There has seen a greater uptake of funeral policies for customers between the ages of 34 and 45 during the last three years, according to Standard Bank Insurance Brokers.
The financial institution said that previously, the average age of customers taking out funeral cover was between the ages of 45 and 55, but there had since been a visible move in the entry age.
Sonja Oosthuizen of Standard Bank Insurance Brokers said these can be attributed to the fact that customers were becoming increasingly aware of life changes and the importance of making sure that their family’s needs were met.
She said the recent Covid-19 pandemic has also created the realisation that anything could happen and that there should be plans in place to meet the needs and events the pandemic brought.
“The Covid-19 pandemic reminded us that life is uncertain, and anyone can be affected by unexpected events, irrespective of age and lifestyle,” Oosthuizen said
Some customers were said to have also opted to extend the funeral cover to parents and extended family members that they were supporting financially.
Standard Bank said that while younger customers may have become more attuned to their insurance needs in recent times, so too have they become more focused on flexibility and affordability. It said that in the current environment, consumers wanted more affordable options and more choice.
“Traditionally, insurers have taken a bundled approach to policies. This means that they have developed coverage offerings based on assumptions of a certain customer group,” it said.
But due to shifts in consumer demands and preferences, and levels of affordability, this approach was changing.
Oosthuizen explained that the flexible model gave customers the power to decide whom they wanted to cover and for how much. She said this flexibility equalled affordability. “Because it allows the cover to be customised and structured according to a person’s unique circumstances. Essentially, the consumer can decide how much they wish to be insured for based on what they can afford. They pay for something that is tailored to their circumstances as opposed to paying for something that is customised for a group of people.”
In the immediate phases of the pandemic, Standard Bank launched what it called its Flexible Funeral Plan, which offers personalised benefits to clients. It said that because it’s a flexible solution, one could choose what they pay and what they were covered for.
Oosthuizen said that if one went through a financially difficult time for example, they could lower their sum insured for a period or do away with some added additional benefits.
“South Africans clearly appreciate that they can tailor it to their personal needs and pocket – you can personalise premiums at any stage, based on your age and lifestyle. The additional benefits themselves cover everything from memorial costs to catering, airtime, and even monthly groceries for the beneficiary.”
Oosthuizen said that younger customers were sometimes under the impression that insurance was only for older people, but the truth was that in some instances, one’s age and health could be a positive contributor to their insurance premiums.
Oosthuizen added that customers should consider the following when taking out insurance cover:
·Assess your needs and lifestyle, compare insurance offerings, and understand the different types of insurance available.
·Look at the benefits offered, and the terms and conditions related to the benefits. Make sure that you understand the product rules and exclusions.
·Ensure that your personal information is correct and that all contact information is updated – this will ensure that you are made aware of your policy documentation and any changes made to the policy.
·Regularly assess your personal needs and lifestyle. It’s important to review insurance policies when your lifestyle changes. Some insurance policies are applicable to other underlying financial obligations.
Christo Stoman, CFO at BetterSure Financial Consultants, said that the insurance gap in South Africa was a cause for real concern, with the Association for Savings and Investments South Africa (ASISA) recently confirming that many working individuals have a shortfall of at least R1 million in life cover and R1.4 million in disability cover. “While it can be challenging to think about insurance when so many are juggling high food and fuel prices, it’s critical that South Africans have enough cover in place to ensure that their loved ones are financially protected against the unexpected events life may throw their way – whether that’s death, disability, being diagnosed with a serious illness, structural damage to a home, or the loss of possessions,” Stoman said.
BUSINESS REPORT