the policyholder must be 54 or younger for the parent plan, even though parents can be up to 84. And some plans do not take parents at all: the Abacus plan sold at Pep says parents and extended family cannot be added.

Every cell in this table comes from the provider's own published terms. Premiums are left out because they depend on each parent's age and the cover chosen, so ask for a quote for the same cover amount from each provider.

The plan pages linked above list contact details and full plan terms.

The law caps the waiting period for natural death at six months, or a quarter of the policy term if that is shorter. No waiting period may apply to death from an accident. Every plan in the table above uses six months for natural death where it states a period at all.

A waiting period matters more for a parent than for a young policyholder, because a natural death is the more likely claim. If a parent dies of natural causes inside the waiting period, the funeral benefit is not paid. Some insurers do refund premiums in that case: Old Mutual has a money back guarantee, and Liberty and Standard Bank refund the premiums paid for that life.

If your parent already has funeral cover, you may be able to avoid a new waiting period. A new insurer may not impose one if your parent had a previous policy with another insurer at least 31 days earlier, on similar risks, and had completed that waiting period. Insurers word this differently, so get the waiver in writing before you cancel the old policy. Our guide to funeral cover with no waiting period explains it in full.

Funeral cover is limited by regulation to R100 000 per life insured, per insurer, rising each year with inflation. The regulators do not publish the current inflation-adjusted figure, so treat R100 000 as the starting point. Different insurers do not add together, but several policies with one insurer do.

Most families do not need anything near the limit. 1Life, an insurer, estimates an average funeral at R35 000 to R45 000 with a municipal burial plot, and above R50 000 with a private memorial park. Work out what your family would really spend, then insure that amount. Our funeral cover calculator guide walks through the costs.

Insuring more than you need only raises the premium, and a premium you cannot keep paying is the biggest risk of all.

Premiums for parents are set by their age, and they rise every year. FNB says its premiums increase 8% a year and cover 5% a year. Clientele says premiums escalate by 10% and benefits by 6% each year. Liberty says its premiums currently increase by 3% a year. Ask any provider how the annual increase works before you choose.

If a premium is missed, the insurer must tell you within 15 days, and for monthly premiums the cover must stay in force for 15 days after the due date. A valid claim in that window can be reduced only by the unpaid premium. After that the policy can lapse. When an insurer reinstates a policy that lapsed for unpaid premiums, the rules say it must be on at least the same terms with no new waiting period, but Vodacom, for example, says there is no cover between a lapse and the first successful premium after reinstatement. Keep proof of every payment.

You can put a parent on your own family plan, or take a separate policy on each parent. A family plan is simpler to run and has one debit order. Several plans above let you add up to 4 parents, and Liberty allows up to 8. The catch is that all the cover then sits under one policyholder, and that person's age limit and premium record apply to everyone.

A separate policy gives you control over the amount for each parent and does not put your own cover at risk if a parent's premium is missed. Whichever you choose, make sure your parent's name, ID number and date of birth are correct. Old Mutual lists incorrect age as one reason a claim can be declined.

Home Affairs asks for notice of death within 72 hours, and a burial order is needed before a burial or cremation. Once the funeral is arranged, contact the insurer. Providers commonly ask for:

• the death certificate from Home Affairs
• the notice of death form (DHA 1663, or DHA 1680 where a traditional authority issued it)
• the parent's ID and the ID of the person claiming
• the beneficiary's bank details
• a police report, if the death was not from natural causes

Some ask for certified copies, so check the wording. The insurer must decide on a funeral claim within two business days of receiving all the required documents. That is a decision deadline, not a payment deadline. Providers publish their own payout promises: Assupol, Capitec and FNB say 24 hours, and Old Mutual, Liberty and Hollard say 48 hours, in each case after all documents are in.

ASISA says the main reasons funeral claims are declined are waiting periods, fraud and unpaid premiums. An insurer may not decline a funeral claim for non-disclosure of information it did not specifically ask for before the policy started.

If you think a decline is wrong, try the insurer first, then take it to the National Financial Ombud. The Ombud sends a complaint the insurer has not yet seen back to it, and its service is free. You can phone 0860 800 900 or lodge a complaint at nfosa.co.za/submit-a-complaint/. The Ombud may dismiss a complaint if three or more years have passed since you knew, or should have known, that you had cause to complain, so do not wait.