How does transferring a funeral insurance policy work?
Choosing the right funeral insurance is very important if you want to make sure it fits your situation, budget and preferences. Often people choose to transfer funeral insurance because it brings some interesting benefits. The flip side of the coin, in turn, is that there are also disadvantages.
What is funeral insurance underwriting, how does the process work and what do you best pay attention to when taking this step? All of these questions are answered here so you can make an informed decision.
Why should you refinance funeral insurance?
Changing a funeral insurance policy is interesting if the conditions of your current insurer or insurance no longer fit your own preferences, budget and situation. Switching a funeral insurance policy is only interesting if there is a situation in which that insurance is of little use to you.
In most cases, this has to do with the policy conditions. These can change, making it suddenly no longer interesting to stay with your insurer. On the other hand, it can also happen that your personal situation or wishes regarding the funeral insurance and your funeral itself change. In this case, switching or switching is also a good idea.
How does transferring a funeral insurance policy work?
Transferring funeral insurance actually means switching. That means canceling the insurance contract with your current insurer and signing a new contract with another insurer. In that sense, it's a bit like changing energy supplier or telecom company.
Before you can transfer your current funeral insurance, however, you have to buy it out. Then, they are going to put the value of your previous insurance into the new one as soon as it becomes active. This involves certain switching fees, so be sure to keep that in mind if you choose to transfer funeral insurance.
Another option, besides switching your funeral insurance, is to simply top up your insurance. This is especially a solution if you think your current insurance will be insufficient to fund your funeral later. With a good additional insurance policy, you will cover additional costs involved.
What are the advantages and disadvantages of switching funeral insurance?
What exactly are the advantages and disadvantages of switching funeral insurance? Here is a clear overview:
The benefits
- You easily choose an insurance contract that suits you
First, of course, switching a funeral insurance policy gives you the freedom to take out another policy. For example, if you have always had Capital Insurance, but suddenly change your mind and want to support your next of kin with a package of services and products on a practical level as well, you can easily switch to Natura Insurance.
- You change insurers without any problems
In addition, it is also possible to transfer your funeral insurance to another insurer. This can be interesting if you are no longer satisfied with the terms and conditions of the insurer you have or for some other reason prefer a new insurer.
- You can take part of the insured value
People often think that switching a funeral insurance policy only involves costs, but that is not true. In most cases, it is indeed possible to take some of the insured value with you to your new insurance policy or insurer.
The disadvantages
- You pay switching fees
Switching a funeral insurance policy involves costs anyway, as insurers charge switching fees. So when considering choosing another insurer, it is best to take this into account.
- You will likely pay a higher premium
In addition, when you switch a funeral insurance policy, you will usually also pay a bit more premium. This is due to the fact that the amount of that premium is based on the age of the policyholder.
The older you are, the more you pay monthly. If you have funeral insurance with an insurer at 18, but want to switch at 30, your new insurer will determine your premium based on your current age. This is another additional cost to keep in mind when considering a switch!