FUNERAL POLICY THE MONSTER?

ABOUT FUNERAL POLICIES

• It was around the early 1980's when I joined the insurance industry straight from varsity. At that time, the mining industry, education department, health departments, our local municipalities, homelands' governance and railways were the main employers of both white collar and blue collar employees.
• The insurance reps, now called financial advisors found it easier to find and write the clients all types of insurance policies. The industry used to encourage the insurance reps to bring in mostly clients who authorised their employers to deduct premiums directly from their monthly salaries. We used to call the business, the stop order business.
• The products that were sold to the market were, endowment which guaranteed client 100% growth of their investment after 14 years of investing, life cover with built in endowment, retirement annuity, and term assurance including lumpsum investments and short term insurance.
• Our company realised that the blue collar workers could not afford the premiums on life covers due to their low incomes. Funeral policies called Group Schemes was introduced to this market.The main member could cover self and own immediate family paying only one premium for the whole family. One premium for the whole family.
• Currently doors have been opened to everyone and the intended purpose of a funeral policy has been trampled down. Community members have now been led to regard funeral policies as a cash cow for gainfully employed family members and for the insurance companies'
• Insurance companies have found a boost in their earnings through inflated premiums. Clients have to pay premiums for each insured under the principal members policy. The 13 or 30 people on your policy do not pay premiums individually! The premiums come off the principal members salary alone. The only wish,, is for the insured to die so that funeral benefit payments can be enjoyed. The adverts make it seem as if other people will die but not the principal member!?
• The result of financial strain and endless waiting for people to die? It is what is turning good citizens into becoming society's and close family enemies. They find themselves accused of having been associated with the untimely deaths of own family members. This product is contributing towards the untimely loss of life because one can only claim on death and not disablement. Neither can one benefit from maturity nor pledging the policy as security.
• Help us to value life.