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Category Life Insurance

Sluggish economy not impacting consumer demand for funeral insurance

21 September 2015 Lee Bromfield, FNB
Lee Bromfield, CEO of FNB Life.

Lee Bromfield, CEO of FNB Life.

South Africa’s sluggish economy is not negatively impacting consumer demand for funeral insurance.

This is according to FNB Life, the product distributor and administrator of the newly licensed FirstRand Life, after issuing its first 100 000 standalone funeral policies in just 72 days, at a rate of nearly 1 400 funeral policies per day.

Lee Bromfield, CEO of FNB Life says, “The current demand is encouraging as funeral insurance is often not top priority among certain income groups in South Africa. We believe that consumers are beginning to understand the long-term benefits of paying a relatively low monthly premium as opposed to taking up debt to cover the cost of a burial.”

When asked whether the current uptake can be sustained in light of the rising interest rates cycle, Bromfield replied: “We expect the demand to stabilise over time due to reduced disposable income and other market factors.”

“As a business, we are proactively creating products which are easy to take up and simple to understand, offering great value and exceptional customer service. We have also simplified the claims process, to put money into the beneficiaries’ hands much faster.”

While commending consumers for prioritising funeral insurance, Bromfield has encouraged vigilance against unscrupulous practices.

“It is vital to obtain cover from a trusted provider that will pay as they promised in the event that a family has lost its member. Consumers should always ask questions and do their own research to avoid any misrepresentation or misinterpretation of insurance products. It is important to understand payout terms and the number of people covered by a policy,” added Bromfield.

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