Many families already have an older funeral or burial insurance policy – papers inherited from a grandparent, a decades-old contract. The good news: a review is quick, and the outcome is often that everything is in order.
- The four points: what the sum insured is worth today, the rules for the first years (have they already elapsed), when premium payments end, and the beneficiary.
- The great value of an old policy is that the waiting period and the graded years are long behind it – that's not something to give up lightly.
- There are three possible outcomes: everything is in order; a small adjustment is needed; or a supplementary policy or restructuring is worth considering.
Why is an old policy valuable?
Because time has worked in its favour: the waiting period and the graded first years are long since over, and cover is now full. With a new policy, that whole process would start again. That's why the basic rule of a review is this: cancelling an old policy is only worth doing for a very good reason – the most common good outcome is to keep it, perhaps with an adjustment or a supplement.
The four points to check
Sum insured: what the sum fixed long ago is worth today against the real cost of a farewell – this is where the most common shortfall shows up. Indexation: whether there has been any indexation, and if it's been declined year after year, where the sum stands now. Premium payments: how much longer they need to be paid, and what happens afterwards. Beneficiary: whether the person named is still alive, and whether the designation is still current – on decades-old policies, this is most often the point that's out of date.
The three outcomes
First: everything is in order – in that case, my job is simply to say so, and we close the matter on a good note. Second: a small adjustment is needed – typically updating the beneficiary or raising the sum through indexation; both can be handled within the existing policy. Third: the old sum has fallen far behind reality, and can't be raised enough within the product itself – in that case, a supplementary second policy for the difference may be worth considering, while keeping the old one in place. Cancelling and starting over is the rarest good answer.
What should you bring to the review?
The policy document or the policy number, the most recent anniversary notice (if you have it), and your questions. Missing papers aren't an obstacle either: as the policyholder, you can request the details of your own policy from the insurer. The review is free of charge and comes with no obligation – and the result is always an honest statement about what's worth doing. You can book an appointment here.
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