This type of coverage are the most straightforward of all life insurance policies. As a limited life insurance policy, AD&D insurance will cover your death if it is solely in result of an accident.

Subject to terms and condition of claims, company will pay the Accidental Death Benefit Sum Insured as a single lump sum if the relevant Life Insured dies as a direct result of an accident, provided that the death occurs within 30 days of the Claim Event and the Claim Event occurs before the Life Insured’s 70th birthday. Some insurance companies will pay a reduced sum insured (say 50%), if the death occurs at a higher age until the policy expires.

Some life insurance companies will also double the amount of your coverage in the event the accidental death occurs on a commercial carrier like airlines or trains.

These policies also pay out various amounts of the benefit if you obtain an accident based disability that causes loss of limb, eyesight, or ability to move.

The Life Insured sustains bodily injuries before age 70 solely, directly and independently of all other causes through external, violent, visible and accidental means and within 30 days of sustaining those injuries, suffers the loss of sight or limb as a direct result of those injuries, Company will pay the following percentage of the dismemberment Sum Insured, as long as the Life Insured survives the injuries and is alive 30 days after the event that caused the injuries:

Loss of hand or foot means the loss by physical severance at or above the wrist or ankle joints respectively and loss of sight means total and irrecoverable loss of sight.

The maximum amount payable, whether as a result of one claim or more, cannot exceed 100% of the Dismemberment Benefit Sum Insured.

The Accidental Death Benefit and Dismemberment Sum Insured is shown in your Policy Schedule.

The Company will not pay an Accidental Death Benefit claim in the event of

• Participation in or training for any dangerous or hazardous sport or competition or riding or diving in any form of race or competition and involvement in a war;
• aviation, gliding or any other form of aerial flight other than as a fare paying passenger of a recognized airline or charter service;
• Typical exclusions of AD&D coverage include death during surgery, resulting from a mental or physical illness, bacterial infection, hernia, or a drug overdose.
• Death by illness, suicide, non-commercial radiation, war injury, and natural causes are generally not covered by AD&D.
• Similarly, death while under the influence of any non-prescribed drugs or alcohol is most likely exempt from coverage.
• Overdose with toxic or poisonous substances and injury of an athlete during a professional sporting event may void the right to claim too.

Exclusions applying to all Benefits:

In all cases, company will not pay a claim if the Policy ended or the Benefit ended before the Claim Event took place.
Company will not pay a claim if it is directly or indirectly attributable to:

• The Life Insured knowingly or recklessly failing to disclose or deliberately misrepresenting any fact when applying for the Policy, or an increase to the Policy, or for a reinstatement of the Policy or any Benefits on the Policy. The nondisclosure or misrepresentation is such that it would cause the company to:
• totally decline the Benefits applied for; or
• accept the Benefits applied for in whole or in part with an additional premium payable and/or an exclusion clause on certain Benefits; or
• accept Life Cover on some terms but to decline one or more Additional Benefits
• The Life Insured’s active involvement in:

Terrorism or conspiracy to commit terrorism which includes any activity that jeopardizes the continuance of human life or causes damage to property;

• War or warlike operations (whether war is declared or not);
• Invasion, hostilities, mutiny, riot, civil commotion, civil war, rebellion, insurrection or the usurping of government power;
• An act committed by a foreign enemy;
• Any activity (military or otherwise) or conspiracy that causes or leads to the proclamation of martial law or a state of siege.
•  The Life Insured committing suicide (whether sane or insane) within:
• 12 months of the risk commencement date; or
• 12 months of the date of re-instatement of the Policy; or
• 12 months of an increase in the Life Cover or Family Income Benefit Sum Insured, or
• 12 months of an addition of Family Income Benefit to the Policy.
• The Life Insured intentionally causing a self-inflicted injury or attempting suicide (whether sane or insane).
• A criminal act perpetrated by:
• The Life Insured; or
• The Policy Owner or any Beneficiary against the Life Insured.
• Addiction to, abuse or misuse of alcohol or non-prescribed drugs;
• Mental, nervous or psychiatric disorders, without demonstrable brain disease.

The Company will not pay a claim if the Claim Event:

• does not exactly meet the definition of the Benefit in this document, or
• occurred before the risk commencement date, or
• occurred before the Benefit was added to the Policy,
• or (for a Benefit increase), occurred before the date of the increase, or
• occurred before the Policy was reinstated, or
• Occurred before the completion of a qualifying period relevant to the Benefit being claimed,

Unless the medical condition was disclosed to, underwritten and accepted by the Company as part of the application, or an increase or in any reinstatement process.

