Converting to an Individual Life Policy

A conversion option is a rider benefit that, if selected, allows a member to have individual insurance at withdrawal or retirement on group life, lump sum disability, disability income as well as trauma cover. All four of our insurers offer this benefit.

Members have 60 days from date of withdrawal to exercise the conversion options (except for Hollard where the member has 30 days).

In some instances conversion options are not available – as below:

Sanlam
• If the employer’s participation has been terminated.
• When the business closes or is liquidated.
• During a reconstruction of the business in a similar or different form.
• In certain circumstances during a retrenchment exercise.
• Should the business be transferred or amalgamated with any other business, company or organisation.
• The conversion option is not offered to contract workers.

Capital Alliance
• In respect of an insured when the Employer is transferring the members of the scheme to another arrangement which provides the same benefits.
• This option is available to contract workers if selected and costed for at inception.

Hollard
• If on leaving the employ of the employer, a member starts working for a new employer that offers similar benefits to those offered under the policy.
• Retires from employment because of ill-health.
• Stops working because of disability.
• If the individual is dismissed from employment because of fraud, theft, dishonesty or misconduct or is retrenched.

Old Mutual
• If the entire scheme is terminated with Old Mutual.
• The conversion option is not offered to contract workers.

TSA doesn’t offer an individual life quoting service. If you don’t have the necessary life contract then please let us know and we will be able to refer you to someone who can assist.

If you need any more information we are just a call away on 031 561 1044.

Thank you and regards,
The TSA Team

You’ll find all back issues of TSA Connect by visiting our blog.

All information provided is intended to inform and explain, but please remember to always check the current terms on policies when considering options and advising clients.

Social Media Company Social Media Consultant