Terms & Conditions

Freedom Life Funeral Cover

Summary of the most important Terms & Conditions

The insured persons:
The policyholder must select the required cover option. The cover option is the different values of cover available to the policyholder at different prices, as offered from the insurer at the time of commencement or time of change. The policyholder must select the spouse and/or children and/or extended family members (at an additional cost) to be covered as insured persons – persons are not covered unless listed on the policy. The cover option selected and the names of the specified spouse and/or children and/or extended family members covered are recorded in the policyholder’s policy schedule..
The insured events:
The policy covers insured persons in the event of death due to an accident or other unnatural cause (immediate cover) and in the event of death due to natural causes after a period of 6 months from the date of commencement of the policy.
The benefits:
A lump sum benefit is payable in cash, dependent on the amount of cover selected by the policyholder. The amount of cover selected by the policyholder is recorded in their policy schedule. No surrender value is payable on the policy. No repatriation benefits are included.
Waiting periods and exclusions:
  • A general waiting period of 6 months applies for death due to natural causes. This means no benefits will be paid in respect of death due to natural causes for the first 6 months starting on the commencement date of the policy. If a spouse, child or extended family member is added to the policy as an insured person, no benefits will be paid in respect of death of the newly added insured person due to natural causes for the first 6 months after the new insured person is added. A waiting period of 9 months is applied to extended family members whose cover is activated from the age of 65 years.
  • No benefits will be payable if the insured person engages in any risky activity. The full list of exclusions is listed in clause 17.
The premium:
Premiums must be paid in advance (before the 1st of every month) and received by the insurer every month to ensure cover. Failure to pay premiums in full will result in the policy being terminated and no benefits being paid. There is a grace period of 1 month to settle a missed or partially paid premium.
Cooling-Off Period:
The policy can be cancelled within 31 days after the commencement date and all premiums paid during this period will be refunded to the policyholder.
Commencement of cover:
The policy and cover will commence on receipt of first premium, provided the insurer has accepted the application. Extended family members’ cover commence on the date that the additional premium is received, provided that the policy premiums are up-to-date.
Termination of cover:
The policy will automatically terminate when the policyholder dies or if the policyholder fails to pay the required premiums. Cover for insured children terminates when they die, reach the age of 21 years (or 26 years if a full time student) or if they are no longer nominated by the policyholder to be covered. Cover for any other insured person will terminate when he or she dies or is no longer nominated by the policyholder to be covered.
Payment Hierarchy:
The death of any insured person other than the policyholder results in the claim being paid out to the policyholder. If the policyholder is deceased, the claim is paid to the nominated beneficiary. If no beneficiary was nominated or if the nominated beneficiary is deceased, the claim is paid to a court appointed beneficiary or the policyholder’s estate.
Importance of the cell number provided:
The cell number provided by the policyholder is the primary and formal communication channel used by the insurer and their representative to communicate with the policyholder. It is the policyholder’s responsibility to ensure that the insurer and their representative are notified of any changes to this number.

Full Terms & Conditions

  1. The Policy

    1. These policy terms and conditions, the policyholder’s policy schedule and all information and documents provided by the policyholder to the insurer, whether electronically, in paper format or voice recorded, shall constitute the entire contract between the policyholder and the insurer. These are collectively referred to as the policy. In the event of any conflict between the provisions of the policy schedule and that of any of the aforementioned documents, the provisions of the policy schedule shall prevail.
    2. The policy is governed by the laws of the Republic of South Africa.
  2. The Insurer

    1. The insurer is Old Mutual Alternative Risk Transfer Limited (“OMART”), registration number 1997/008994/06, a registered long-term insurer in terms of the Long-term Insurance Act. The insurer is a member of the Old Mutual Group.
  3. The Binder Holder