When it comes to cheap life insurance, this type of coverage is the way to go if you are looking for the most cost effective protection. Since Accidental Death insurance covers the limited risk of death due to an accident and removes the need for health questions or exams, the cost for this coverage remains one of the best options for those looking to be covered at the lowest cost possible.

Accidental Death Benefit and the accompanying charge will stop at the earlier of a claim or the policy expires.

• As one of the cheapest life insurance options on the market, Accidental Death & Dismemberment Insurance gives you the protection and the high dollar payout for accidental death or disability.
• Perfect for everyone, this insurance gives piece of mind when people need it the most.

The complete information given above is only general in nature . The terms and conditions vary from product to product and company to company. You should read and understand the terms and conditions of each product of every company before taking a decision. We are not responsible to the errors and omissions made by any customer on making a decision for buying a product after reading the contents of this website.

It can be purchased as a standalone Insurance policy (Accidental Death & Dismemberment (AD&D) Insurance) or can be bought as a rider attached to a life insurance policy.

Who should buy a standalone Accidental Death & Dismemberment Insurance Policy?

You probably don’t want to think about the fact that you could be killed or seriously injured in an accident. Who would? It’s an extremely unpleasant thought.

The reality is, it’s better to be safe than sorry, especially when it comes to providing for those left behind. The staggering statistics of accidents tell us that anyone and everyone can benefit from having an accidental death benefit policy on top of a standard life insurance policy.

Alternatively, if your current health, occupation, or any other factors prevent you from qualifying for a standard life insurance policy, a guaranteed issue standalone accidental death benefit policy can offer some protection over having no insurance at all. It is certainly an option to consider if the situation applies to you.

Furthermore, if you need a policy quickly, accidental death benefit insurance might be the way to go. Let’s say you are going to be traveling and you are concerned about the potential of a plane crash or any situation that would fall under an accidental death actually happening. You’re not planning for it, but again, it’s better to be safe than sorry. Rather than applying for a traditional life insurance policy that could take some time to acquire, an accidental death benefit policy would be far quicker to get—typically the same day.

And lastly, an accidental death benefit policy is less expensive than a traditional life insurance policy.

Who Needs Accidental Death and Dismemberment Insurance?

Accidental Death & Dismemberment (AD&D) Insurance Protects Your Life from Everyday Risks at the Lowest Prices
Because accidents can happen at any time, this type of coverage works for just about every single person from every walk of life. 

Ages 18-25: When it comes to the probability of death, young adults are most at risk for death by accident than by natural causes. While this age group rarely has dependents, their death may still have a significant financial impact and an accidental death policy provides a cheap life insurance option for covering potential medical bills and final expense due to an end of life situation.

Ages 25-35: As many in this demographic are beginning careers and potentially starting families, an AD&D policy can give an extra level of protection to ensure the financial certainty of any dependents at an affordable rate. Many employers offer this type of coverage as part of the overall benefits package; however, it is important that consumers realize that these types of policies end when employment ends and should invest in their own coverage.

Ages 35-55: Accidental death coverage provides a great add on to a customer’s overall financial plan, especially if there is a large amount of travel involved. Death while traveling may be a rare issue, that isn’t to say it cannot happen and investing an extra couple of dollars a month to cover the increased costs related to an accidental death may make sense.
These types of policies work well for everyone, even those who currently own a life insurance policy.

Accidental Death and Dismemberment (AD&D) insurance provides a benefit in the case of accidental death or certain specific injuries, such as loss of limb, eyesight, or hearing. Here's a breakdown of the claim process and the checklist associated with an AD&D insurance policy:

The Claim Process of AD&D Insurance:

• Immediate Notification: It's essential to notify the insurance company as soon as possible after the accident. In the case of death, the beneficiary or a representative will do this, while for dismemberment, the insured person can initiate the claim.
• Collection of Necessary Documents: Gather all documents that the insurance company will require to process the claim.
• Document Submission: Submit the gathered documents to the insurance company to formally initiate the claim.
• Insurance Company's Investigation: The insurer will conduct a thorough investigation to ascertain that the accident and/or injury fits within the policy's definition of an accident. This is crucial since not all accidents may be covered.
• Claim Decision:
  • Approval: If the insurer determines that the claim is valid, they'll approve it and proceed with the payout process.
  • Denial: If there's a discrepancy, or if the nature of the accident is an exclusion in the policy, the insurer may deny the claim. The insurer should provide reasons for the denial.

