16 Mar Nominating your dependents for unapproved group life and funeral benefits
Following changes to the Insurance Act, the definition of ‘beneficiary’ has been amended and employees may no longer determine beneficiaries in the absence of a Nomination of Beneficiary Form for Unapproved Group Life and Funeral Benefits.
It is therefore important for members to complete a Nomination of Beneficiary form to ensure that the benefits are paid to the correct beneficiaries. In the absence of the Nomination of Beneficiary form, all unapproved Group Life and/or Funeral benefits will be paid directly to the member’s estate. This may create financial difficulties for the family who may be expecting a funeral benefit to be paid out within 24 to 48 hours.
You should review and update your Nomination of Beneficiary Form at least once a year so that beneficiaries can be easily traced and any changes are accurately reflected. Apart from the change of contact details of a beneficiary, circumstances such as the death of a beneficiary, divorce or birth of a child might also influence you to change your beneficiaries. Or, you might want to allocate a portion of your benefits to a new party.
The Nomination of Beneficiary Form does not expire and in the event of a claim, the latest beneficiaries listed will be recognised.
Avoid heartache, frustration, and conflict for those that you leave behind by making sure that your Nomination of Beneficiary Form is up to date.
Head of New Business Development