Choosing the right beneficiary ensures your life cover payout best protects the people you love the most.
Choosing a life insurance beneficiary isn’t just about ticking a box. It’s one of the most important decisions you’ll make when taking out a policy. After all, your life cover is designed to support the people you love. Whether it’s paying off debt, funding your children’s education, or providing for your family’s day-to-day needs, your payout needs to reach the right hands.
Here’s how to choose your beneficiary wisely – and what to watch out for along the way.
Understand What a Beneficiary Is
A life insurance beneficiary is the person or people who will receive your policy payout when you pass away. With MiWayLife, you can nominate one or multiple beneficiaries and you can decide exactly how the payout should be split.
The most common choice is a spouse, child, or other close family member – but you’re not limited to relatives. You could also nominate a trusted friend, business partner or even a legal entity, such as a trust. Just make sure that whoever you choose will use the funds responsibly.
Be Specific – And Keep Your Details Up to Date
Always include full names, ID numbers and percentage allocations when nominating a beneficiary. It’s also important to review your beneficiary list regularly. Life changes like marriage, divorce, or the birth of a child may mean your original choices are no longer ideal.
Can a Minor Be a Beneficiary in South Africa?
In short, yes. South African law allows you to name a minor (someone under the age of 18) as a life insurance beneficiary. However, minors cannot legally receive or manage the payout themselves.
If no guardian or trust is in place, the funds will be paid into the Guardian’s Fund, which is managed by the Master of the High Court. The money will be held there until the child turns 18, and access to the funds for things like school fees or living costs must be requested through formal channels – a process that can be slow and restrictive.
To avoid this, it’s best to set up a trust (either while you're alive or through your Will) to manage the funds until the child is of age. You could also nominate a legal guardian in your Will to ensure the funds are used appropriately.
Why MiWayLife Makes It Simple
At MiWayLife, we know how important it is to protect your loved ones – which is why we make it easy to nominate and update your beneficiaries at any time. Plus, your policy includes built-in benefits like a Terminal Illness Benefit and an accelerated Funeral Benefit that pays out up to R50 000 to cover the cost of giving the life insured a dignified final farewell.
The Bottom Line
Choosing the right beneficiary requires careful thought, so take the time to get it right and don’t forget to revisit your choices as life changes. While you’re thinking about it, why not get a quick, obligation-free quote from MiWayLife today?
Did you know:
You can now take out life cover with us online in a few simple steps. No calls and no agents! Make sure to take care of those you love today by buying MiWayLife cover online.
