In today’s interconnected world, many South Africans find themselves living, working, or studying abroad. While it’s exciting to embark on new adventures, it’s vital to maintain strong ties with your financial commitments back home. A frequently overlooked aspect is ensuring that your contact details are up-to-date with your South African insurers.
Why it matters – the dangers of outdated information on your life policy or retirement annuity policy in South Africa
When South Africans relocate overseas, they need to realise the significant implications of outdated contact information with their South African insurers. This seemingly minor detail can lead to substantial complications, especially when accessing vital financial information or making claims.
Consider this scenario: A South African citizen relocates to Australia. Years later, they need to access their life policy in South Africa or their pension funds in SA. A third party, such as a financial advisor or legal representative, attempts to contact the insurer on their behalf. However, due to outdated contact information, the insurer is unable to verify the request, even with a valid letter of authority. This delay or inability to access information can cause unnecessary stress, financial hardship, and potential legal complications.
Read more: South African expat retirement planning – what you need to know about withdrawing your RA in 2024.
The impact on South African policies
The implications of outdated contact information extend to various South African policies, including:
- Life Insurance: In the event of a claim, beneficiaries may face significant delays in receiving payouts if the insurer cannot locate the policyholder or their designated beneficiaries. This can lead to financial hardship, especially for those who rely on the life insurance proceeds to cover funeral expenses or other financial obligations.
- Pension and Provident Funds: Accessing retirement savings from pension or provident funds in South Africa can only be improved if the fund administrator can communicate with or verify the member. This can delay retirement plans, limit access to funds for emergencies, and impact overall financial security.
- Retirement Annuity Funds: Like pension and provident funds, accessing retirement annuity funds in South Africa can be delayed or hindered if the fund administrator cannot reach or verify the member.
- Medical Aid: If you’re still a South African medical aid scheme member, updating your contact details is essential for claim processing and communication. Outdated information can delay claim approvals, difficulties obtaining medical treatment abroad, and potential denial of claims.
- Short-term Insurance: If you have short-term insurance policies, such as home or car insurance, updating your contact information is essential for claims processing and policy renewals.
Read more: What happens to your South African insurance policies when you move abroad?
How to keep your information updated with South African insurers
To avoid these hurdles, as a policyholder, it’s essential to take proactive steps to update your contact information with your South African insurers:
- Direct contact: Start by identifying the insurers you have policies with. Then, reach out to each insurer directly and provide them with your new contact details, including your current address, phone number, and email address. It’s advisable to keep a record of all communication with your insurers.
- Online portals: Many insurers offer online portals where you can update your information. Regularly check these portals for any updates or notifications.
- Appoint a local representative: Consider appointing a trusted individual in South Africa to act as your representative. This person can assist with any necessary communications with your insurers, such as claim submissions or policy inquiries.
- Review your policies regularly: Periodically review your insurance policies to ensure that your contact information is up-to-date. Pay attention to any renewal notices or policy changes that may require updating your details.
The benefits of staying connected with your South African insurance policies
By taking the time to update your contact information, you can ensure:
- Smooth claim processing: In the event of a claim, timely processing and payment can be ensured, minimising financial stress and uncertainty.
- Easy access to information: You can access your policy documents, financial statements, and other important information online or through your designated representative.
- Peace of mind: Knowing that your financial affairs are in order can provide significant peace of mind, especially when you’re living abroad. Having updated contact details with your
- South African insurers can help you avoid dealing with potential cross-border complexities, providing a sense of security and peace of mind.
Keep unclaimed funds from slipping through your fingers.
While we’re on financial matters, unclaimed funds are worth mentioning. The Financial Sector Conduct Authority (FSCA) oversees the financial services industry in South Africa and keeps track of unclaimed funds. These funds can include benefits from insurers, pension funds, and retirement annuity funds that have not been claimed by the rightful owners. Currently, there is R89 billion in unclaimed benefits with various financial institutions.
If you suspect you may have unclaimed funds, you can check the FSCA’s website or contact them directly to inquire. By keeping your contact information up-to-date, you increase your chances of being approached by financial institutions regarding any unclaimed funds that may be owed to you.
FinGlobal: cross-border financial specialists for South Africans
While moving abroad is an undoubtedly exciting time, it’s essential to maintain a strong connection with your financial commitments in South Africa. By keeping your contact information updated with your South African insurers, you can protect your interests, ensure a seamless transition, and mitigate potential risks associated with outdated information. Remember, a small effort in updating your contact details can have a significant impact on your financial well-being, both now and in the future.
If you need assistance with your financial transition from South Africa, FinGlobal is ready to assist. We’ve helped thousands of South Africans in more than 106 countries with various aspects of their cross-border portfolios, and we can do the same for you. From tax emigration to retirement annuity withdrawals, international money transfers and more, our dedicated team of specialists is waiting to assist you at every step.
To learn more about our trusted, convenient services, please leave your contact details on the form below, and we’ll contact you.