Unfair penalty

Good Morning All

To whom it may concern

I am writing to express my deep frustration and disappointment with the handling of my funeral policy claim by Old Mutual.

I am the policyholder of a funeral policy that I took out in 2012, which covered my late ex-husband. After many years of maintaining this policy in good standing, my ex-husband and I divorced in 2024. Following the divorce, I personally went to an Old Mutual branch to update my policy details, including changing the beneficiary. During this visit, I clearly informed the consultant assisting me that I was divorced.

Despite disclosing this, I was never advised that my ex-husband’s cover under the “spouse” category would be affected or invalidated, nor was I guided to make any further changes to the policy. The consultant proceeded without raising any concerns, and my policy remained active, with premiums continuing to be paid.

My ex-husband sadly passed away on 1 October 2025. When I submitted a claim after his passing, it was rejected on the basis of the divorce — information that I had already disclosed to Old Mutual prior to his death. This is both unfair and unacceptable, as I re**** on the consultant’s guidance and acted in good faith at all times.

I was further requested to provide proof that I contributed to the funeral expenses. I comp**** and submitted evidence showing that I paid for catering, with funds coming directly from my personal bank account.

To make matters worse, after raising concerns about the inconvenience and poor service I experienced, I was offered R500 as compensation for transport costs. This offer is inappropriate and dismissive, considering the seriousness of this matter and the financial and emotional strain placed on my family.

Old Mutual has since stated that they are still “investigating” the matter. However, it has now been several months since my claim was submitted, and the only “proof” provided to me is a spreadsheet alleging that an email was sent outlining that no payout would be made in the event of divorce. This is not sufficient proof. I have not been provided with the actual communication, nor any confirmation that such information was clearly and directly communicated to me.

Furthermore, my late ex-husband and I share children, and he continued to support them financially. The purpose of this policy, which I have maintained since 2012, was to provide support in circumstances such as these, yet I am being denied assistance despite acting transparently and fulfilling my obligations as a policyholder.

This matter has already been escalated to the Ombudsman for Long-term Insurance, who is currently awaiting a response from Old Mutual. The continued delays and lack of clear communication are unacceptable.

I am requesting that Old Mutual urgently finalise this investigation, provide proper and verifiable proof of all claims made, and reassess my claim fairly, taking into account the failure of your consultant to properly advise me at the time I disclosed my divorce.

I expect accountability, transparency, and a fair resolution to this matter.

Kind regards, Mrs. MC Modiselle