• Claim Form: Usually provided by the insurance company, this form needs to be filled out by the claimant or the beneficiary in case of death.
• Death Certificate: Required for accidental death claims, this should be an official copy as issued by relevant authorities.
• Medical Reports: Detailed medical reports explaining the nature and extent of the injury, especially for dismemberment claims.
• Police Report: If the accident was of a nature that warranted police involvement, such as a traffic accident, a detailed police report would be required.
• Eyewitness Statements: Statements from people who witnessed the accident can sometimes strengthen the claim, especially if the circumstances of the accident are in question.
• Photographic Evidence: Pictures of the accident scene or injuries can be beneficial, depending on the nature of the accident.
• Other Relevant Documentation: Depending on the type and cause of the accident, other documents might be required, such as vehicle repair bills, workplace accident reports, etc.
• Proof of Relationship and Identity: For beneficiaries making a death claim, proof of their relationship to the deceased and their identity, such as birth or marriage certificates, may be required.

The life assured is covered against the risk of an unexpected death (natural or accidental during the policy period. In case the life assured die during the policy period, the insurance company pays the sum assured to the nominee as mentioned in the policy document. 

The payout of the sum assured can be a lump sum or lump sum and monthly income or only monthly income as opted at time of buying.

• Annual renewable term offers a guarantee of future insurability for a set period of years through your term life policy and premiums that are paid annually instead of monthly. However, as you age your premiums will increase yearly. This is why it is designed for short-term insurance needs.
• A pro is that your policy is renewable so it won’t just disappear if your term length ends and this is great for those not really looking for long-term coverage or for those who don’t really know if they need it so they just pay year by year. If you have a mortgage to pay off if you pass away, ART gives you affordable asset protection.
• Annually renewable term life insurance has a big downfall for most consumers and that is the fact that every year after the initial couple premiums they raise tremendously. Some may agree that after a certain couple of years renewing is cost prohibitive.

• Lower Initial Premiums: At first, the premiums are low and this is what first attracts people to annual renewable term. However, they will rise with each year that passes because you will be older and your chance of passing away, statistically, will have increased.
• Life Cover Remains Unchanged: Much like other types of insurance, the death benefit paid to the life insurance beneficiary will remain the same throughout the policy. That is not the case with decreasing term, where the face amount decreases over the policy’s life.

It should be noted that you will have a ‘schedule of premiums’ for your policy. Above all else, this means that the insurer cannot increase your premium to whatever amount they fancy. As a chart from the insurance carrier, this will explain the maximum you can expect to pay each year so the insurer will never go above this amount, which removes the potential shock that can come from increased premiums.

Additionally, there may be an opportunity to add life insurance riders to your policy depending on which provider you choose.
An accelerated death benefit is typically included with most carriers.

You could add a disability waiver of premium rider which ensures that your premium is covered if you aren’t in a position to pay it yourself due to a disability or severe injury.

With the option of having riders within your policy, you might have to pay a little more but you will have the added protection which can be useful.

Annual Renewable Term vs Level Term Life Insurance

Within the marketplace, level term is the more popular of the two types of term life insurance. This is primarily because of one huge difference – with level term plans, your premiums will remain exactly the same year after year.

If you were to buy 25 year term life insurance, for example, your premiums will be the same in the last year as they were in the very first. With ART insurance plans, you will have seen many increases in the same time period so will be paying very different amounts at the end of your policy that that of the beginning.

Well, why would anyone choose ART over level term?’

The answer is simple - level term insurance plans are generally more expensive at first.

Overall, annual renewable term policies start cheaper than level term policies but they cross somewhere during the term and become more expensive.

Therefore, you need to weigh your options and see just how different the opening quotes are. If you only plan to have the policy in place for a short amount of time, you might find that ART works out cheaper than level term despite increasing every year.

Who Should Consider Annual Renewable Term Insurance?

Who should be looking towards this type of insurance? In truth, ART insurance should be considered by anyone who is looking for an immediate source of coverage as long as a longer form has been planned for the future or perhaps it isn’t even required in the future.

For example, you may have a debt that you need covering just in case you were to die or maybe you need life insurance as part of a divorce decree. If this debt or financial obligation will be paid in just a few years, ART is a good idea because you will only remain covered for the time you need.

