There are billions of rands of unclaimed benefits held by life insurance companies, unit trust companies and retirement funds.
Some of the money may be owed to you if you had a policy, investment or retirement savings you have not claimed, or you are beneficiary on a policy or an heir of someone who has not claimed their savings.
Unclaimed retirement savings are dealt with in terms of the Pension Funds Act. Read more: How can I find out if I am owed any unpaid benefits from a retirement fund?
This article deals with unpaid life policy and investment proceeds.
For how long can I claim unpaid benefits?
Most life insurers and investment houses will honour a claim on a policy or for investment proceeds no matter how long it takes for the policyholder, beneficiary, investor or heir to come forward.
This is because most insurers and investment houses are members of the Association of Savings and Investments South Africa (ASISA).
ASISA members have agreed not to rely on the Prescription Act in terms of which a claim can prescribe after three years.
Instead they have agreed to abide by ASISA’s Standard on Unclaimed Assets in terms of which unpaid money can be claimed at any time and will never become the property of the company or its shareholders.
Insurers and investment houses that are not ASISA members may or may not rely on the Prescription Act, depending on the terms of the contract and what Treating Customers Fairly principles the company applies.
Not sure of the company name?
What can you do if you do not know the name of the company or it has changed its name?
You can check the list of ASISA members here.
Will the insurer or investment house contact me?
Companies have committed to reminding policyholders, beneficiaries and heirs of their entitlement to any money held on their behalf.
However, if your contact details have changed and you, or the policyholder did not inform them, they may be unable to reach you. They will try to trace you, possibly even using social media searches or tracing agencies.
If a tracing agency is used, the tracing process can be audited by the life insurer or investment house.
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REMEMBER ASISA’s Standard on Unclaimed Assets does not apply if the unpaid money is in a retirement annuity policy or preservation fund - even if it is held by a life insurer or investment company that is an ASISA member. The standard does apply to money held in a living annuity or guaranteed annuity.
Read more: What are the different kinds of guaranteed (life) annuities? |
How the money will be invested?
If all reasonable efforts to trace you over a three-year period are exhausted, life insurers and investment companies can invest the money for commercial returns from socially responsible investments, such as those 
to develop new suppliers. A valid claim to the assets will still, however, be met.
If you were invested in a policy where the company has promised to meet a particular return or investment goal over a period, the insurer can invest the unclaimed funds however it thinks is appropriate once the term has expired.
However, if the policy proceeds or investment were invested in the market at your risk, the insurer or investment house must aim for investment returns in line with “reasonable expectations”.
Be aware
Many life and funeral policies do not have any value if you stop paying the premiums and the policy lapses. When the policy lapses you are no longer covered. This also means the beneficiaries have no claim. Read more: Does a life policy have a value that should be paid to me when I cancel it? and: What happens if you skip a payment on a life, disability or severe illness policy?
A guaranteed annuity will only have benefit payable to beneficiaries if the policyholder agreed to the annuity paying out for a guaranteed term and died before the term was up.