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Fradulent Funeral Cover – Lost Money and Empty Promises

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Most people work hard for their money, putting it to work so that they can secure a decent future for themselves.

But now the Financial Services Board (FSB) is warning South Africans that they should be particularly careful when investing in funeral policies.

There are irregularities within the industry. Unfortunately when these irregularities are brought to the attention of policyholders, it is already too late and their money is never refunded.

At the moment the only way to stamp out funeral policy corruption and the host of illegal practices involved with it, to adopt a ‘prevention is better than cure’ attitude.

In South Africa, there are several companies under investigation, but there are likely to be others who are providing fraudulent funeral cover.

Some of these, among others, are Phela Ke Phele in the North West province, Zarra Funeral Home in Limpopo, Lisakhanya Prepaid Funeral in the Eastern Cape, Noah Funerals in the Eastern Cape, Blue Rain Funeral Services in Limpopo and Olitsoe Funeral Services in Gauteng.

Make Doubly Sure the Funeral Company is Registered

The secret to avoiding falling for these kinds of scamsters hook, line and sinker, according to Jacky Huma of Micro Insurance Supervision department is to ask for an FSP registration certificate from the provider.

This Financial Services Provider certificate should be current and valid too. Where there is any uncertainty, you can call the FSB on 012 428 8000 or 0800 20 20 87 for assistance or visit their website. You want to make absolutely sure that the company is indeed registered so that they can provide the particular services you want.

Don’t make the mistake of buying funeral cover from someone who appears to be registered to sell only retirement products but they end up selling you funeral products.

Get every Query Answered

When you’re investing your hard-earned money, you have every right to ask as many questions as you want. Licensed providers have an obligation to disclose information surrounding the funeral policy you’re buying, and even when you pay your premium in cash, they have to provide you with receipt payments.

Huma went on to say that it’s not as though unregistered funeral policy providers are deliberately scamming the public. Some like to apply the saying ‘ignorance is bliss’ to their funeral business, and they claim to be unaware of the legislative requirements to be registered. They like to be ignorant with regards to requiring underwriting from a registered long-term insurance company.

Unregistered? Nothing can be Guaranteed

Don’t be an unwary investor who is lured into a fake funeral policy.

You don’t want to get involved with a funeral company that isn’t registered. You can’t expect your funeral benefits to be guaranteed if the company isn’t registered. If however, the company is registered as a financial services provider, the benefits offered are guaranteed – if you pay your premiums on time every month.

Check the facts and do research on funeral companies before you sign up, and that applies to any insurance product you’re interested in.

The very reason you want a funeral policy is to allow your family to benefit after your death. But what about during life? You’re parting with a monthly premium each month, trusting that it’s building a decent funeral for you some day when, in fact, it’s contributing to making someone’s else’s life more luxurious.

Financial scams targeting those looking to buy a funeral policy is seriously prevalent today, and scamsters are rife in the 21st century.

It’s unbelievable that these sort of crimes are regarded as low-risk and this means the chances of you recouping your losses is slim.

The Financial Services Board has warned us about funeral companies who will do what it takes to extort money from you. They warn you to play your part by doing research and only dealing with reputable, registered companies.

Source: Fake Funeral Cover – Lost Money and Empty Promises