    1. Freedom Technologies (Proprietary) Limited, registration number 1969/012588/07 (hereafter referred to as “Freedom Technologies”), an authorised financial services provider (FSP number 47458), has been appointed by OMART in terms of a binder agreement to perform all administrative functions in respect of the policy. OMART pays Freedom Technologies a binder fee of 7.5% for these services.
  4. The Representative

    1. Freedom Technologies has been engaged by OMART to market and sell this policy. Freedom Technologies is not an independent intermediary and may only market and sell policies on behalf of OMART. OMART remunerates Freedom Technologies in accordance with the Long Term Insurance Act. Freedom Technologies currently earns between 3.25% and 24% (depending on the premium size) of each premium paid for each policy issued.
  5. The Cell Arrangement

    1. OMART has a number of shareholders, of which Freedom Technologies is one. As a preference shareholder, Freedom Technologies shares in the profits and losses which arise from all insurance business under this Funeral product. This is commonly referred to in the insurance industry as a cell captive arrangement.
  6. Contact Details & Information

    1. The terms and conditions of the policy are also available at:
      Website link:
      www.freedomlife.co.za/terms
      Telephone number:
      0876 250 693
      USSD number:
      *120*1049#

    Any changes and amendments to the policy, including but not limited to, changes to the beneficiary, insured spouse, extended family members and children, can be made through the Website, USSD number or call centre.

    For any other enquiries kindly find the contact details below.

  7. Recognised Financial and Cellular Service Providers

    1. Debit orders for the payment of policy premiums as well as claim payments are only arranged through the following financial institutions: ABSA, Standard Bank, First National Bank, Capitec and Nedbank.
    2. Only South African-registered cellular numbers are allowed as the (mandatory) telephonic contact for matters pertaining to the policy.
  8. Eligibility Criteria

    1. All insured persons have to be South African citizens who are ordinarily resident in South Africa.
    2. Other eligibility criteria:
        Minimum Entry Age* Maximum Entry Age* Maximum insured persons per policy
      Policyholder 18 years 64 years 1
      Spouse 16 years 64 years 1
      Children 0 years 20 years /
      25 (student)
      6
      Stillbirth β 28 weeks pregnancy 0 years n/a
      Extended family 0 years 69 years/td> 6

      * “Entry Age” denotes the age of the insured person at the time at which the insured person is first reflected (activated for extended family members) on the active policy and without having been removed since.

      β Stillbirth cover applies only to the policyholder and/or their insured spouse. Pregnancies do not need to be reflected on the policy to qualify for a stillbirth benefit.

      * A new born child is covered for the first 90 days of life even if not (yet) added as a dependant on the policy

