What you need to know about life insurance beneficiaries?
If you’ve taken out life cover with Standard Bank’s Direct Life Insurance Services or considered one, you’ll be asked to nominate a beneficiary (the person or people who will receive the lump sum pay-out when you pass away). Here’s a few frequently asked questions about this important process.
Who can I nominate as my beneficiary?
You can choose anyone to be your beneficiary. When you make this decision, you may want to consider who will most likely cover your funeral costs, the person or people who rely on you financially, or any family member or loved one you’d want to benefit.
Can I have more than one beneficiary?
Yes, you can choose an unlimited number of beneficiaries and you can specify the percentage that each of them will be entitled to when the claim is paid out.
Can I change my list of beneficiaries?
Yes, as the policy holder you can add or remove beneficiaries whenever you want to. We suggest you review your list of beneficiaries annually to keep it up to date.
Can I nominate a minor as a beneficiary?
Yes, you can nominate a minor as your beneficiary. If your beneficiary is still a minor when the claim is finalised, the benefit will be paid out according to instructions issued by the beneficiary’s guardian (i.e., the pay-out might be transferred into a trust account or the minor’s bank account on the orders of the guardian).
What happens if my beneficiary dies before me?
You should contact us to update your beneficiary list. If one or more of your beneficiaries dies before you and you don’t update your beneficiaries list, their portion of your life insurance benefit will be paid into your estate when you pass away. If all your beneficiaries die at the same time as you, the life insurance benefit will go to your estate.
What happens if I don’t nominate a beneficiary?
If you don’t nominate a beneficiary on your life insurance policy, the benefit will be paid into your estate when you die.
Thinking about getting covered?
Life Cover from Standard Bank’s Direct Life Insurance Services offers you peace of mind by paying out a cash lump sum to your loved ones when you’re gone. Your beneficiaries can use the pay-out to cover day-to-day living expenses and monthly bills, to pay for your children’s education, clear outstanding debts or other expenses. Taking out life cover is one of the most important financial decisions you can make and it makes sense to choose the bank trusted by millions of South Africans for over 150 years. Get a no obligation quote today or ask a customer service agent to call you back.