The DigiProtect Estate Insurance is a whole of life insurance policy that pays out a lump sum on the death of the insured to the estate to contribute towards the costs associated with winding up the estate. The insurance policy pays out a lump sum amount equal to the sum assured within 2 working days of receipt of death certificate and all claim documentation supporting a valid claim.
Many people don’t realise that there are costs associated to winding up the estate of a deceased person such as executor fees, master’s fees and administration costs. Often there is no liquidity in the deceased estate (no available cash) and only assets. If a surviving spouse or family member does not have cash available, then assets need to be sold in order to pay for these costs. The DigiProtect Estate Insurance assures that there will be liquid cash available in the estate, taking this burden away from the dependents and ensuring that the estate can be wound up quicker.
The DigiProtect Estate Insurance allows for up to R200 000 worth of cover. If the amount needed towards paying the costs is lower than this amount, then the Insured may take the maximum cover and allocate the additional cover to pay to a beneficiary to be used for immediate needs after the death of a loved one. Often people don’t realise that on the death of a loved one, the bank accounts of the deceased get frozen. Often there are immediate needs and expenses that need to be paid for and having access to a payout from an insurance policy will give the beneficiary money to pay for these immediate needs.
The amount allocated towards Estate Costs will be paid to the Estate. If the Insured has taken additional cover then they will need to nominate a beneficiary who they would like to receive this payout. If a beneficiary has not been nominated, then the full proceeds will be paid to the estate. It is the insured’s responsibility to nominate the beneficiary as well as the percentage amount payable to the beneficiary.
There are no medicals or blood test required, however there are exclusions and a 3-month waiting period - accidental death is however covered from day one. These exclusions and waiting periods are disclosed on the digital portal and must be carefully read, understood and accepted.
Due to the fact that there are no blood tests or medicals required, the underwriter has imposed a 3-month waiting period as well as a staggered payout should there be a death in the first year. In terms of any claim for death due to Natural Causes the following levels of benefits will apply from the Commencement of Insurance, and any reinstatement and any increase:
The DigiProtect Estate Insurance is underwritten by Old Mutual Alternative Risk Transfer Limited (OMART), a registered long-term insurer.
The DigiProtect Estate Insurance is Life Insurance, however, it is more suited to cover the need of paying the Estate Costs due to the guaranteed acceptance. The DigiProtect Estate Insurance is non-underwritten and therefore does not require any medicals or blood tests and acceptance is guaranteed. However, there are exclusions and a 3-month waiting period applicable. Life insurance cover requires medical tests to determine if you can be granted cover upfront. And in the case of Life insurance cover, suppose you are declined due to medical reasons, you may risk being left without any cover to meet your obligations. The DigiProtect Estate Insurance thus allows for ease of application as well as guarantees that you will have the cover in place. The DigiProtect Estate Insurance is also for a specific reason: paying for the Estate Costs and keeping these insurances separate identifies these needs and ensures that they get used for the reason they were intended and taken out.
It is not compulsory. However, it is important to consider an Estate Plan policy to ensure your Estate has liquid cash on your death to pay for the costs associated with winding up of your estate and so that your spouse and/ or dependents will not have to sell assets in order to pay for these costs.
Should you meet the following listed criteria you would be eligible:
The maximum amount of cover cannot exceed R200 000 worth of cover.
The DigiProtect Estate Insurance premiums are based on your age, sex, smoking habits and socio-economic risk factors (education level and income). These factors determine the premium you pay and should any of these factors change then you are required to immediately notify the insurer who will effect a change in your premium.
There is no set percentage by which your premium will increase year-to-year as the premiums are not linked to inflation - each year as you get older, your premiums will increase. The premiums may also be reviewed annually and changed based on the advice of the actuary of Old Mutual Alternative Risk Transfer Limited (OMART), a registered Long-Term Insurer.
Premiums are paid monthly or annually in advance to enjoy cover. If you are unable to afford the premium then reducing cover is the only mechanism of making the cover cheaper.
A period of grace of one calendar month (calculated from the debit date you choose) shall be allowed for the payment of each premium. However, this grace period does not apply to the payment of the first premium on the commencement of insurance. If the first premium is not paid as required, the policy will lapse. Non-payment of the premiums on our policy will lead to the policy lapsing and benefits being lost.
Old Mutual Alternative Risk Transfer Limited (OMART) has appointed Shackleton Life to perform the Binder Function on their behalf (policy administration, premium collections and claims settlement etc.). Should a claim event arise immediate notification must be provided to Shackleton Life either telephonically on 087 232 7014 or via email email@example.com within a period of 180 days. One of Shackleton Life’s trained and dedicated claim consultants will immediately contact you to assist you with your submission and assessment of your claim during this trying and difficult time.
You can choose to start your policy immediately or at a future date, however it is important to note that you will not enjoy cover until the policy commences and furthermore your policy will only commence on condition that your first premium is successfully collected.