Question:
Hello there, my husband had a group life cover with Momentum, he resigned in 2013 due to illness and then passed away 05 April 2015. What happens to the premiums that was paid from 2004 till 2013? I was told by Momentum that funds are forfeited because my late husband resigned and died after that. The company that he worked did not tell him that he could apply for illness ,please tell me what happens to the funds after you resign?
Answer:
Sharon, With an insurance policy, funds do not accumulate in the name of the premium payer. They go into a big pot, which is used to pay out to the people who have to claim against the insurance. Once you leave the insurance scheme (stop paying premiums) you are no longer covered, and you have no more claims against the "pot".
