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NAC Burial Fund Changes Effective 1 July 2019: Membership, Premiums, and Benefits

Learn about the changes to the NAC Burial Fund, including new membership criteria, revised premiums, and enhanced benefits, effective 1 July 2019. Discover how these changes will impact you and ensure a dignified funeral at an affordable premium.

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NAC Burial Fund Changes Effective 1 July 2019: Membership, Premiums, and Benefits

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  1. AGENDA Introduction Change Effective 1 July 2019 – background and process Membership to the NAC Burial Fund Joining criteria of the NAC Burial Fund Annual Premium Fund Benefits Procedure at time of death Documentation Required Role of the Burial Fund Co-Ordinator Role of Funeral Undertaker as from 1 July 2019 Summary Closing

  2. INTRODUCTION Slide 3 of 32 NAC Burial Fund is in existence for 86 years. It has grown from 30 to more than 72,000 subscribers. The Fund was started with the purpose of providing members with support at the time of death. Mission is to provide a dignified funeral at an affordable premium. The Fund remains committed to members. Over time changes are necessary.

  3. CHANGE EFFECTIVE 1 JULY 2019 BACKGROUND AND PROCESS During 2017, the Fund was informed by the Financial Services Conduct Authority (FSCA), it had exceeded the benefit limit. Amendments were needed to comply with legislation. External market and consumer forces also necessitated a review of the existing model. Our church became much bigger. Establishing our own insurance company with limited resource is a huge challenge. After months of intense discussions, a decision was taken to have the Fund underwritten.

  4. CHANGE EFFECTIVE 1 JULY 2019 BACKGROUND AND PROCESS (cont.) • Appointing an underwriter. • Quotes obtained from various underwriters in the industry based on the following criteria: • Adherence to all statutory and regulatory legislation • Track record and integrity record • Expertise in the large group funeral insurance industry • Service record in the industry • Rating by independent rating agencies • B-BBEE criteria

  5. CHANGE EFFECTIVE 1 JULY 2019 BACKGROUND AND PROCESS (cont.) A major consideration was the flexibility of the underwriter in terms of the administration capabilities of the Fund. Underwriters were shortlisted. Shortlisted underwriters invited to present to the Burial committee.

  6. CHANGE EFFECTIVE 1 JULY 2019 BACKGROUND AND PROCESS (cont.) Old Mutual appointed as the underwriter. Old Mutual is in existence for 174 years. No committee member or broker earned commission on this appointment.

  7. CHANGE EFFECTIVE 1 JULY 2019 As of 1 July 2019 the Fund will be underwritten by Old Mutual. Old Mutual and NAC Burial Fund will be jointly responsible for administration. Fund continues to collect premiums in congregations. Fund makes payment to Old Mutual. Old Mutual insures risk. Cash Funeral Benefit paid by Old Mutual to the member. Members pays undertaker.

  8. MEMBERSHIP OF THE NAC BURIAL FUND Membership of the Fund is voluntary. Thus; Members can decide to remain with the Fund - in which case future benefits will be paid out by Old Mutual. Premiums are payable annually in advance – cover is valid for a 12 month period covering July to June. The Fund still offers good value for money.

  9. MEMBERSHIP OF THE NAC BURIAL FUND What changes? Premiums will be collected as usual, either in the congregation or via personal EFT’s. Fund will pay premiums over to Old Mutual. At the time of death, a Cash Benefit will be paid out to the member by Old Mutual. The member will pay the undertaker directly.

  10. JOINING CRITERIA - NAC BURIAL FUND Only members of the New Apostolic Church South Africa can join. Introductory offer is available to all members regardless of age. Offer valid between 1 July 2019 to 30 August 2019. Pre-existing conditions and a 3 month waiting period apply. From 1 September 2019 maximum entry age is 65.

  11. JOINING CRITERIA - NAC BURIAL FUND Previously 21 year olds had automatic entry to the Fund – this will no longer apply. They will have to apply for membership. No policies will be made ‘paid-up’ into the future. Only existing ‘paid-up’ policies will continue to enjoy the benefit. Paid-up option ceased to exist in 1995. You qualified for this if you were 60 years old and in the Fund for 20 years at that time.

  12. ANNUAL PREMIUM Current Fund premium = R340 per year. Old Mutual premium = R472 per year. (increased benefit) Shortfall will be subsidized by the Fund. Late payments will not be accepted. Lapsed policies will be strictly enforced. Future market related increases will narrow the gap in the premium shortfall. The Fund subsidizes the premium for the Living Benefit.