  9. The Policyholder and Insured Persons

    1. The policyholder is the owner of the policy, as recorded in the policy schedule.
    2. A person is eligible to become a policyholder if he or she at the commencement of the policy in terms of clause 22, meets the eligibility requirements set out in clause 8 above.
    3. The policy cannot be ceded to another person or entity.
    4. For the purpose of the policy, a spouse of the policyholder is someone who is:
      1. legally married to the policyholder, or
      2. able to prove, to the satisfaction of the insurer, that for at least six consecutive months immediately prior to any relevant claim, he or she has been the partner of the policyholder in a serious relationship akin to a monogamous marriage between 2 persons, or
      3. in a union recognised in terms of the Recognition of Customary Marriages Act.
    5. For the purpose of the policy, an extended family member is defined as one of the following in relation to the policyholder:
      Aunt / uncle Biological sibling of the biological parents of the policyholder or spouse
      Brother / sister or brother-in-law / sister-in-law Biological sibling of the policyholder or spouse
      Son / daughter or son-/daughter-in-law Biological child of the policyholder or spouse and which do not qualify as a child dependent because of their age
      Grandfather / grandmother Biological parent of a biological parent of the policyholder or spouse
      Grandson / granddaughter Biological child of a biological child of the policyholder or spouse
      Stepfather / stepmother Spouse of policyholder’s biological parent / Spouse of the biological parent of the policyholder’s spouse
      Stepson / stepdaughter Biological child of the policyholder’s spouse and which do not qualify as a child dependent
      Niece / nephew Biological child of a biological sibling of the policyholder
      Parent Biological parent of the policyholder or of the policyholder’s spouse
    6. For the purpose of the policy, the nominated child must be a person under the age of 21 years who is a biological or legally adopted child of the policyholder and who has not been emancipated. A child may continue to be covered from the age of 21 where it is proved to the satisfaction of the insurer that the child is disabled (in which case the child may be covered for the whole of their life), or a full time student at a recognised secondary or tertiary educational institution (in which case the child may be covered until he or she reaches the age of 26 years).
    7. The policyholder must be able to prove his or her relationship to the spouse or child by a marriage certificate or birth certificate, or other proof acceptable to the insurer.
    8. The policyholder may at any time change the cover option selected in terms of clause 11 by notifying the insurer, subject to an appropriate adjustment to the premium (also refer to clauses 13 to 15 with regards to benefits and waiting periods after any changes to an existing policy).
    9. The policyholder must nominate the spouse and/or children and/or extended family members to be covered as insured persons by notifying the insurer through the Website, USSD or call centre. If they are not nominated, they will not be covered. The policyholder may withdraw a nomination or add a nomination at any time by notifying the insurer.
    10. The insured persons must be citizens of, and ordinarily resident in, the Republic of South Africa and in possession of South African identification documentation. For the purpose of the policy, ordinarily resident means the insured person resides in the Republic of South Africa and regards it as their permanent home.
  10. Insured Events

    1. An insured event occurs when the insured person dies. Refer to Exclusions (clause 17).
  11. The Cover Option and Benefits Payable

    1. At the commencement of the policy in terms of clause 22, the policyholder must select a cover option (i.e. the different values of cover available to the policyholder at different prices, as offered from the insurer at the time of commencement or time of change). The cover option selected by the policyholder and the associated premium is recorded in the policy schedule.
    2. Dependant children from the age of 14 can be covered for a maximum of half of the cover amount of the policyholder. Children aged 13 can be covered for the lesser of R30 000 or 50% of the cover amount of the policyholder. Children from the age of 6 to 12 can be covered for a maximum of 25% of the cover amount of the policyholder. Children aged 5 can be covered for the lesser of R10 000 or 25% of the cover amount of the policyholder. Children from the age of 0 to 4 can be covered for a maximum of 12.5% of the cover amount of the policyholder.
    3. A benefit will only be payable provided a valid claim has been submitted to the insurer and all premiums have been paid.
    4. No individual may be insured for more than R75 000 on Freedom Life Funeral Cover. The total amount that an individual is insured for is considered across all policies, whether insured as a policyholder or dependent.
    5. No investment, surrender or loan values are payable in terms of the policy.
    6. No interest shall be payable by the insurer on any benefits.
  12. Unnatural death

    1. An unnatural death (also commonly referred to as an accidental death) is defined as the death of the insured person resulting directly and solely from bodily injury by an unanticipated accidental or violent event and which death occurred within 90 days after the occurrence of the event.
    2. Death during or following elective surgery is NOT accepted as unnatural death.
  13. Waiting Period

