Can unclaimed pension funds be used to cover funeral costs?


Question:

I want to know if you have a person that die and never have anything from his pension for the fimaly and for the funeral

Answer:

Yolanda,

If the deceased person belonged to a pension or provident fund, then their money saved in that fund becomes a so-called death benefit, and is paid out to the deceased financial dependants. The fund trustees will allocate the money but the fund must be informed of the person's passing first. It can take up to a year for this money to be paid out. Funeral costs can be covered by the proceeds of a funeral policy, but of course only if the member or their spouse had taken out such a policy (possibly, this was attached to the pension fund).

The information and answers supplied in this section do not constitute advice as defined by the Financial Advisory and Intermediary Services Act, 37 of 2002.


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