A Guide to Funeral Policies in Zimbabwe

Planning for a funeral is one of the most difficult but important financial decisions a family can make. In Zimbabwe, a funeral policy is the most common way to prepare for these costs. This guide will walk you through what a funeral policy is, what to look for when choosing one, and how the claims process generally works.

Part 1: What is a Funeral Policy?

A funeral policy is a simple form of life insurance. You (the policyholder) pay a regular fee, called a **premium**, to an insurance company. In return, the company promises to provide a fixed sum of money or a set of funeral services when a person covered by the policy passes away.

Cash Payout vs. Service-Based Plans

It's important to understand the two main types of policies:

• Cash Payout Plans: When a claim is made, the insurer pays out a lump sum of cash to the beneficiaries. This provides flexibility, allowing the family to manage the funeral expenses and arrangements themselves.
• Service-Based Plans: With this type of plan, the insurer (or their partner funeral parlour) provides the actual funeral services. This can include the casket, hearse, mortuary services, and sometimes even groceries. This can reduce the logistical stress on the family, but offers less flexibility.

Part 2: What to Look for When Choosing a Policy

Choosing the right policy is a personal decision. Here are the key factors you should consider and ask about before signing up.

1. Coverage Amount (Sum Assured): This is the total value the policy will pay out. Is it enough to cover the type of funeral you envision? Be realistic about costs.
2. Premiums: How much is the monthly payment? Is it affordable for you in the long term? Also, ask if premiums increase as you get older.
3. Waiting Periods: This is crucial. Most policies have a waiting period (e.g., 3-6 months) for death by natural causes. This means if a person passes away from illness during this period, the policy will not pay out. However, accidental death is usually covered immediately.
4. Currency (USD vs. ZWL): In the current economic climate, a USD-denominated policy is generally safer as it protects the value of your payout against inflation. Be very clear about the currency of both your premiums and your final payout.
5. Number of Dependents: How many family members can you cover under one policy? This often includes your spouse, children, and sometimes parents or extended family. Adding more people will increase the premium.
6. Provider's Reputation: How long has the company been in business? Do they have a good reputation for paying out claims without hassle? Ask around and check reviews.

Part 3: The Claims Process

When the time comes, the process for making a claim needs to be as smooth as possible. While it varies slightly between providers, the general steps are as follows:

1. Notify the Insurer Immediately: The family should contact the insurance provider as soon as possible after a death has occurred.
2. Submit Required Documents: You will need to provide official documentation to process the claim. This always includes:
   • The official **Death Certificate**.
   • The ID of the deceased and the beneficiary.
   • A completed claim form.
3. Verification and Payout: The insurer will verify the documents and the policy's status. Once approved, they will either release the cash payment to the beneficiary or begin arranging the funeral services, depending on the type of plan.