Funeral Beneficiary Nomination Form
URGENT NOTICE
Dear Participating Employer
Funeral Policies and the importance of completing a Beneficiary Nomination Form
The purpose of having funeral cover is to pay for funeral and other once-off final expenses, so that the people that are left behind are not left with huge bills. When a member dies, the policy will pay a single lump sum to contribute towards their funeral expenses. This will be paid to the member’s nominated beneficiary.
The employer provides funeral cover to its group of employees, which is an affordable way of ensuring that employees family members will not be financially stressed if the member passes away. In the past, the policy proceeds could be paid to the employer and the employer was able to use its discretion to direct to whom the policy proceeds should be paid. This was especially helpful where a member did not complete a nomination form.
In terms of current legislation, the employer no longer has the discretion to determine the beneficiaries of members funeral cover and members are encouraged to make sure that they complete the relevant nomination of beneficiary form to indicate to which beneficiary the funeral benefit proceeds should be paid, in the event of the member’s death.
If members do not complete a nomination of beneficiary form, the funeral benefit will be paid to their estate. This will create further stress for their family members who might not have any funds available to pay for their funeral costs.
It is also important that members update their nomination of beneficiary form at important life events, such as marriage, divorce, or death of a beneficiary, because neither the insurer nor the employer will have the discretion to pay somebody else other than the person/s nominated by the member.
Please ensure that your employees have completed the funeral benefit nomination of beneficiary form and that they keep this up to date.
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