Furthermore, annual renewable term insurance can also be useful if you are set to undertake a dangerous job for a set period of time. For example, the policy can remain in place while your risk of death is high before being removed once everything returns back to normal.

Whatever reason you may have for short-term insurance, you need to remember that you don’t really want it for longer than a couple of years. Although you will enjoy the affordable and even cheap payments at the beginning, the increase each year will soon pin you down and take a significant portion of your disposable income.

The life assured is covered against the risk of an unexpected death (natural or accidental) during the policy period. In case the life assured die during the policy period, the insurance company pays the sum assured to the nominee as mentioned in the policy document. 

The payout of the sum assured can be a lump sum or lump sum and monthly income or only monthly income as opted at time of buying.

It provides you with a “worst case” scenario option. In other words, if you have a term policy and you get sick or injured in a way that would prevent you from being insurable, you can convert to a policy without taking a medical exam or answering health questions and keep the life insurance coverage the rest of your life.

Price. There are many term life insurance pros but probably the most obvious is the initial low entry premium payments. Term life is “pure” death insurance, meaning there is no cash value accumulation. The main purpose of the policy is to pay a death benefit to the beneficiary named in the policy.

Income Tax Free. The next major advantage of term life insurance is the death benefit goes to the beneficiary income tax free. There are exceptions, such as when the policy names the estate of the deceased as the beneficiary, but the majority of the time life insurance is not taxed.

Flexible. Another advantage of term life is that the terms are flexible. You can choose coverage different term periods, such as annual renewable term, 5, 10, 15, 20, 25 and 30 years. And when the term of the policy ends, the policy is normally renewable on an annual basis.

Protects Insurability. The primary benefit of a conversion option attached to term life is that the insured can convert the policy without proof of insurability. Which means that you made the decision to get your life insured, that way, if you develop some type of health condition that would either make it impossible or cost prohibitive to purchase another policy, you can always convert your term policy to permanent coverage, regardless of your health condition.

For example, suppose you take out a 20 year term upon getting married. You have 2 kids by age 40. Unfortunately, at age 42 you develop a rare disease that will either cause you to be declined for additional coverage or will make your premiums cost prohibitive. The good news is you have convertible term life insurance, which allows you to exercise the option with the insurance company to keep your coverage for the rest of your life by converting the term policy to whole life or universal life.

Premiums are computed based on the age, sum assured, policy term and premium paying term of the plan. Premiums are determined at the plan inception and do not change afterwards.

When you convert your term to permanent coverage, the carrier uses your initial health class and your current age to determine your new premium for the permanent coverage.

Since your initial health class determines you conversion health class, you do not have to answer any questions regarding your health and lifestyle and you do not have to take a life insurance blood test or provide a urine sample.

Features

A great feature of convertible term life insurance is the ability to customize it for your particular situation and lifestyle with policy riders.

Additionally, there may be an opportunity to add life insurance riders to your policy depending on which provider you choose.

Term Conversion Rider

Convertible term life insurance is simply a term life insurance policy with a term conversion rider added on. Because term conversion riders are so common and usually automatically included, these policies are just referred to as a convertible term policy.
A term conversion rider allows you to convert your term life insurance policy to a permanent policy without having to go through underwriting or take another medical exam. A term policy may have been perfect for you when you were younger, but as you age, a permanent policy may fit your situation better.

This rider is built into most life insurance policies and is extremely beneficial if you happen to run into health issues as you age. Having the ability to convert your term policy to a permanent policy could mean the difference between having a term policy that runs out or one that could be converted with a claim being paid.

Disability Income Rider

The disability income rider provides a waiver of premium and a supplementary income if you were to become disabled.

The supplementary income is based typically on the face amount of your policy. Most insurance companies will place a limit on how much will be paid per month and on the length of time you will receive the benefit. This rider is very similar to a long-term disability insurance policy, but it can be conveniently added to your policy rather than you having to purchase it separately.

Long-Term Care Rider

A long-term care rider is similar to a long-term care insurance policy.

Money is taken from your death benefit to pay for your care if you become chronically ill and are unable to take care of yourself. You can use this benefit if you have to stay at a nursing home or receive home care.

With this rider, it’s important to keep in mind that the maximum benefit is typically only a percentage of the life insurance policy’s face amount and it is taken from your death benefit.

Critical Illness Rider

A critical illness rider will provide a lump-sum benefit to help cover medical expenses and other costs if you were to be diagnosed with a critical health condition.
This benefit is taken out of your death benefit and covers illnesses such as cancer, stroke, heart attack, coma, and others.

