Many members don’t realise that they have built-in life cover through their employer’s retirement fund, and that it’s often one of the most cost-effective ways to be insured. Typically, this cover works as follows:

• The benefit is often calculated as a multiple of your annual salary (for example, 2x, 3x or more).
• The cost is included as part of your contribution to the retirement fund.
• You are covered while you are actively contributing to the fund.

In the unfortunate event of your passing, the fund pays a lump sum benefit. This benefit is intended to support your financial dependents and help replace lost income.

One important aspect that’s often misunderstood is how the benefit is distributed. While you nominate beneficiaries, the fund trustees are legally required to allocate the benefit in a way that fairly considers all beneficiaries, including factual and legal dependents, and nominees.

As a member of a retirement fund, you are encouraged to:

• Keep your beneficiary nominations updated.
• Make sure your dependents are clearly identified.
• Understand how much cover you have through your retirement fund.

Knowing what’s in place gives you a much clearer picture of whether you need additional personal cover outside the fund.

Coming Soon: Update Your Beneficiaries on WhatsApp

From3 August, you'll be able to nominate or update your retirement fund beneficiaries directly through the NMG Benefits WhatsApp channel.

The process is secure, simple, and takes less than five minutes to complete.

Keeping your beneficiary nomination up to date helps ensure your wishes are recorded and can assist the trustees when distributing your retirement fund death benefit. Whether your circumstances have changed or it's simply time for a review, updating your beneficiaries is an important part of your financial planning.

Look out for more information when this new feature launches on 3 August.