SA Funeral Cash Plan Rules state: “Unmarried children under the age of 21 years are covered. Cover is extended up to, but not including age 26 if the child is an unmarried full-time student.”
In general, most funeral insurance defines a dependent child as unmarried and under 21. After this a child may still be a dependent until about 26, unmarried and a full-time student. This means that if a child is still a dependant between 21 and 26, it is very important to ensure that there is proper proof of schooling. This proof is provided to you from the school where the child is studying.
This stage in a dependant child’s funeral cover can create some areas of doubt where the insurer might not pay a claim.
- There is a gap between the end of a school year and the child’s acceptance to the school for the following year. For example, during the dangerous Christmas and New Year time when young adults are out on the roads, a claim may not be covered if the child’s school application for the new year is denied (see Ombud CR335).
- It is also important to note that the rule is for “full-time” student. If the child is a “part-time” student, even if the intention is to improve grades in order to become a full-time student, a part-time student may not be fully covered and it may be wise to confirm with your insurer if they would pay a claim and to keep their answer in writing (see Ombud CR281).
- The rule can also be unclear if the dependant is working in a paid apprenticeship. An insurer may argue that as they are paid, they are not a student although an apprenticeship is learning and can be called studying (see Ombud CR185).
Proof of schooling is very important should you need to make a claim. If you are in any doubt, please confirm with your insurer in writing that your child is covered during whatever further studies they are taking or take out a new policy for your child as a main member.
https://www.ombud.co.za/topics-cases/funeral-insurance/cr335-funeral-insurance-funeral-policy
https://www.ombud.co.za/topics-cases/funeral-insurance/cr281-funeral-insurance-funeral-policy
https://www.ombud.co.za/topics-cases/funeral-insurance/cr185-funeral-insurance