Employee benefits include retirement and risk benefits such as group life assurance (GLA) and disability cover. Among the many benefits available, members of retirement funds can also access legal insurance to take care of their legal needs such as drafting wills or setting up trusts. In this week’s article, I sit down with Relebohile Seshemane Kalake, Head of Employee Benefits at Alliance Insurance Company to discuss how members can benefit from legal insurance.
TKay: Members of retirement funds have a legal insurance benefit. Talk us through this offering.
‘M’e Relebohile: From an employee benefits perspective, we have this new legal benefit embedded into our Group Life Assurance (GLA). The reason behind this new product is that members are struggling in terms of their estate planning, with making proper beneficiary nominations when it comes to their pension benefits or their personal assets. As such we thought it a good idea to embed legal insurance in the GLA which seeks to look after your dependents once you are no longer here. These services are offered for free through our GLA.
TKay: In my interview with Ntate Lekhooa Montši, Head of Retail at Alliance Insurance, he mentioned that legal insurance also provides free marital counselling benefits. Does this apply to members of retirement funds?
‘M’e Relebohile: We only have will drafting and legal advice because our perspective is mainly to ensure that members’ benefits and assets are taken care of. For example, if a member is looking to buy a site, he/she must make sure that the site they are buying is the correct one. Through legal insurance, we assist members with the process, and deed transfers with the Lesotho Land Authority (LAA) and ensure the site is allocated correctly to you.
TKay: Why is it important for members of retirement funds to update their beneficiary nominations?
‘M’e Relebohile: It is very important for members to update their beneficiary nomination forms because the law requires, they do. However, it also goes back to your estate planning because the benefits you are receiving from your employer i.e., GLA and retirement benefits need to take care of your dependents when you are no longer here. Culturally, the family would appoint an heir who will take care of your estate, who may not always have your best interests or know what you wanted for your minor children. By completing your beneficiary nomination form, you can allocate whatever you have accrued from your employer according to your needs. If you do not update your beneficiary nomination, your funds will end up in the wrong hands and your dependents and children end up suffering.
TKay: For new or prospective employers who want to provide benefits for their employees, how do they go about that?
‘M’e Relebohile: I would encourage all employers to take up retirement fund solutions and risk benefits for their employees as a retention strategy.We have a new business department that will assist. Alternatively, you can us an e-mail or contact your broker if you have one. Where you do not have a broker, you can contact us directly at offices, call or visit our website at www.alliance.co.ls You can also watch or listen to the full video interview and podcast on Money Adventure – Leruo TV edition on YouTube, Spotify and Apple Podcast hosted by Tokiso TKay Nthebe. Likhomo!