  13. FUND BENEFITS Cash benefit paid within 48 hours. (on receipt of all documentation) Member chooses preferred undertaker. Member has more control over cost and services delivered by undertaker. Old Mutual Funeral Support services available. (refer slide 16 & 17) Living Benefits Hotline 0860555992 still available 24/7. (refer slide 18) Do not call the Living Benefits number for Burial queries

  14. CASH BENEFITS • Cash benefit as follows: • Main member – R20,000 • Spouse – R20,000 • Insured Children (no limit): • Aged 14 > - R20,000 • Aged > 6 but < 14 – R15,000 • Aged < 6 and stillborn – R5,000

  15. FUNERAL SUPPORT SERVICES THE SERVICE PROVIDES PRACTICAL HELP: • Assistance and advice on claims procedures. • Legal assistance regarding funeral procedures, e.g. death, certificate, removal of body, etc. • Advice on the handling of all necessary documentation, such as obtaining a death certificate and cross-border documentation. • Assistance finding a tombstone provider. • Referral to a pathologist if necessary, as well as reputable undertakers and providers of other funeral services. This service is available 24hrs a day 7 days a week: Call 0860 000 500 Or +27 (0)11 745 9134 if dialling from outside South Africa. As a member of an Old Mutual Group Life or Family Cover policy, you and your immediate family qualify for the Funeral Support Service – at no extra cost.

  16. FUNERAL SUPPORT SERVICES This service is available 24hrs a day 7 days a week: Call 0860 000 500 Or +27 (0)11 745 9134 if dialling from outside South Africa. WHEN CALLING, PLEASE MAKE SURE THAT YOU HAVE THE FOLLOWING DETAILS: • The scheme number. • The name and identity number or date of birth of the deceased. • The name and identity number or date of birth of the main member. • Where the deceased is not the main member, proof of relationship is required. As a member of an Old Mutual Group Life or Family Cover policy, you and your immediate family qualify for the Funeral Support Service – at no extra cost.

  17. NAC LIVING BENEFITS Below is a representation of calls made to the Living Benefits Hotline 0860555992and actual cases registered for the last six months:

  18. PROCEDURE AT TIME OF DEATH NATURAL DEATH AT HOME – Doctor or Paramedic must certify death. SAPS must then be notified to issue a clearance before the undertaker can proceed with the removal. The family will make the necessary arrangements. DEATH IN HOSPITAL – undertaker obtains certification of death from hospital. DEATH BY UNNATURAL CAUSE – summon police for removal of body.

  19. PROCEDURE AT TIME OF DEATH (CONT.) Request undertaker to remove body. Rector, Priest or Co-Ordinator to complete deceased notification form in consultation with member. Member goes to undertaker with the deceased notification form as well as ID or birth certificate of the deceased.

  20. PROCEDURE AT DEATH (CONT.) Member completes Old Mutual claim form. Member submits claim form together with all required documentation to Old Mutual. Old Mutual pays out cash benefit within 48 hours after documents and claim forms are received and approved. Undertaker confirms arrangements with family and rector. Funeral date and time announced by Rector only after family has confirmed with undertaker.

  21. DOCUMENTATION REQUIRED ! Certified copy of ID document of deceased Police report for unnatural/accidental death Notification of death/stillborn (DHA 1663/BI 1663) Certified copy of Death Certificate Bank statement of beneficiary Certified copy of beneficiary’s ID Certified copy of Marriage certificate; or Certified copy of unabridged birth certificate All forms will be available on MIS and NAC Web-site

  22. ROLE OF THE BURIAL CO-ORDINATOR • Member pays Burial Co-Ordinator in congregation. • Co-Ordinator issues member a receipt. • Co-Ordinator assist member with completing forms: • New Application Form • Deceased Notification Form • Old Mutual Claim Form • All forms will be available electronically via MIS, NAC website as well as email request

  23. ROLE OF THE UNDERTAKER FROM 1 JULY 2019 Previously, the Fund settled account with undertaker. In future undertaker will be paid by member. Members will receive cash benefit - they can then negotiate and arrange funeral with undertaker of their choice. Contracted undertakers who have delivered good service to members of the Fund will continue to enjoy the benefits of past association with the Fund. Association will now be on a non-contractual basis.

  24. SUMMARY

  25. SUMMARY (cont.)

  26. SUMMARY (cont.)

  27. CLOSING Presentation will be available on the web-site and MIS We are committed to assist with this transition. Rectors and burial coordinators are encouraged to educate members. The Fund acknowledges the sacrifices of all involved and takes this opportunity to thank you!

  28. CLOSING E-MAIL QUERIES TO: burial@nac-sa.org.za

  29. END OF PRESENTATION

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