    1. No general waiting period shall apply in the event of an unnatural death.
    2. A general waiting period of 6 months applies for death due to natural causes. This means no benefits will be paid in respect of death due to natural causes that occurred during the first 6 months of the insured person being covered under the policy. In the case of extended family members 65 years and older at the date of becoming covered under the policy, the general waiting period will be extended to 9 months.
    3. If a spouse or child is added to the policy as an insured person after it has already commenced, the general waiting period (and accidental cover) commences on the date that they are added to the policy.
    4. If an extended family member is added to the policy as an insured person after it has already commenced, the general waiting period (and accidental cover) commences on the date of being activated under the policy (see clause 16.2 for extended family member activation).
    5. No stillbirth benefits will be payable for stillbirths that occurred during the first 6 months of the insured person (either a female policyholder or female spouse) being covered under the policy
    6. No benefits will be payable for suicide which occurred during the first 24 months of the insured person being covered under the policy.
    7. No waiting period will apply to new born children of the policyholder or spouse that are added as child dependants to the policy within 90 days of their birth. The maximum number of insured children on the policy as stated in clause 8 is however still applicable.
    8. The following table summarises waiting periods applicable to policies:
      Insured Person Manner of Death Waiting Period Start Date Waiting Period Length in Months
      Policy Holder Natural Policy Commencement Date 6
      Suicide Policy Commencement Date 24
      Spouse & Child Natural The latter of:
      • Policy Commencement Date
      • Date Added
      6
      Suicide The latter of:
      • Policy Commencement Date
      • Date Added
      24
      Extended Family < 65 Natural The latter of:
      • Policy Commencement Date
      • Date Added
      6
      Suicide The latter of:
      • Policy Commencement Date
      • Date Added
      24
      Extended Family 65+ Natural The latter of:
      • Policy Commencement Date
      • Date Added
      9
      Suicide The latter of:
      • Policy Commencement Date
      • Date Added
      24
      stillborn Child
      (to female policyholder or spouse)
      Stillbirth The latter of:
      • Policy Commencement Date
      • Date Added
      6
  14. Increasing the cover option

    1. The cover option can be increased (i.e. the policy can be “upgraded”) by the policyholder after the commencement of the policy, provided that the policyholder and spouse (if any) is younger than 65.
    2. The change in cover option commences once requested by the policyholder and only after the new premium has been paid.
    3. The price of the higher cover option will be the prevailing price for that cover option at the time of its commencement.
    4. A new waiting period applies to the incremental increase in cover from the commencement of the change in cover. During the new waiting period, the original cover (and original waiting period where relevant) is applicable. The new waiting period does not apply to unnatural death.
    5. Example in respect of death due to natural causes: if the cover amount is increased from R10,000 to R20,000 after paying premiums for 6 months, the policyholder will only qualify for the R20,000 after another 6 months have passed. The period between 6 and 12 months is only covered for R10,000).
    6. Cover options can only be increased to one of the available cover options at the time of upgrade.
    7. Cover options cannot be increased if the policyholder or spouse is older than 64.
  15. Decreasing the cover option

    1. The cover option can be decreased by the policyholder subsequent the commencement of the policy
    2. The change in cover option commences at the end of the calendar month in which it was requested by the policyholder. This applies to both unnatural and natural death cover and there is no additional waiting period involved.
    3. The price of the lower cover option will be the prevailing price for that cover option at the time of its commencement
    4. Cover options can only be decreased to one of the available cover options at the time of upgrade.
  16. Extended family

    1. Up to 6 extended family members of the policyholder can be covered under this policy on an individual basis.
    2. The cover of an extended family member commences (i.e. is activated) once requested by the policyholder and only after the new premium has been received by the insurer.
    3. The maximum entry age for an extended family member is 69 years.
    4. Extended Family cover options and the additional premium are dependent on the age of the extended family member and the cover option chosen by the principal member. Extended family members from the age of 14 can be covered for a maximum of half of the cover amount of the policyholder. Extended family members aged 13 can be covered for the lesser of R30 000 or 50% of the cover amount of the policyholder. Extended family members from the age of 6 to 12 can be covered for a maximum of 25% of the cover amount of the policyholder. Extended family members aged 5 can be covered for the lesser of R10 000 or 25% of the cover amount of the policyholder. Extended family members from the age of 0 to 4 can be covered for a maximum of 12.5% of the cover amount of the policyholder.
    5. The additional premium associated with the cover of each extended family member is recorded in the policy schedule.
    6. Cover options for extended family members can be increased or decreased after their activation on the policy, independently from the policy cover, but within the restrictions outlined in 16.4. Extended family cover do not automatically increase /decrease with an increase/decrease in policy cover, other than to align with the restrictions outlined in 16.4. Cover cannot be increased once the extended family member reached the age of 70. A waiting period as described in 14.4 is also applicable to cover increases.
  17. Exclusions

