Sanlam – Payment of the Death Benefit options

Sanlam has been advised by their legal department that the current policy wording with regards to the payment of the death benefit may lead to disputes as the decision by the Employer might not be consistent with every claim. In order to prevent such disputes, the Employer must choose only one of the following two options that will apply to every claim going forward:

  • Option 1 (will be the default option) : Claims will be paid to the Insured’s Dependents and/or Nominees as solely decided by the Employer and in proportions deemed equitable by the Employer.
  • Option 2 : Claims will be paid to the Insured’s nominees designated on a prescribed beneficiary nomination form.

For new business – this is now a part of the Sanlam Acceptance Form (effective 1 February 2019) and will need to be indicated by the authorised signatory at the company. It will be confirmed as part of the employer’s Certificate of Participation.

For existing business – email communication and an addendum is being sent to all TSA brokers with existing Sanlam business, so that the client may indicate their choice, during a limited window period (January 2019 to March 2019). If no feedback is received, during this period, the default option will apply (in other words the benefit will be payable in accordance with the Employer’s discretion).

Please do not hesitate to contact your TSA Associate or our office if you have any questions relating to the change.

Kind regards,
The TSA Team

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

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

(Vol. 8 Issue 2)

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