What happens to your group risk benefits if you leave your employer
Published on 4th November, 2021 at 08:59 am
Group risk benefits offer an affordable way for employees to be covered for unexpected situations at an affordable rate. But it’s important to know what happens to this cover when you leave your employer.
When you as an employee leave the services of your employer, all your group insurance cover ceases. This is because the group policy providing the group risk benefits is between Sanlam Corporate: Group Risk (SGR) and the fund and/or employer.
The good news is that Sanlam offers a conversion option to accommodate employees who’d like to convert their group cover into individual insurance. This option applies to life insurance benefits (own life or spouse), disability insurance (lump sum or monthly payments), severe or critical Illness insurance benefits, and funeral benefits.
It is valid for 60 days from the date of withdrawal/exit from a fund/employer. If you, as an insured member, would like to use this option, you will need to apply for it within 60 days of termination of employment by advising Sanlam of your intention to convert, and submitting relevant documentation within that period.
Group life, disability, severe illness or critical illness insurance policy members
If your fund or employer’s policy has a conversion option to accommodate your wish to convert and continue your group cover on an individual basis,
- your cover amount will not exceed the group cover that was granted under the Sanlam group risk scheme, or it may be less than the total cover you had under the group policy;
- if you choose the conversion option, and the same level of cover (or less) is converted, you don’t have to provide medical evidence of good health/insurability (eg assessment of your health condition via physical screening or medical exam), an HIV test or cotinine test for non-smokers; and
- the converted cover and premium (ie individual-based premium) will be subject to the conditions applicable to Sanlam Life Insurance Limited policies.
Sanlam may, however, ask for information to establish the rating factor or premium rates. For example, they may call for a body mass index (BMI) measurement, to be completed by a nurse, in addition to information about hazardous activities you may participate in.
Group funeral insurance policy members
If you as an insured member (ie an individual employee of a scheme and/or member of a fund) have been underwritten by SGR for a minimum period of six months, and are a principal member,
- you have the option to take up individual funeral insurance for yourself, your spouse and children (and extended family members, if applicable) without being subjected to any waiting periods;
- the converted cover is limited to the funeral insurance amount insured under your employer’s policy and is provided at individual premiums applicable at the date of conversion on each individual; and
- the funeral insurance will be subject to the terms and conditions applicable to Sanlam Developing Markets Ltd policies.
How do I use the conversion option?
You, as the insured member, can only use the conversion option if you are a South African citizen or permanent resident (ie holder of a RSA ID document) and are not a contract worker. For more information, please refer the application process.
Converting group life, disability, severe or critical illness insurance
You can obtain an official quote from Sanlam for the conversion by providing the following information:
- your ID number;
- your last day of employment (ie confirmation of exit date); and
- your reason for leaving your employer’s service (resignation, retirement, retrenchment etc).
Converting group funeral insurance
Ask your employer’s HR representative to confirm the following information via email to email@example.com:
- your contact details (ie email address and mobile number);
- your last day of employment (ie confirmation of exit date);
- your benefit statement confirming your existing group funeral benefit applicable, and all the family members that are covered on the group policy; and
- the most recent completed HR application form on record, used to register immediate and extended family members with your employer (as confirmation that they were covered for more than six months).
Sanlam Life Insurance Limited is a Licensed Financial Services Provider.
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