Most funeral policies cap entry age somewhere between 65 and 80, and premiums climb sharply after 60. Here’s what to check before a pensioner in your family signs up for cover.
Entry Age and Cover Limits
Many insurers stop accepting new pensioner applicants at a set age, often 75 or 80, and reduce the maximum payout the older the applicant is. If you’re comparing policies, confirm the entry age cutoff and the maximum cover amount separately, since both shrink as age goes up.
Premiums Rise With Age
Funeral cover for pensioners costs more per rand of cover than cover for younger members, because the risk of a claim is higher. Expect higher monthly premiums for the same payout compared to a policy taken out in your 30s or 40s.
Waiting Periods Still Apply
Pensioners aren’t exempt from waiting periods. Most insurers apply a waiting period of three to six months for natural death on new policies, though accidental death is usually covered from day one. If a parent or grandparent is switching from another registered insurer, ask whether the new insurer will waive the waiting period for equivalent cover. Many do.
Watch for Reduced Payouts in Early Years
Some pensioner-focused policies pay out only a percentage of the full cover amount if death occurs within the first year or two, even after the waiting period ends. Read the policy schedule carefully before signing, and ask directly what the payout would be if a claim were made in month 7, month 13, and month 25.
What to Ask Before You Sign
Get the entry age cutoff, the exact payout at the applicant’s current age, the waiting period, and any early-claim reductions in writing before paying a first premium. If you’re weighing options for a parent or grandparent, Everest Funerals can walk you through a plan comparison suited to their age and budget.