Online Reporter
When Mr Chigege lost his sister after a long illness, the family thought at least the financial burden would be lighter because she had a funeral policy.
They gathered in grief but also with relief, believing the insurer would take care of the coffin, transport, and funeral expenses.
But when they approached the insurer, they were told her policy had lapsed. She had last paid her premiums nine months ago.
Because her policy was more than five years old, the six months grace period had already expired. The shock was unbearable.
Instead of support, the family had to scramble to raise money, borrowing from neighbours and well-wishers to give her a decent send-off.
This fictional story reflects a real and painful truth: a funeral assurance policy is only effective if premiums are paid on time.
A policyholder can faithfully contribute for years, but if premiums fall into arrears and the policy lapses, their loved ones may find themselves unprotected at the very moment they most need assistance.
Funeral assurance is unique in that it deals with one of life’s certainties—death. Families sign up for these policies to ensure dignity and reduce the financial stress of funerals.
But the benefits only materialise if the contract remains in force. Insurers can only honour claims if policyholders honour their side of the contract by paying premiums consistently and on time.
Fortunately, the law recognises that life can be unpredictable and that sometimes people fall behind.
That is why the Insurance Act provides grace periods.
For policies that have been in existence for five years or more, there is typically a grace period, depending on the length the policy has been in existence.
This means that if the insured person dies during this time, the family is still covered, provided they pay the outstanding premiums.
This is an important consumer protection measure, but it should not be misunderstood as an excuse to delay.
The grace period is a safety net, not a payment holiday. Once it lapses, the policy is no longer valid, and the insurer it is within its rights to reject the claim.
To avoid such disappointments, policyholders should explore payment methods that reduce the risk of arrears such as stop-order payment facilities.
For those in informal employment, some insurers offer mobile money platforms for premium deductions. The key is to choose a payment method that is reliable and sustainable for your circumstances.
Equally important is communication with your insurer.
If you face financial challenges that may affect your ability to pay premiums on time, do not wait until the policy lapses.
Engage your insurer immediately, some may be willing to work out flexible arrangements if they are informed early.
Silence and inaction puts families at risk of losing coverage.
It is also vital to remember that paying premiums on time is not just about funeral assurance.
The principle applies across all insurance products, whether it’s motor, life or property insurance.
Once a policy lapses due to non-payment, the insurer has no legal obligation to honour claims.
In funeral assurance, however, the consequences are often more visible and painful because death is inevitable and usually unexpected.
A lapsed funeral policy leaves families scrambling to cover costs that can run into thousands of dollars at the worst possible time.
For many Zimbabwean families, this can mean selling livestock, borrowing money, or cutting corners on a loved one’s dignity.
The Insurance and Pensions Commission (IPEC) continues to urge consumers to take premium payments seriously.
A funeral policy is a promise, one that only holds if both sides keep their commitments.
Policyholders must pay premiums, and insurers must deliver benefits when the time comes.
To strengthen this relationship, IPEC also reminds consumers to always deal with licensed insurers and agents. Licensed entities are accountable to the regulator and required to honour their contracts when premiums are paid.
The lesson is clear: a policy is only as good as its premiums.
No matter how faithfully you contribute for years, a lapse caused by missed payments can undo everything.
Families must treat premiums as a non-negotiable obligation, just like school fees or utility bills. Setting reminders, using stop-orders, or coordinating as a family to share the responsibility can ensure no payment is ever missed.
Mr Chigege’s story, though fictional, reminds us how quickly years of faithful contributions can be undone.
The pain of losing a loved one should never be compounded by the loss of funeral cover.
Timely premium payments are the bridge between grief and dignity, between despair and relief. A funeral policy is an act of love, protecting your family from financial stress when you are gone.
But love, like insurance, requires commitment.
About IPEC
The Insurance and Pensions Commission (IPEC) is a statutory body established in terms of the Insurance and Pensions Commission Act [Chapter 24:21] to regulate the insurance and pensions industry for the protection of policyholders and pension scheme members.
For feedback or enquiries, please contact us at: [email protected].
