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Funeral Policy Exclusions: What You Need to Know
Funeral Policy Exclusions: What You Need to Know
13 Jul 2021

Funeral policies are a great way to help loved ones carry the cost that comes with organizing a funeral. If you are a policyholder, you may want to pay closer attention to the exclusions that could affect the payout of a claim.

It will help you and your loved ones avoid any frustrations during such a difficult period where a loved one dies.


What are exclusions?

An exclusion is a safety measure that is placed on all funeral policies in South Africa, that can help insurers reduce fraud and dishonest claims. These are events or occurrences that an insurer will not cover due to the high level of risk on your life that it poses. This can affect you when it comes to placing a claim. Your insurer or agent will explain this to you when you are taking out a policy. You will also find a list of exclusions that come with your policy which you can read.


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The effects of the waiting period

In addition to exclusions placed on funeral covers, there is also the waiting period - another safety feature to protect both the policyholder and insurers. A standard 6 month waiting period is placed on all funeral covers, which means that you will not be able to place a claim within the first 6 months of having a policy. The only time where a claim will be paid out within the first 6 months is if a person dies due to accidental death.


How can cause of death effect a payout?

How you die affects if a claim will be paid or not, which is why it is crucial to carefully read the exclusions that come with your document. Informing your loved ones of these exclusions can also prevent any stressful and confusing situations when it comes to them placing a claim. Placing yourself at risk by participating in activities that could be fatal are seen as high risk by insurers and will result in a claim being denied. For example, insurers will not pay out a funeral cover if you:


Participate in dangerous hobbies

Participate in criminal activities

Take part in a riot, military or hostile action

Commit suicide within the first 24 months of taking out a policy

Taking drugs or medicine that has not been prescribed to you

Operating a vehicle when your blood alcohol level exceeds the legal limit


How can you avoid having a claim denied?

Honesty will be the best policy when taking out a policy as this will work in your favour when it comes to the claim stage. Always make sure that you read the exclusion. If there is a segment that you don't understand, you can ask your insurer to explain it to you. It is vital to know what you are taking on before you sign the dotted line. 

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Terms and conditions apply. Eligibility, cover and benefits are determined on individual risk profile. MiWayLife is an authorised FSP (No. 45741) and its product offering is underwritten by Sanlam Life Insurance Limited, a registered long-term insurer. MiWayLife is a division of Sanlam Life Insurance Limited - Reg No. 1998/021121/06