What a spouse is entitled to

LIFE COVER: HOW THINGS WILL PLAY OUT

- Hannah Myburgh

» Expert offers help to surviving partner on entitlement to payout.

The question: If I die, is my spouse automatically entitled to 50% of my life cover payout because we are married in community of property?

Or would this only apply if I do not have nominated beneficiaries on my life cover and it gets paid into my estate, of which my spouse would then be entitled to half of it?

The answer: When it comes to life insurance payouts in South Africa, many people are uncertain about how marital regimes, particularly being married in community of property, affect the distribution of these funds.

The key factors to take into consideration here are (a) whether beneficiaries have been nominated on the policy, and (b) the legal implication of the marriage contract. Let's unpack.

Life insurance and beneficiary nomination