FINANCIAL SERVICES BOARD

Transcription

1 FSB FUNERAL BROCHURE 11/05 5/12/04 3:48 PM Page 1 Contact details FINANCIAL SERVICES BOARD 446 Rigel Park Rigel Avenue South Erasmusrand Pretoria South Africa PO Box Menlo Park Pretoria South Africa 0102 Call centre: /

2 FSB FUNERAL BROCHURE 11/05 5/12/04 3:48 PM Page 2 What you need to know and your rights when taking a funeral cover FINANCIAL SERVICES BOARD Consumer Education Department 3

3 FSB FUNERAL BROCHURE 11/05 5/12/04 3:48 PM Page 3 What you should know about funeral policies The most important feature of any FUNERAL ASSISTANCE POLICY / MASTER POLICY is that the policy should be UNDERWRITTEN by a registered long-term insurance company. This is to ensure that the member is guaranteed of a legitimate claim in the case of an insured event (death). The POLICYHOLDER / MEMBER must be provided with a MEMBERSHIP CERTIFICATE. This certificate must clearly outline the name of the underwriter (insurer); the premium payable; the benefits payable; claim procedures and other important information about the master policy. The master policy must state clearly that the funeral parlour or their agents are not employed by the underwriter or the insurer and are therefore not the underwriters of the policy. It is important for policyholders to know that they have an option to either take the policy benefits in the form of a funeral service benefit or in the form of a cash payment. The certificate should outline all the necessary information for the Policyholder / Member to know such as when does the cover start; what is covered and what are the EXCLUSIONS; waiting periods etc.

4 FSB FUNERAL BROCHURE 11/05 5/12/04 3:48 PM Page 4 Definitions FUNERAL ASSISTANCE / MASTER POLICY Means a legal document issued by the underwriter / insurer containing details of benefits, rates, terms and conditions and has a policy number, which must show on your membership certificate. FRIENDLY SOCIETIES A Friendly Society is a financial institution formed by a group of people with specific needs, who contribute money and save together to assist each other financially for specific needs e.g. a funeral. The maximum benefit is R A Friendly Society is not a profit making business, but any profit made from investing member contributions is shared among all members. MEMBERSHIP CERTIFICATE You must insist on receiving this certificate to confirm that you are a member. This certificate must show you all the details of your policy. ADMINISTRATORS / INTERMEDIARIES This refers to the company authorized by the underwriter / insurer to act on its behalf to sell you a policy. UNDERWRITER / INSURER A long-term insurance company registered with the Financial Services Board that receives your premiums and is responsible for paying the benefits in the case of death. 2

5 FSB FUNERAL BROCHURE 11/05 5/12/04 3:48 PM Page 5 POLICYHOLDER / MEMBER This refers to you as the member who is paying the premiums for the benefits of people nominated by you in the policy. PREMIUMS The amount you pay to the underwriter in terms of the Master Policy. OMBUDSMAN This is an independent person whom you as the member can contact if you are not happy with the reply from the underwriter. His contact details are shown on the statutory notice and on the back page of this booklet. EXCLUSIONS The underwriter / insurer will list conditions or diseases in the policy which if they result in the death of the person covered, no benefit will be paid. 3

6 FSB FUNERAL BROCHURE 11/05 5/12/04 3:48 PM Page 6 Questions that you need to ask and some information that you should receive from the seller 1. Q: Which underwriter do you represent? A: Proof must be provided by the person selling the policy and must be on the application form and the membership certifi cate that is issued. 2. Q: What is the Policy Number? A: This needs to be shown on the application form and the Membership Certificate. 3. Q: Who may I include in the policy? A: These are your nominated persons. 4. Q: How much do I pay? A: This is the amount you will pay and includes all charges and fees. These charges must be clearly shown. 5. Q: Do I pay monthly, quarterly or yearly? A: You must find out when you must pay. 6. Q: Do I pay in advance or arrear? A: You must find out if you must pay at the beginning of the month (in advance) or at the end of the month or in arrear. 7. Q: How must I pay? A: Cash, debit order or stop order. 8. Q: If I pay cash do I get a receipt? A: Yes, it must be an official receipt. 9. Q: Can these premiums increase in the future? A: Premiums could increase if there are too many claims under the policy. 4

7 FSB FUNERAL BROCHURE 11/05 5/12/04 3:48 PM Page Q: For how long are the premiums guaranteed? A: This must be shown in the Master Policy. 11. Q: When does my cover start? A: There may be waiting periods in the Master Policy. 12. Q: What are the waiting periods? A: These will be appear in the terms and conditions of the Master Policy. 13. Q: What happens if death is by accident? A: Usually the waiting periods do not apply. 14. Q: Are there any exclusions? A: These will be appear in the terms and conditions of the Master Policy. 15. Q: What happens if I miss a payment or stop paying? A: You will no longer be covered and if you start payin again, the waiting periods and exclusions may be reapplied. 16. Q: When does cover cease for each person? A: Full details must be given to you, especially for children. 17. Q: Do I get proof of membership? A: You must receive a Membership Certificate and a detailed summary of who is covered, the amount payable, all the waiting periods and exclusions. 18. Q: Can I increase my cover later? A: Yes, you may increase the benefits on your policy if the Master Policy allows, at any time; this will also increase your premiums. Exclusions and waiting periods may apply on the increased benefit. 5

8 FSB FUNERAL BROCHURE 11/05 5/12/04 3:48 PM Page Q: How do I claim in respect of a death? A: The claims procedure must be given to you in detail in the terms and conditions. 20. Q: Can I see the Master Policy? A: You are entitled to see the Master Policy. This is normally done if you feel your are not happy with the answers given to you or are suspicious of the person selling you the policy. The Master Policy should be available at your nearest client services office. 21. Q: Can I cancel my policy? A: You may cancel your policy within 30 days of paying your first premium and receive a full refund if you have not claimed for a death. Thereafter the policy can be cancelled at any time, but no premiums will be refunded. 22. Q: What happens if the whole policy is moved to another underwriter / insurer? A: This can be done, but you must be notified and informed how it affects the persons previously covered, regarding all of the above. A new membership certificate must be issued to you by the new Underwriter / Insurer. If you are feel you are not in an equal or better situation, you must contact the existing Underwriter / Insurer as soon as possible. 23. Q: What happens if I have a complaint or query? A: You or your beneficiaries should first direct your query to the Underwriter / Insurer. If you are not satisfied, you can report the complaint to the Long-Term Insurance Ombudsman or the Financial Services Board. (FSB) NB The details of the Ombudsman and the FSB should be on the Membership Certificate and are also at the back of this information booklet. 6