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Did you know there are billions of Rands in unclaimed benefits in South Africa from a range of policies, including life insurance? That means there is money that is due to a beneficiary, but it is never paid because the beneficiary doesn’t know they can claim, or how to claim. Don’t let that happen to your family.
Insurance is there to ease financial stress when a breadwinner becomes ill or passes on, so it is really important that you and your family know how to claim.
1. Tell your family and beneficiaries what policies you have and what they cover
Unfortunately, many people pass on and leave relatives and friends to sort through paperwork and computer files to finalise their estates. Tell your family and policy beneficiaries what policies you have such as:
- Group benefits with employer
- Pension funds and retirement annuities
- Medical cover
Make sure your family members know what each policy covers, for instance, death or a critical illness, so that they know when to claim.
Ideally, your family should only have to claim on a death or funeral policy. However, if you are seriously ill or unconscious you may not be able to claim on a disability or dread disease policy yourself, in which case your family will have to claim, so include these in your discussion.
Top tip: If there are any exclusions or waiting periods on your policy advise your family of these. You can find these details on your policy schedule.
2. Make sure your family, beneficiaries, advisor or attorney know where your policies are
Is your policy in paper form or saved on a computer or in the cloud?
If it is on paper let your family know where it is and keep it in the same place or tell them if you move it.
If your document is stored on a digital file, make sure someone can access the file in the event of your passing or becoming seriously ill or disabled.
These documents are important because they show exactly what is covered, who the beneficiaries are and the details on where to claim.
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Top tip: Complete a claims instruction sheet for each policy
This is like a cheat sheet for each policy so your family will have the policy number, contact details for the 1Life claims department and other important policy details at hand. This one pager is a great help when your relatives are struggling to come to terms with your passing or illness and have to deal with admin matters and paperwork.
3. Walk them through the claims process
Firstly, make sure the right person claims – this can save time. Here’s who should claim and contact our claims department:
- Life policy: The beneficiaries named in the policy
- Funeral policy: The beneficiary named if the principal member passes on, or the principal member if an additional member passes.
- Disability, dread disease and Expense Protector policies: The life assured or a family member if the life assured is unable to.
Our 1Life claims team will assist your family members with your claim, but you can prepare some of the documents we will need such as the policy number and original or certified copies of the life assured’s ID. If the claim is due to be paid to a beneficiary, we will also need their bank account and ID details.
When it comes to other documents such as doctors’ and specialists’ reports, each claim may have different requirements, so your family members should call us first to find out which documents we require. We try to keep the paperwork to a minimum and pay claims as quickly as we can.
4. Tell your family why you took the policy and how you would like the funds from a claim to be spent
You may take a life policy so that your bond will be paid off and your children’s education paid, or you may want your policy pay-out to be invested for an income. We can’t rule from the grave, but it is good for your family and relatives to know your wishes. You can share these in a family get together or make a list of how you would like your family to use their claim pay-out. You may also wish to specify how a funeral policy pay-out is to be spent so your family doesn’t overspend on your service.
5. Keep your family updated of any changes to your policy
Your cover may increase, you may add or remove a beneficiary or take out an additional benefit such as disability. Keep your family and beneficiaries updated so they know who can claim, and under what circumstances.
Make claiming easy
Your cover is a legacy. Make sure it is a legacy that is easy to access and easy to manage by keeping your family and beneficiaries in the know. Check with your beneficiaries and family once a year and go through the checklist above so that when the time comes, they will know what to do. That way you know your policy will help your loved ones when the most need it.
We answer your questions
What happens if my family members don't know about my life insurance policy?
If your loved ones don’t know you have a policy, they can’t claim against it. This means they’ll pay for the funeral themselves, often going into debt to do so. Always tell your loved ones about your policy to avoid financial stress during a difficult time.
How do I make sure my family can access my policy documents?
Store your policy documents somewhere safe and secure. Most importantly, tell your loved ones where to find them. Easy access to these documents ensures a smooth claims process and prevents unnecessary delays when arranging a beautiful send-off for a family member.
What information do my family members need to claim?
They will need the following information:
- The policy number and policy document
- The ID numbers of the main member, who has passed away as well as the ID numbers of the beneficiaries
- The funeral insurance provider’s name
- And a contact number for their claims department
How do I prepare my family for the claims process?
Show them where the policy documents are kept and give them the information listed above. Then explain the claims process to them. This process should be explained on the provider’s website or you can contact their claims department.