An update to the Policyholder Protection Rules (PPR) (Rule: 2A.6) states, Insurers’ may not impose a waiting period on members who wish to enter a new individual funeral policy after their service with their employer is terminated, provided they were previously covered by a group funeral policy.
When a member’s employment is terminated and they wish to enter into a new funeral policy, by law an insurer may not impose a waiting period, provided that:
- The person entering the new policy has been a member of a group funeral insurance policy for at least six months
- the insurer for the new policy receives an instruction within 31 days after termination of service from the employer and
- the lives insured under the new policy should be the same as the previous policy.
The funeral policy will still be subject to all other terms and conditions applicable to new funeral policies issued by the insurer at that time.