Ready to have that insurance talk with your family but not sure where to begin? We’ve got you! These are the 10 most important things your family needs to know about your insurance policy.
1. You have an insurance policy or policies
The first thing to tell your family is that you have an insurance policy, and the type of cover it offers. For example, you have a life policy that pays out a sum assured to a beneficiary on your death, or the death of the life assured.
2. Who your life insurer is and how to contact them
This may matter more than you think! When beneficiaries need to claim they often cannot find the original policy documents, and are unsure who the life insurer is. This can result in a delayed claim, and if the delay is too long a claim may be declined. Telling your family who your insurer is and where to find their contact details means they can contact the insurer when you pass and claim in good time.
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3. Where the policy documents are
This is always good to know, even if you keep all your documents electronically. Tell your family where your insurance documents are kept if they are in paper format, such as in a file in the bedroom cupboard, and how they can be accessed if they are kept digitally, with instructions left with your will.
Top tip: Your family will also need to know where your ID document is as certified copies are needed for claims and official documents such as the death notice and death certificate.
4. What your policy covers
Your family need to know these details for your 1Life Insurance policies.
Life cover policies:
- Who is the life assured
- The sum assured amount, for example R1 million
- Who is the beneficiary
Funeral cover policies:
- Who is the principal member - mostly likely yourself.
- Who are the additional family members covered on the policy
- The sum assured amount for each member
- Who is the beneficiary, who will claim if the principal member passes
Top tip: Keep your family informed of any changes to your policy, such as a change in the sum assured or addition of a member to a funeral policy.
5. How to claim
Very important! You want your beneficiary or beneficiaries to be able to claim so that the policy pay-out can be made quickly. Share your insurer’s how to claim details to help them with the claims process.
You can also share ideas with your beneficiary on how to spend the policy pay-out so they can maintain their standard of living and continue building generational wealth after your passing. You can read more on how to spend a pay-out in this blog.
6. Policy waiting periods and exclusions
Family members and beneficiaries become frustrated when a claim is declined because of a waiting period or exclusion. Check your policy schedule and let your family know if there are any waiting periods or exclusions that apply. For example, life policies have a 2-year waiting period for claims where the cause of death is suicide.
You can find the details of waiting periods and exclusions on your policy schedule and in the 1Life Insurance policy book, or visit the online policyholder service portal or WhatsApp service centre to view your policy details.
7. Premium payment details
Let your family know how much the premium is and how it is paid. They can stop these payments if you pass, or instruct the executor of the estate to stop payments.
8. Premium waivers on life policies
Premiums waivers are when premiums don’t have to be paid but the cover continues. For example, if you have disability cover on your life policy you may also have a premium waiver that ensures you don’t have to pay the life policy premiums for a certain time if you claim for a disability. Share these details, and be sure you know when premium waivers begin and end!
9. Premium waiver and continuation option on funeral policies
1Life Insurance Funeral Cover policies have a premium waiver, which means the policy can continue and additional members enjoy cover, without having to pay premiums for a certain period of time.
In addition, there is a continuation option that allows the first spouse of the principal member, or eldest additional family member if there is no first spouse, to take over the policy as principal member, when the premium waiver period comes to an end. Which means your family won’t have to take out a new policy with new waiting periods.
10. Additional benefits
You and your family enjoy good value for money with additional benefits from 1Life Insurance. These include:
Life policies: Pay now death benefit, an accelerated benefit that pays R50 000 on the death of the life assured to cover funeral costs.
Funeral policies: A R6 000 grocery benefit to help your family cover their grocery bills after your passing, and a headstone memorial to the value of R5 000 on the one-year anniversary of your passing.
All 1Life Insurance policies: Access to Truth About Money benefits including a debt management service, wills & estate benefit, legal assistance benefit and free financial education courses that you and your family can take at any time.
Read more about 1Life Insurance policy benefits in this blog.
Make sure your loved ones benefit from your financial plans
When your family knows you have cover and how to claim, they can be assured they are taken care of, that they will have financial security if you pass, and that they can continue building and preserving the generational wealth you are creating.