Many funeral policies terminate on retirement or the age of 65. Many people are not aware of this and find out only when a claim is not paid.
According to a case received by the Ombudsman a woman had funeral insurance for her family and when her husband died age 67, she was not paid out because the policy stipulated that cover will cease in respect of any extended family once the spouse or principle member reaches the age of 65.
So even though she was paying R45 a month, she was unaware that her husband’s death was not covered – according to the insurer, the deceased´s cover ceased in 2007 when he reached the age of 65. The Ombudsman had to rule in favour of the insurer.