    No benefit will be payable if the insured event, directly or indirectly, is caused by, arises or results from, is contributed to by, or is traceable to:
    1. participation in war, invasion, act of foreign enemy, hostilities (whether declared or not), civil war, mutiny, insurrection, rebellion, revolution, military or usurped power,
    2. participation in labour disturbances, riots, demonstrations, strikes or lock-outs,
    3. wilful exposure to danger (except in an attempt to save a human life), intentional self-inflicted injury, or suicide or attempted suicide within the first 2 years following the commencement of the policy in terms of clause 22,
    4. engaging in aviation, other than as a fare paying passenger in a fixed wing aircraft, provided and operated by an airline or air charter company, which is duly licensed for the regular transportation of fare paying passengers,
    5. the influence of alcohol on the insured person or an injury or illness sustained by the actions of the insured person when their blood alcohol content exceeded the level permitted by the road traffic laws of the country where the hospital confinement and/or bodily injury took place,
    6. the intentional inhalation of fumes by the insured person, or the influence of drugs or narcotics on the insured person, unless administered by a registered member of the health profession or unless prescribed by and taken in accordance with the instructions of a registered member of the health profession, and not for the treatment of drug addiction,
    7. any involvement in any criminal activity as a willing participant,
    8. engaging in hazardous activities such as, but not limited to, racing, bungee jumping and extreme sports, or
    9. exposure to radioactivity, atomic energy, nuclear reaction, terrorism, nuclear or biological or chemical hazards and warfare agents.
  18. Premium

    1. The premium is the monthly payment that must be paid for cover under the policy, and is payable monthly in advance (before the 1st of every month). Premiums must be paid in full every month for the duration of the policy. The amount of the premium is recorded in the policy schedule.
    2. If a premium, or any part thereof, is not received by the due date then the policyholder has a calendar month’s grace in which to pay the arrears amount. Should the full missed premium not be paid within the grace period, the policy will terminate automatically.
    3. The policy’s premium is not guaranteed for the duration of the policy and may be reviewed and adjusted bi-annually for any of the following reasons:
      1. Claims and expense experience for the product has been such that future losses are anticipated.
      2. Regulatory changes have resulted in the premiums becoming unsustainable.
    4. The insurer will inform the policyholder in writing (through an SMS to the cell phone number provided) at least 30 days before a review which is likely to result in a premium adjustment.
  19. Refunds

    1. Refund requests will be considered on a case by case basis and subject to the provision of supporting documentation.
  20. Nomination of a Beneficiary

    1. The policyholder may nominate one beneficiary to receive payment of the death benefit in the event of his or her death, by notifying the insurer through the Website, USSD number or call centre.
    2. If no nomination is received by the insurer prior to the death of the policyholder, or the beneficiary nomination is invalid due to the nominated beneficiary not surviving the policyholder, then the benefit will be payable to a court-appointed beneficiary or the policyholder’s estate.
    3. If the nominated beneficiary is a minor, the benefit will be paid to the beneficiary’s legal guardian.
  21. Claims