Medical expenses can add up quickly with a critical illness and many people don’t have an emergency fund large enough to cover these expenses. This is why you may opt to add a critical illness rider.

Accelerated Death Benefit Rider

The accelerated death benefit rider pays a portion of the death benefit to you (the insured) if you become terminally ill with a short life expectancy.

On most convertible term life insurance policies, this rider is included automatically (for free) or offered at a nominal cost. The policy states how much of the death benefit would be available before death and it’s usually capped at $250,000 to $500,000.

Child Rider

A child rider provides coverage should the death of a child occur.

While this tragedy would not result in loss of income, it could still bear financial hardship for a grieving family in regards to taking off work and funeral expenses.
This rider would provide financial assistance during a difficult time.

Once the child reaches the age of 25, the rider can be converted to an individual life insurance policy without an exam.

For a special needs child, who might not otherwise be insurable, the child rider is an essential addition for a parent who is buying a term life insurance policy. If you have a special needs child, do speak with our agents so that they can help you get the most protection for your child at the time of purchase.

Spousal Rider

The spousal rider allows you to add on life insurance to cover your spouse versus owning two separate life insurance policies. A spousal rider provides term coverage only for a specific period of time.

Term Rider

When purchasing insurance, you may add virtually any form of term insurance to a base permanent policy in the form of a term rider. This option would be beneficial to policy owners who have a temporary need in addition to their long-term need.

Guaranteed Insurability Rider

If added to the purchase of your convertible term life insurance policy, the guaranteed insurability rider (called an additional purchase option) guarantees your policy’s renewability at the end of its term. If you decide to renew your policy, you will not be required to provide additional proof of insurability.

This rider is useful if you want to purchase a permanent policy, but are unable to afford the premiums for large face amounts at that time or think you may need more coverage later in life.

This rider gives you the option to purchase additional coverage in the future without evidence of insurability.

Waiver of Premium Rider

A waiver of premium rider ensures that you would not need to pay the premiums on your life insurance policy should you become totally disabled and can’t work.

For most insurance companies, the disability needs to last six months or more before benefits begin. Some companies will reimburse the payments made during the six-month waiting period.

Unemployment Protection Rider

An unemployment protection rider ensures that you would not need to pay the premiums on your life insurance policy, if you would lose your job.

You need to show proof that you have been receiving unemployment benefits for four continuous weeks before benefits begin. With most insurance companies, this rider expires when you turn 65 years old.

Accidental Death Benefit Rider

The accidental death benefit rider (called a double indemnity rider) increases the death benefit, if you die as the result of an accident.

Sometimes this rider also includes additional payment for dismemberment; you would collect money if you lost a limb or your sight. Be aware that life insurers do consider your occupation and hobbies when determining these premiums.

Return of Premium Rider

With the return of premium rider, you pay higher life insurance premiums for the opportunity to get all of your money back if you live past the term on your life insurance policy.

There are many factors to consider when shopping for life insurance. The amount and type of life insurance you need depends on factors such as income, your dependents, debt, lifestyle, and how much risk you are willing to take.

We have covered here the most common types of life insurance riders, but this list is not exhaustive.

Life insurance is a very personal decision and should be determined thoughtfully.

Why Convert Your Term Life Insurance?

Cash Value. One huge benefit of a solid permanent life policy is the tax deferred cash value accumulation. Further, the cash can be used as collateral for a life insurance loan, either through the carrier or from a bank.

The cash in the policy earns dividends and interest. And when you couple this with paid up additions, you get a super charged banking policy perfect for practicing infinite banking.

And another great benefit is the cash value grows in a tax favored environment, with the final death benefit from your life insurance going to your beneficiary income tax free.

Estate Planning. Permanent coverage is important when you are looking to protect your estate through various strategies, including setting up an irrevocable trust. If your estate is subject to a state death tax, or it exceeds the 2018 federal estate tax limit of $11,200,000, having permanent coverage to help pay the tax bill is essential for passing your estate on to your heirs.

Business Planning. For the savvy older business owner, having a business succession plan in place is priority #1. Using life insurance to fund a buy sell agreement provides the needed liquidity to make sure the business can survive the loss of an owner.

In addition, using permanent coverage for key person insurance or to provide employee benefits can make or break a business.

Legacy Creation. Many of the high net worth clients we have worked with over the years who desire to leave a legacy use life insurance for wealth building. As mentioned above, the tax incentives provided under  uniquely position cash value life insurance as one of the greatest assets to own.

