All you want to know about
Cessions
Beneficiaries
Nominations and
Nominees
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Cessions
A cession is the transfer of a policy from one person to another. A policy can be ceded in two ways:
Outright cession
In this case, all rights in terms of the policy are transferred to the new owner (cessionary). The proceeds of the policy are paid directly to the cessionary and not to the previous owner or his/her estate.Collateral security cession
In this type of cession, the policy serves as security for a loan, for example. The cessionary's claim to the policy is limited to the amount of the cedent's liability.
A cession can contain certain limiting conditions that restrict the cessionary's contractual capacity in respect of the ceded policy. Although the cedent cedes the rights, he or she wants them back after a certain event has taken place.
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Cessionary
In the case of an outright cession, the cessionary is the person or institution receiving the right of ownership to the policy. In the case of a collateral security cession, the cessionary's interest is recorded by Sanlam Namibia in accordance with the information received from the person or institution.Cedent
In the case of an outright cession, the cedent is the person or institution transferring the right of ownership to the policy. In the case of a collateral security cession, the cedent remains the owner of the policy, but with limited contractual capacity.Event
This term refers to eventualities such as a policy maturing before the cedent's death, a cedent dying before the cessionary, or a divorce between the cessionary and the cedent.
Beneficiaries
A beneficiary is a person nominated by the policy-owner to receive the death benefit at the death of the life assured. Nominating a beneficiary to the death benefits under a policy is valid only if a nomination form has been completed, signed and received at a Sanlam Namibia office in accordance with the information received from the person or institution.
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Death benefit
Benefits at the death of the life assured.Life assured
The person whose life is assured and at whose death the death benefits of the policy are paid out.
Nominations
Where the owner of a policy is not also the life assured under that policy, he or she may nominate a person to become the owner of that policy after his or her death. The nomination is valid only if a nomination form, duly completed and signed, has been received at a Sanlam Namibia office before the policy-owner's death. In this way, previous nominations, if any, are replaced. You may obtain such a form from your nearest Sanlam Namibia office.
Nominees
A member of the fund in question may nominate a person to whom the benefits may be paid after the trustee of the fund (the fund is the owner of the policy) has exercised his or her discretion in that regard. The nomination is valid only if a nomination form, duly completed and signed, is in the possession of the fund at a Sanlam Namibia office before the member's death. You may obtain such a form from your nearest Sanlam Namibia office.
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