    1. All claims must be submitted to the insurer within 3 months of the date of death. If this is not done then the claim will not be considered by the insurer and therefore not paid.
    2. The claimant must supply all required written proof and other information that is reasonably requested by the insurer, at the policyholder’s expense.
    3. Upon the admission of a valid claim**, the benefits shall be payable to:
      1. the policyholder in respect of death of a nominated spouse and/or children and/or extended family, if applicable;
      2. the beneficiary nominated in terms of clause 20, or a court-appointed beneficiary or the policyholder’s estate in the absence of a valid beneficiary nomination.
    4. Once a claim has been paid, the insurer shall have no further liability towards the policyholder in respect of the death of the nominated spouse and/or children and/or extended family members (if applicable) or to the nominated beneficiary and/or the policyholder’s estate (in respect of death of the policyholder) (also refer to clause 22.4 with regards to automatic termination of policy).
    5. In the event that a claim is approved, a letter will be sent to the claimant to advise him/her accordingly.
    6. In the event that a claim is rejected, a letter will be sent to the claimant that specifies the reason(s) for the rejection as well his/her avenues for recourse.
    7. Successful claims on policies that are in arrears but not yet terminated will necessitate the deduction of the outstanding premium from the cover amount before payment.

    ** Subject to the receipt of all required documents.

  22. Commencement and Termination

    1. The policy and cover will commence on receipt of the first premium, provided that the insurer has accepted the application.
    2. Where the policyholder nominates a new spouse and/or child to be added as insured persons, the cover (and waiting period in the event of natural death) for such insured persons shall commence at the time that they are added to the policy. For the nomination of additional/new extended family members, the provisions of clause 16.2 apply.
    3. The insurer shall be entitled to terminate the policy and reject a claim, if a claim is submitted and such claim is determined by the insurer to be based on fraud. If this happens no benefit will be payable and premiums received prior to termination will not be refunded.
    4. The policy and cover for all insured persons will automatically terminate:
      1. when the policyholder dies, or
      2. the required premium payments were not made (clause 18.2),
      3. whichever occurs first.
    5. If applicable, the cover for the nominated spouse and extended family members shall automatically terminate:
      1. when the nominated spouse and/or extended family member dies, or
      2. at the time at which the policy reflects that the policyholder has withdrawn the nomination of that spouse or extended family member, by notifying the insurer,
      3. whichever occurs first.
    6. If applicable, the cover for the nominated child shall automatically terminate:
      1. when the nominated child dies,
      2. at the end of the day before the nominated child reaches the age of 21 years (or 26 years if a full time student),
      3. at the time at which the policy reflects that the policyholder has withdrawn the nomination of that child, by notifying the insurer,
      4. whichever occurs first.
    7. Either party (i.e. the policyholder or the insurer) may cancel the policy by giving at least 31 days prior written notice to the other party. The policy will terminate on the last day of the calendar month and no pro-rata premiums will be refunded.
  23. Complaints

    1. The client can complain by using any of the following facilities:
      Website www.freedomlife.co.za/contact
      USSD Facility Use the USSD number *120*1049# and select the complaints option
      Direct E-mail address complaints@freedomlife.co.za
      Telephone number 0876 250 693
      OMART direct e-mail address OMARTComplaints@oldmutual.com
    2. Should you be unsatisfied with the complaints handling process of Freedom Technologies and/or OMART, you can contact the Ombudsman for Long-term Insurance:
      Postal Address Physical address Telephone
      Private Bag X45

      Claremont

      7735

      Sanclare Building, 3rd Floor

      21 Dreyer Street

      Claremont

      Cape Town

      7700

      021 657 5000
      Website E-mail Fax
      www.ombud.co.za info@ombud.co.za 021 674 0951
    3. If your complaint relates to the policy sales process which is facilitated by Freedom Technologies, you can contact the FAIS Ombud:
      Postal Address Physical address Telephone
      Financial Services Conduct Authority

      PO Box 74571

      Lynwood Ridge

      0040

      Sussex Office Park

      Ground Floor, Block B

      473 Lynnwood Road Cnr Lynnwood Road & Sussex Ave

      Lynnwood

      0081

      012 762 5000

      012 470 9080

      Website E-mail Fax
      www.faisombud.co.za info@faisombud.co.za 086 764 1422 / 012 348 3447
    4. You have 180 days to take legal action against the insurer. If you fail to do so, any claim against the insurer becomes unenforceable. It is therefore recommended that you do not delay taking action.

V_Feb2019