Life Settlement. If you still don’t see an advantage to converting your term policy, then consider a viatical settlement (A viatical settlement is an arrangement in which someone with a terminal disease sells his or her life insurance policy at a discount from its face value for ready cash. The buyer cashes in the full amount of the policy when the original owner dies. A viatical settlement is also referred to as a life settlement). Life insurance statistics show that 98% of term life expires worthless. If you are nearing the end of your term, consider converting your policy and selling it.

Bonus benefit. Another option if you don’t need the life insurance is to have your family pay for the premium once you have converted the term policy. It might make a great investment for your children if they help pay some or all of your premiums in order to get a death benefit one day.

Who Should Consider Convertible Term Life Insurance?

Although we are not fans of the mantra buy term and invest the difference, we do believe that a convertible term life insurance policy is appropriate in many situations and for many types of people.

Young Parents. If you are just starting out a family you may want to consider term life insurance with a conversion option if you are on a thin budget and your primary concern is income replacement.

New Business Owners. One of the main issues new business owners run into is cash flow. One way to keep initial costs low would be to choose convertible term life insurance initially. Then once the cash flow increases and the margins get a little more manageable, you can convert to permanent life insurance, which is far superior when structuring buy sell agreements.

Small Business Loans. Many small business loans require that the person taking out the loan have some sort of life insurance in place. The proceeds from the death benefit are collaterally assigned to the bank, with the remainder going to a named beneficiary. Rather than pay the larger price tag that goes along with permanent coverage, simply getting a term policy for the length of the loan should suffice. If you decide you prefer to keep the coverage, you can always exercise the conversion option and keep the coverage.

Convertible term life insurance can be a valuable tool in anyone’s wealth building tool box. The advantages of term life, coupled with the ability to convert to permanent coverage, provides you with peace of mind all around.

Convertible Term Insurance is a type of term life insurance that allows the policyholder to convert their term policy into a permanent (whole or universal) life insurance policy without undergoing a new medical exam. The ability to convert offers flexibility, especially if one's health changes or if there's a desire for lifelong coverage.

The Claim Process of Convertible Term Insurance:

• Notification of Death: The beneficiary or a representative must promptly notify the insurance company upon the death of the policyholder.
• Gather Necessary Documents: The beneficiary or their representative will gather all required documents for the claim.
• Document Submission: Submit these documents to the insurance company to start the claim process formally.
• Insurance Company Verification: The insurance company will review the submitted documents. If the policy was recently initiated or converted, the company might conduct an investigation, particularly during the contestability period, to ensure there's no fraud.
• Claim Decision: • Approval: If the insurer validates the claim, they will approve it and begin the disbursement process.
  • Denial: If there are discrepancies or exclusions related to the cause of death or policy terms, the claim might be denied. Reasons for the denial will be provided by the insurer.
  
• Payout: Upon approval, the insurance company will disburse the death benefit to the beneficiaries, often as a lump sum, unless alternative payment options were selected.

• Claim Form: Typically provided by the insurance company, this needs to be filled out by the beneficiary or the deceased's representative.
• Death Certificate: An official document issued by the relevant authorities confirming the death of the policyholder.
• Original Convertible Term Insurance Policy Document: The insurance policy document or a certified copy that contains the coverage terms and conditions.
• Proof of Identity and Relationship: This includes documents verifying the claimant's identity and their relationship to the deceased, such as birth or marriage certificates.
• Medical Records (if required): Depending on the circumstances of death and the insurance company's stipulations, they may request detailed medical records or information regarding the cause of death.
• Police Report (if applicable): If the death was due to an accident, crime, or under circumstances involving law enforcement, a comprehensive police report might be needed.
• Additional Documentation: Depending on the terms of the policy, the jurisdiction, or the death's nature, other documents might be required by the insurer, such as post-mortem reports, affidavits, or documentation pertaining to the death's circumstances.

• Provide you with life cover that will pay a cash sum if you die during the term of the policy.
• Pay you a cash sum if you are diagnosed with a critical illness during the policy term, if critical illness (CI) benefit is chosen.
• Pay you a cash sum if you become permanently and totally disabled during the policy term, if permanent and total disability (PTD) benefit is chosen.
• If waiver of premium (WOP) benefit is chosen, Company will waive your policy premiums if you are incapacitated for a period of at least 180 days through accident, long term illness

• Fixed term of years selected to match your mortgage.
• Sum assured decreased to reflect the outstanding loan amount each year.
•  Sum assured is paid out on death during the policy term.  
• No benefit on survival.
• No surrender value.
• Level premiums throughout the term of the policy.

