Life and funeral insurance policies provide South African families with crucial protection when a breadwinner passes away or a family member requires a funeral. The latest statistics from insurers show that nearly 96% of claims were successfully paid out last year, totaling almost R40 billion for more than 890,000 policies.
Unfortunately, some claims are denied, often due to fraud, non-disclosure of material information, policy lapses, or cover exclusions. It is crucial to be honest when taking out cover to avoid devastating financial consequences for beneficiaries.
One common reason for denied claims is suicide, which is often excluded within the first two years of policy inception. Health conditions, dangerous activities, and waiting periods can also lead to claim rejections. Policy lapses, especially in credit life policies, can result in denied claims.
It is essential to understand policy terms and exclusions fully to ensure that the cover provided meets your needs. Seeking advice from financial service providers like SmartAboutMoney.co.za can help individuals make informed decisions when selecting insurance policies.
[ad_2]
Source link
