It is important to make your clients aware that some Underwriters treat suicide differently and, therefore, may not pay out a member’s Life Cover benefit if the death was caused by suicide.

Hollard: No suicide clause applies. Hollard will pay out a member’s death benefit per the payment instruction received from the policy holder, if the death was caused by suicide.

Capital Alliance: No suicide clause applies. Capital Alliance will pay out a member’s death benefit to the nominated beneficiary at any stage, if the death was caused by suicide.

Old Mutual: For schemes with less than 20 members at review, the death benefit will be declined if such death is directly or indirectly attributable to intentional self-inflicted injury or suicide during the 24 months immediately following the date on which the member first became an insured person. Old Mutual will backdate this exclusion if the scheme was insured with another underwriter prior to commencement with Old Mutual and given that the person was a member of the scheme at that time. The backdating will apply from the date he/she joined the scheme and to the cover the member enjoyed with the previous underwriter only. This clause does not apply for schemes with 20 or more members.

Sanlam: In the case of an employer who has less than 20 insured in its service, no life cover benefit will be payable if the death of the insured directly or indirectly is caused by or is traceable to suicide or attempted suicide which occurs within 24 months following the date of inception. No suicide clause applies for groups with more than 20 members, Sanlam will pay out a member’s death benefit at any stage from the date of inception.

Should you require more information, please contact your Associate or the office.

Thank you and regards,
The TSA Team

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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.