In an exciting collaboration between Minet Malawi, Britam, and The Daily Times - Malawi's leading newspaper - we are thrilled to introduce a groundbreaking initiative that will redefine your Wednesdays. Welcome to the Insurance Insights Column – a weekly rendezvous with the world of insurance and contemporary issues that matter. Every article aims to illuminate the intricate landscape of insurance products and relevant topics that impact us all. The articles are educative at all levels, catering to both practitioners and non-practitioners.
As published in The Daily Times (Malawi) on October 9th, 2024
You have heard it before that there are two things that are inescapable in life - tax and death. Death and tax are popularly referred to as certainties of life. You and I pay Caesar - tax man - what is due to him and no man is immortal. Man is a perishable specie. Do not ask me how babies pay taxes - I leave this to the tax man to elucidate.
Insurance is for events that are uncertain in occurrence. Insurance caters for accidents. If death is a certainty, why should it be insured any way? You ask. I am glad you asked this question. Let me explain. It is not death that is insured, but its timing. You and I are certain that one day we will die. No question about it. We all know about this fact. However, we are uncertain about the actual day or nature of our death. This qualifies death as an insurable event. Here is the thing - whether one’s remains are interred into the ground at a cemetery [in town or village] or charred into ashes in an urn at a crematory, the process requires the bereaved to incur some expenses to funeral service providers. Funeral insurance caters for such inescapable incidentals.
Funeral insurance originated from ancient Rome. Romans used to form societies. Each member contributed to a central fund. In this way, members had their burial expenses met by the fund.
Modern funeral insurance is a derivative of the Roman funeral arrangement. It pays a stated amount to one’s legal representatives or those left behind to cater for one’s funeral expenses, the costs of which include, purchase of coffin, food for the bereaved, transport and other related costs. This means in essence entails that the insured value ought to be a reasonable one.
Funeral insurance is not a benefit policy. It neither takes into account the plight of one’s children, spouse and other dependents nor compensates one after suffering a fatal injury.
The policy pays for loss of life from whatsoever cause except from war or warlike events and suicide. If you hang yourself with the intention of your next of kin to collect the fortune, your representative will be in for a shock. Death due to suicide whether felonious or not, is an excluded peril.
Not everybody qualifies for funeral insurance. Age is a key determinant. If one is over or under the stated age limits, one is not covered. The bottom limit under a standard funeral policy is six years and the upper limit is seventy years. Funeral insurers grant you cover from the year you disown a napkin and withdraw it the moment you start looking for a walking stick!
To avoid claiming on a policy where the insured life is already dead, funeral insurers put a cooling period within which death should not occur after taking cover. This precludes cases where individuals would insure a family member who is on the verge of death or has already died. Death of the insured person should not occur within thirty days of inception of the policy. This does not apply in respect of death due to accident.
In the event of you disappearing totally for a reasonable period of time, seven years in case of Malawi laws, one’s funeral insurer makes the claim payable on the understanding that if one is subsequently found to be living, the amount paid is refunded to the insurer.
Just like in other insurances, you are expected to notify your insurer about the claim as soon as possible to avoid loss of evidence. Early claim notification accords insurers opportunity to verify the authenticity of the operation of the event [Do not be scared. There will be no visit by insurers to the cemetery to exhume the body]
Nevertheless, the insurer requires all certificates of information and evidence of death. I have heard about people forging and using or presenting fake M.S.C.E [form four school certificate] to prospective employers or indeed pretending to have one. Oups! What can stop man from faking death? Talk to us. We are here to guide and serve you.
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