• Low cost protection cover used in conjunction with a repayment mortgage. 
• Cover can be purchased with or without critical illness cover. 
• Normally includes terminal illness benefit as part of the standard policy.  
• Accepted by most major lenders as suitable cover for your mortgage.  
• Cover reduces to match the outstanding mortgage amount. Ideal for re-payment mortgages or loans.  
• Premiums guaranteed not to increase from acceptance for the policy term.

Make a single payment or pay all the regular payments over the full policy term, as outlined in your personalised illustration.

Choose a rate of interest at the outset which will be fixed throughout the policy term on which the company calculate the way your life cover reduces each year (and critical illness benefit and permanent and total disability benefit, if applicable). The premiums will depend on the chosen rate of interest.

Additionally, there may be an opportunity to add life insurance riders to your policy depending on which provider you choose.

Critical Illness Rider: Pay you a cash sum if you are diagnosed with a critical illness during the policy term, if critical illness (CI) benefit is chosen.

Permanent Total Disability Rider: Pay you a cash sum if you become permanently and totally disabled during the policy term, if permanent and total disability (PTD) benefit is chosen.

Waiver of Premium Benefit: If waiver of premium (WOP) benefit is chosen, the Company will waive your policy premiums if you are incapacitated for a period of at least 180 days through accident, long term illness or injury.

With the option of having riders within your policy, you might have to pay a little more but you will have the added protection which can be useful.

Level Term vs Decreasing Term Life Insurance

Who Should Consider Decreasing Term Insurance?

A decreasing term policy is primarily beneficial to young people who have a considerable amount on liabilities but do not expect to have them in the future.
This type of insurance tends to be an economical way to protect your beneficiaries should you die unexpectedly during a period when you have substantial financial responsibilities.

For example, young parents with a large mortgage might consider decreasing term policies to help insulate each other against the responsibility of meeting their financial obligations should something happen to one of them.

This type of insurance is normally taken out by people who are on a tighter budget than others. This is because payments on this type of insurance are normally a lot cheaper than level term insurance.

Family Income Benefit Insurance Policy covers:

• Regular Income: If the insured person passes away during the policy term, the policy provides a regular stream of income to the designated beneficiaries.
• Death Benefit: In addition to the income, a lump-sum death benefit might also be paid to the beneficiaries.

Extensions can include:

• Riders: Various riders can be added to the policy, such as critical illness, disability, or accidental death riders.
• Additional Coverage: Some policies allow for additional coverage, enhancing protection.

Exclusions might involve:

• Suicide Clause: As with other life insurance policies, there might be a suicide exclusion clause during the initial policy period.
• Fraud or Misrepresentation: Providing false or inaccurate information during the application process can lead to denied coverage.

The policy term for Family Income Benefit Insurance varies based on the chosen duration of the regular income payments. It can typically range from 10 to 30 years or more.

The sum insured is the amount that will be paid out as a regular income to beneficiaries upon the insured's death. It should be chosen based on the financial needs of the beneficiaries.

• Income Replacement: Family Income Benefit Insurance is particularly suitable for individuals who want to ensure their family's financial security by replacing lost income.
• Long-Term Commitment: Consistent premium payments are required over the policy term to maintain coverage and ensure the regular income stream.
• Premiums: Premiums for this type of insurance can vary based on the desired income amount and duration of payments.
• Tax Implications: The regular income payments are typically treated as tax-free.
• Review and Adjust: Periodic review of the policy ensures that the chosen income amount and duration remain aligned with beneficiaries' changing financial needs.

Family Income Benefit (FIB) is a type of term life insurance that, instead of paying out a lump sum upon the death of the policyholder, provides a regular monthly or annual income to the beneficiaries for the remaining term of the policy. It's designed to replace the lost income due to the policyholder's death, ensuring the family continues to receive financial support. 1)

• Notification of Death: Upon the death of the policyholder, the beneficiary or their representative should notify the insurance company without delay.
• Gather Required Documents: The beneficiary or the representative will assemble all necessary documents to support the claim.
• Document Submission: The relevant documents are then submitted to the insurance company to initiate the claim process.
• Verification by the Insurance Company: The insurer will assess the submitted documents. For newer policies or circumstances that raise concerns, they might conduct a more extensive investigation, especially during the contestability period.
• Claim Decision:
  • Approval: If the insurer validates the claim, they will begin the process of arranging the regular income payouts.
  • Denial: The claim might be denied if discrepancies are found, or if specific policy exclusions apply to the cause of death. The insurer will clarify the reasons for the denial.
• . Payout: Instead of a one-time lump sum, the beneficiaries will start receiving a regular income (monthly or annually) until the policy term expires.

