The surprising advantage of your group funeral benefit

Published on 1st November, 2022 at 01:17 pm

Reading time: 3 minutes

Knowing you’re covered in a time of need is the first step to securing your family’s financial future. Here’s how we’ve eased the burden.

Group Funeral Insurance is an insurance policy for which you pay a monthly premium. In exchange for these premiums, the insurer pays out a benefit amount to you (or your family members insured under the policy) to assist you and your loved ones with the costs associated with arranging a funeral. The cover is arranged by your employer as the policyholder for your and other employees’ benefit.

It provides for the payment of a lump sum amount when you and/or your spouse or child pass away to ensure that you or your surviving family members are not financially burdened by the cost of a funeral and other associated expenses.

What makes group funeral cover unique?

• There is no need for any medical examinations or underwriting before cover starts.
• The benefit is paid within 48 hours after the claim has been submitted and all the necessary claim documentation is received by the insurer.
• If you’ve been a member of the group funeral scheme for at least six months, you can continue the funeral cover for yourself, your spouse and your children under a new funeral policy with another insurer without being subject to any waiting period – if the policy is taken out within 31 days after your date of withdrawal from service.

Planning your funeral can be the best gift you can give your loved ones. Find out why, here.

Does a waiting period apply for natural causes of death?

Cover starts on your first day in the active service with your employer and continues until you reach the normal retirement age, or when you withdraw from service before then.

No waiting period applies to funeral claims caused by accidental death. For natural causes of death, no waiting period is usually applicable to funeral claims, unless you did not join the group funeral scheme when you first qualified for cover. If you joined at a later date following your date of employment, a waiting period of six months will apply to claims for natural causes of death only.

For each extended family member that is optionally insured (if applicable), a waiting period of six months will apply for natural causes of death only.

Read this to find out everything you need to know about funeral cover.

Why is it important to nominate a beneficiary for your funeral benefit?

The funeral benefit in respect of an insured family member (for example, your spouse or child) will be paid into your bank account. However, to assist your loved ones with the costs of arranging your funeral, the insurer needs to know who you nominated to receive the benefit in the event of your death.

If your employer does not have a valid funeral benefit nomination form on record at the time of your death, the insurer will have to pay the benefit to your estate, as required by law. This, unfortunately, means that your family will not have immediate access to the benefit payout to help them pay for your funeral costs, and this might cause them financial hardship in their time of need.

Other beneficiary nomination forms for your group life and retirement fund benefits cannot be used for payment of your group funeral benefit. It is therefore extremely important to contact your Human Resources department to assist you with the completion of a separate Funeral insurance Beneficiary Nomination Form. Remember to update your nominated beneficiary at least once a year, or when your circumstances change.

Reality Access for Sanlam Group Risk members also qualify for a burial repatriation and funeral support service. Find out about this here.