What are the issues involved with insuring adult children?
Most funeral plans allow you to insure adult children up until they are twenty-one. And in special cases, to twenty-six or twenty-seven years of age.
There are, however, rules in place that you need to check. For example, is a child covered if they are working and within the age group? Usually not. But, if they are a full-time student at college and they die, there is a chance they are still insured.
What happens if your child decides to take a year off from college and dies? That could make their cover invalid in terms of the policy. Once they have re-registered, it could be reinstated.
What could Happen if you Insure adult Children and They pass On
This is a case that was brought to the Ombudsman for a ruling.
The deceased was studying towards his degree for the last four years. He planned to register for his final year. He died in a car accident just before registrations were open. The claim was sent in with the child’s academic record.
The college where he studied confirmed that registrations were not yet open at the time of his death. The insurer declined the claim on the basis that the child was not officially registered when he died.
What the Ombudsman Said
The Ombudsman asked the insurer to re-evaluate the matter. They said it was likely that the child would have registered for the next academic year if he had survived. The insurer stood firm in their position. They stated that there was no clear way to tell that the child would have registered.
The Ombudsman looked into the academic record of the child. They also consulted with the college about the child’s chances of being allowed to register for the next year.
The college confirmed that while the student had been a regular one, he would not have been admitted that year because of his marks. Taking all of this information into account, the Ombudsman ruled in favour of the insurance company.
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