OPTIONAL INSURED DEATH BENEFIT
In addition to the member share payable on death in service, you may choose to be covered for a lump sum payment equal to a multiple of your annual pensionable salary or you may choose not to have any insured death cover.
We realise that our members face different social circumstances and therefore the Fund gives you the option to choose the amount of cover that best suits your needs and budget by allowing you to select the level of death cover (based on a multiple of your annual pensionable salary) according to your current age as per the table below.
Multiple of annual pensionable salary (APS)
Younger than 40
0 (No Cover)
0 (No Cover)
0 (No Cover)
Aged 55 - 75
0 (No Cover)
If your pensionable salary is R25 000pm and you elect 5 times annual pensionable salary you will be covered for an amount of
An automatic default is applied in the event that you do not select your choice on your new member application form. The default is as follows:
You will automatically be moved to the next age band on 1 July following your attainment of age 40, 50 and 55 (whichever is applicable).
A special dispensation applies to members prior to 1 September 2017. Click here for more information.
If you have selected the Optional Insured Death Benefit, you automatically qualify for the family assistance benefit from Momentum. Click here for more.
What is the cost of the death benefit cover?
The premium for your death benefit insurance cover is based on your age and the amount of death cover selected (i.e. the multiple of annual pensionable earnings chosen). The general principles are that the insurance premium for younger members is lower than for older members and the higher the multiple chosen, the more the cost. Each age band has its own unit rate which is expressed as R/cents per R1000 cover.
Cents per R1 000 cover (unit) from 1 July 2023
|Younger than 30|
|Age 30 - 39|
|Age 40 - 49|
|Age 50 - 54|
|Age 55 - 64|
|Age 65 - 69|
|Age 70 - 75|
|Death benefits example: A member is 29 years old and earns an annual pensionable salary of R400 000. The member chooses cover of 2 X their annual pensionable salary = R800 000 cover |
Calculation: R800 000 x 20.52 (unit rate) / 1000 = R164.00 p.m. Premium to be deducted from the employer’s portion of the contribution towards the Fund.
For this member, the annual premium equates to a rate of 0.492% of their annual pensionable salary.
Summary of the structure of the death benefit and how it works
The death benefit cover is designed to offer the appropriate amount of insurance at the ages where it is expected to be most required. All members under the age of 55 can access as much as 5 times annual pensionable salary as death cover (6 times between the ages of 40 and 50).
As you get older the value of your Member Share in the Fund, which is also payable at death, increases. With the increase in your Member Share, the need for death benefit insurance is likely to reduce. For this reason the maximum death cover is two times annual salary for members older than 55.
Following insurance principles, as you get older the premium for the same level of death benefit insurance increases.
Take time when joining the Fund to make the appropriate selection. Future changes are allowed, especially for specific life events, but routine annual increases in cover are likely to be subject to various conditions.
At any time – effective 1 July each year – you may reduce the level of your death benefit insurance as a way to manage both the cost of the benefit and your need for cover. You may also choose to increase your level of cover but this may be subject to medical underwriting.58