The Importance of Completing Your Beneficiary Nomination

The purpose of a beneficiary nomination form is to ensure your loved ones receive financial support from your group benefits in the event of your death. Recent changes in the law have made completing these forms more critical than ever.

Previously, some insurance providers could pay the death benefit from unapproved group life policies to the policyholder (your employer). However, the updated Insurance Act now mandates that payments can only be made to the beneficiaries you nominate prior to your death. If no beneficiary is named or if the nomination is invalid, the benefit must be paid to your estate. This change prohibits death benefits from being paid to any other parties.

It is now essential for members with unapproved group life policies to complete a beneficiary nomination form. This action ensures that your loved ones and other dependants are not left financially vulnerable during an already difficult time. This change in the Act also affects funeral benefits, which can only be paid to your nominated beneficiary. Please note that separate nomination forms are often required for different benefits, such as life and funeral policies.

Completing the relevant forms provides essential information for a smooth and prompt pay-out, preventing delays that could cause further financial and emotional stress for your family. By taking this simple step, you gain peace of mind knowing that your intended beneficiaries will receive the payment in the shortest possible time.