Question:
What happens if I am the beneficiary and the policy holder dies before we get married?
Answer:
Sindisiwe,
It is not clear to which financial product you refer. In the context of a retirement fund (pension, provident, retirement annuity or preservation fund), the beneficiaries of a deceased member’s savings are ultimately determined by the Board of Trustees. Members are encouraged to complete a nomination form, to nominate the persons who should benefit from their retirement savings on their early passing, but the Trustees must first ensure that all the member’s financial dependents have been provided for. They may refer to the nomination form, to identify such dependents, but otherwise they are not required to follow the member’s wishes. However, if the member leaves no financial dependents (children, parents relying on financial support etc), they most likely will follow the nomination form.
If you are financially dependent on the policy holder (i.e you relied on him for financial support), the trustees will allocate you a portion of the benefit (the amount is subject to their discretion). If the policy holders leaves no (other) financial dependents, and has nominated you as the only beneficiary, you will most likely receive the entire benefit, irrespective of whether you were married or not.
