Question:
How long does it take for pension benefits and life insurance to pay out?
Answer:
Monique
At 10X, the timing standard for paying claims from a retirement fund is 14 business days from having received a copy of the completed and signed claim form, copy of ID and copy of bank account confirmation, assuming that the last contribution has been run.
For life insurance (GLA) the timing is dependent on whether the insurance is approved or unapproved.
Approved – benefit will be paid by the fund, together with fund credit, within seven business days of the trustee resolution having been passed. The timing of the trustee resolution is dependent on the complexity of the specific case e.g. number of spouses/ partners, number of actual and factual dependents, quality of information received from employer, level of investigation required by trustees, etc. Legally, a decision has to be reached and a resolution passed within 12 months of death, but it is normally done much faster than this.
Unapproved – is paid by insurer to the beneficiary(ies) after the required documents have been submitted to the insurer (claim form, death certificate, ID, beneficiary form, beneficiary ID, banking details, deceased’s pay slip) and this varies from insurer to insurer and can take 10 days up to two months.
