What is Group Funeral Insurance?This cover is under compulsory schemes which provides a lump sum benefit payable upon the death of the member (account holder), spouse and/or children (up to 6) and parents to meet funeral and other expenses associated with a death in the family.
The benefit is payable within 24 hours to allow the family to use the benefit for the funeral. The policy is designed to meet funeral and other associated expenses and can be extended to other family members. Speak to a financial adviser to outline how the benefit works for you.
The benefit consists of small fixed monetary insured amounts, which apply to all Primary Insured Persons (account holders) and Insured Persons in the group, subject to maximum benefits set by the policyholder. There are four different categories each with commensurate premium rates and benefits, which the bank can choose: primary insured person only, member and children, member and spouse, member, spouse and children.
A clear definition of eligibility to join the plan must exist i.e. maximum age is 65. If this compulsory requirement is not met in every case, the policyholder could be held liable for payment of the Funeral Cover benefit for any person who was eligible for membership but was not in fact a member of the Plan. Persons who are not eligible to join should not be admitted to the Plan. An employee/member will participate in the Plan from the date of commencement of the Plan.
Upon admission of a valid claim Old Mutual will pay the Funeral Benefit in a lump sum to the beneficiary within 24 hours.
- Member/Account holder is the “principal member” belonging to the scheme
- Insured Persons are the other members of the family e.g. spouse and children that may be insured under the Funeral Cover Contract in additional to the Primary Insured Person
- Primary Insured Person may be a legal, or common law, spouse (subject to a maximum of 2 per Primary Insured Person). Insured Child must be an unmarried dependent child and under the age of 21, apart from normal concession for full-time students (who may be insured up to 25 years old)
- A physically or mentally incapacitated child may be insured to any age provided that they remain continuously dependent on the Primary Insured Person
- Stepchildren, adopted, legitimate or illegitimate children are insured