Spouse’s life insurance (Spouse’s cover) is one of the benefits that a participating employer may offer to its members as part of their fund benefits. Spouse’s cover provides a lump sum to the member on the death of their spouse.
Spouse’s cover ceases at the earlier of the member’s Normal Retirement Age or the member’s attainment of age 65. The participating employer can elect to continue Spouse’s cover until age 70 for members who remain in the active service of the employer after their normal retirement age. In this case Spouse’s cover will be compulsory for those members who remain active in service after normal retirement age, up to age 70. Spouse’s cover also ceases –
- when the spouse attains the age of 70;
- on the death of the member;
- on the exit of the member from the Fund;
- in the event of the divorce of the member and their spouse.
To administer the Spouse’s cover scheme, it is critical to have the most updated information about members’ spouses. At onboarding of all new schemes, the participating employers will be required to provide the correct current information about their members’ spouses.
It is crucial that any changes to a member’s marital status, such as a marriage, divorce, or the addition of a cohabiting spouse are promptly communicated to Sanlam. Cohabiting spouses’ cover will only commence once the spouse is medically approved. Failure to provide the correct information can result in significant risks, including delays or rejection of claims, especially if the marital status on record is not consistent with the actual status at the time of the claim.
Additionally, Sanlam will rely on the employer’s notification if a spouse no longer qualifies for coverage or if they should be removed from premium collection. This is important to ensure that the insurance schedule reflects the correct individuals at all times, and that premiums are only collected for those eligible for coverage.
As part of conducting a comprehensive review of the information about the members’ spouse, Sanlam will be requesting participating employers who offer Spouse’s cover as part of their fund benefits to provide updated information about their members’ spouse i.e. Name; Surname; Marital status (i.e. legally married or cohabiting spouse i.e. living together as if married for more than 6 months); Date of Birth of spouse and ID / Passport number of spouse.
If you have any questions or need further information, please don’t hesitate to contact your Client Relations Manager.