Terms and Conditions for Bereavement Benefit
What Is the Bereavement Benefit?
The Bereavement Benefit is an optional add-on cover or cash support benefit designed to provide financial assistance to a policyholder or their family following the death of a covered individual. The purpose of this benefit is to help ease the immediate financial burden associated with bereavement, which may include funeral arrangements, travel, accommodation, family support, and other related expenses during a difficult time.
This benefit is not a life insurance payout and is not intended to replace the main policy benefits. Instead, it acts as supplementary financial support that can be added to your existing cover for additional peace of mind.
Conditions That Must Be Met to Qualify
To ensure fairness, sustainability, and responsible risk management for all policyholders, the following conditions must be met:
1. Active Policy Requirement
The policy must be active, paid up to date, and in good standing at the time of death.
2. Waiting Period Requirement
The bereavement benefit becomes fully payable only after the minimum waiting period specified in your policy has been completed.
- If death occurs after the waiting period, the full eligible benefit will apply (subject to policy terms).
- If death occurs during the waiting period, the full benefit will generally not be payable.
3. Accidental Death Exception
An exception may apply if death occurs as a result of an accidental event, because accidents are sudden and unforeseen. In such cases, benefits may be considered even if the waiting period has not been completed.
4. Pre-Existing or Underlying Conditions
If death results from a medical condition or illness that existed before the policy started, the event may not qualify for the full bereavement benefit. Insurance is designed to cover unforeseen future risks rather than known or developing medical conditions at the time cover begins.
5. Early Claims Within the First 6 Months
If a non-accidental death occurs within the first 6 months of the policy:
- A reduced benefit or goodwill amount may be offered, depending on circumstances and internal assessment.
- This payment is not guaranteed and remains at the discretion of the provider in line with policy rules.
Why These Conditions Exist
These requirements are necessary because the bereavement benefit is not an end-of-life or immediate claim product. Without minimum qualifying periods, individuals could purchase cover when a relative is already critically ill and claim shortly afterward, which would make the benefit unsustainable for all members.
Insurance works on shared contributions across many policyholders. The waiting period and eligibility rules help:
- Protect honest policyholders
- Prevent misuse or anti-selection
- Keep premiums affordable
- Ensure long-term availability of the benefit
- Maintain fairness across all members
What We Offer
Depending on your selected option, the bereavement benefit may be provided as:
- Cash Support Payment — A once-off financial amount paid to assist with bereavement-related costs.
- Cover Add-On Enhancement — An additional benefit linked to your existing policy cover to increase overall protection.
The exact benefit amount, eligibility period, and conditions will depend on your chosen plan and policy schedule.
Important Note
The Bereavement Benefit is designed to provide support for unforeseen loss after coverage has properly commenced. Meeting the qualifying requirements ensures that the benefit remains fair, reliable, and accessible to all policyholders who maintain active cover.