Guide: What Your Family Needs to Know About Your Insurance Policies

Life is unpredictable, which is why many people take out insurance to protect their loved ones. Yet billions of rands in benefits remain unclaimed, especially from Life Insurance, simply because beneficiaries either don’t know the cover exists or aren’t sure how to claim. Being prepared isn’t just about having the right policies in place. It’s about ensuring your family or beneficiaries know exactly what to do if they ever need to claim. Taking the time to share this information can prevent unnecessary stress, confusion, and financial hardship during an already difficult period. Discover more and get the right information from this comprehensive guide from Auto and General. 

Essential Information to Share With Your Family

Make your beneficiaries aware of all your policies. Rather than leaving loved ones to sort through paperwork, make them aware of every policy you hold and what each one is for. This may include:

• Life Insurance

• Funeral Cover

• Disability Insurance

• Dread Disease Cover

• Pension funds or retirement annuities

• Investments

• Medical Gap Cover

Once your family understands what policies exist, they also need to know what events trigger a claim — such as death, disability, or critical illness.

For example:

• If you pass away, beneficiaries may claim from a life or funeral policy.

• If you become critically ill or disabled, a family member may need to claim from your Disability or Dread Disease Insurance.

Share Policy Details, Exclusions, and Waiting Periods

It’s equally important to explain any exclusions or waiting periods that apply to your policies. These details, found in your Life Insurance policy schedule, help manage expectations and avoid complications when a claim is submitted.

Keep Your Policy Documents Safe and Accessible

Whether your documents are stored physically or digitally, your beneficiaries must know where to find them. If policies are kept at home, in a safe, or with an adviser, make this clear. If they’re stored electronically, ensure someone trusted has access when needed. These documents outline:

• What is covered?

• Who the beneficiaries are?

• How and where to submit a claim?

Why a Claims Instruction Sheet Is Important

Creating a simple claims instruction sheet for each policy can make the process much easier. This one-page guide should include:

• Policy number

• Contact details for the claims department

• Key policy information

• Any specific instructions relevant to the claim

Having this information readily available can greatly assist your family with paperwork during a stressful time.

Explain the Claims Process Clearly

Who Can Claim for Life Insurance, Funeral Cover, Disability Insurance, or Dread Disease Cover? Ensuring the correct person submits the claim is essential:

• Life Insurance policy: The listed beneficiaries claim.

• Funeral Cover policy: If the principal member passes away, the beneficiary claims. If an additional member passes away, the principal member claims.

• Disability or Dread Disease Insurance policy: The life assured claims, or a family member may do so if they are unable to.

Documents Your Beneficiaries Will Need

To help the process run smoothly, families should be prepared with key documents such as:

• Policy number

• Original or certified copy of the life assured’s ID

• Beneficiary identification and bank details (if the payout is to them)

Some claims may also require additional documentation, like doctors’ or specialists’ reports, depending on the policy. It’s always best for claimants to confirm requirements with the insurer first.

Communicate Your Wishes for Using the Payout

People take out Life Insurance for very personal reasons. Some want to ensure a home loan is settled, others want to provide an income, fund children’s education, or cover funeral costs.

Let your family know why you chose the Life Insurance policy and how you would like the funds used. Sharing these wishes — whether in conversation or written form — provides clarity and helps prevent unnecessary financial decisions, such as overspending on funeral arrangements.

Update Your Family on Any Life Insurance Policy Changes

If you increase your cover, add or remove beneficiaries, or take out additional benefits, keep your family informed. Regular updates ensure they understand what protection is in place and who is entitled to claim.

Keeping everyone in the loop avoids uncertainty and ensures your cover works exactly as intended when it’s needed most.

Review and Update Beneficiary Information Annually

Make it a habit to review your policies with your beneficiaries at least once a year. Confirm that:

• Beneficiary details are correct

• Contact information is up to date

• Your family still knows where documents are stored

• Everyone understands the claims process

This annual check-in provides you with peace of mind and ensures your loved ones are prepared to act confidently during what can be a very turbulent time.

Get a Life Insurance Quote from Auto and General 

With decades of experience, Auto and General encourages policyholders to take these practical steps so their families are fully supported when it matters most. Ensuring your loved ones have the right information today means they can rely on that protection tomorrow. Get a Life Insurance quote from Auto and General to protect your loved ones. 

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Disclaimer: The information in this article is provided for informational purposes only and should not be construed as financial, legal, or medical advice. Auto and General is a licensed non-life insurer and FSP, Ts & Cs online.