Important: Benefit Payments made to the Estate and Advancing Payments

With the new regulations in place, we have updated our beneficiary nominations forms and they have been approved by the 4 insurers that we work with. The nomination form makes accommodation for the Life Assurance benefit as well as the Funeral benefit, and can be found here. 

It is really important that all employees complete the form for both the death and funeral benefit (if applicable). If there isn’t a beneficiary nomination form, the benefit will be paid to the estate.

The advancing of any benefits by an employer to beneficiaries is no longer accommodated and should be avoided. The insurers cannot reimburse an employer as “employer” does not meet the definition of a beneficiary.

The sooner this can be communicated to employers and members the better, however, each insurer has given clients the periods of grace below to comply:

Capital Alliance: Up until 31 October 2021
Sanlam: Up until 30 November 2021
Old Mutual: Up until clients receive an endorsement on their policy, which are in the process of being sent out currently.
Hollard: Only if a prior arrangement has been made will they consider reimbursing an employer, or if they have done so in the past for that specific employer. Up until 31 March 2022.

To assist – should a claim need to be paid to the estate – we have a guideline that you can use to set up an estate and it can be accessed here. Please let us know if you have any other questions and we will be happy to help.

Thank you and regards,
The TSA Team
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