• Claim Form: The beneficiary or representative needs to complete this form, typically provided by the insurance company.
• Death Certificate: An official copy confirming the death of the policyholder, issued by the relevant authorities.
• Original Family Income Benefit Policy Document: The original policy or a certified copy detailing the coverage terms and income schedule.
• Proof of Identity and Relationship: Documents like birth or marriage certificates that verify the claimant's identity and establish their relationship to the deceased.
• Medical Records (if required): Depending on the circumstances of death and the insurer's requirements, detailed medical records or information on the cause of death may be necessary.
• Police Report (if applicable): If the death occurred due to an accident, crime, or other situations involving law enforcement, a comprehensive police report might be needed.
• Additional Documentation: Depending on jurisdiction, policy terms, or nature of death, the insurer may request other specific documents, such as affidavits, post-mortem reports, or legal heir certificates.

Group Life – Death Settlements & Riders:

• Natural death – A lump sum benefit is payable following the death of the insured member due to sickness.
• Accidental death – A lump sum benefit is payable following the death of the insured member due to an accident.

Group Life – Living Settlements & Riders:

• Permanent Total Disability due to Sickness- A lump sum benefit payment not exceeding the basic sum assured following a sickness which permanently prohibits a member from undertaking either any or their usual occupation.
• Permanent Total Disability due to Accident – A lump sum benefit payment not exceeding the basic sum assured following an accident which permanently prohibits a member from undertaking either any or their usual occupation.
• Permanent Partial Disability due to Sickness – A lump sum payment following the impairment of a member due to loss of or loss of use of parts of the body as a result of the sickness.
• Permanent Partial Disability due to Accident – A lump sum payment following the impairment of a member due to loss of or loss of use of parts of the body as a result of an accident.
• Temporary Total Disability due to Sickness – A weekly payment designed to replace lost income following sickness, which temporarily prohibits a member from working.
• Temporary Total Disability due to Accident – A weekly payment designed to replace lost income following an accident, which temporarily prohibits a member from working.
• Accidental Medical Expenses – Reasonable and Customary medical expenses in the event of bodily injury as a result of an accident.
• Critical Illness – A lump sum payment if a member is diagnosed with one of the critical illnesses listed.
• Repatriation Expenses–Reasonable and customary actual expenses for transportation / burial of the mortal remains on the death of a member.
• WC benefits as a top-up of Group Life – Workmen compensation benefits according to the respective statutory requirements as a top-up of Group Life benefits.

• Master contract: the group life policy insures a number of people under one contract, typically eliminating the need for individual underwriting and evidence of insurability. The employer is the applicant and policyholder who chooses the insurance as well as the amount and type of coverage for the group's members. It is the employer and the insurer who are parties to the group life insurance contract. In considering a group for coverage, the insurer looks at the group's health as a whole, rather than by each individual. Experience rating sets the group's premium based upon its prior claims experience
• Flow of insureds: insured members enter and exit the group and coverage. The constant flow of lives keeps replenishing the group as old members leave with the resultant effect of continued stability of the group's age and health.
• Affordability: group life insurance is less expensive than individual coverage per unit of benefit. The reasons are two.
• Lower administrative, operational and selling expenses;
• Frequent employer cost sharing.

A plan may be

• Non-contributory: the employer pays the entire premium.
• Contributory: the employee is required to pay some portion of the premium.

Different Type of Group life policies

• Group Term Life Coverage: most group plans offer term life insurance coverage. Annual renewable term is the policy type, allowing the insurer to increase the premium annually based upon the insured group's experience rating. An advantage of annual renewable term is the lack of any required evidence of insurability.
• Group Permanent Life Coverage: less common is for group plans to offer a form of whole life coverage. The following paragraphs discuss the more common forms of group permanent coverage.

• Group Ordinary: such plans accumulate cash value which may or may not belong to the employee depending upon the plan rules. Forfeited cash value the employer may use to pay for remaining employees' coverage.
• Group Paid-Up: such arrangements combine term and whole life coverage as follows. The employer funds the term portion while the employee pays for the whole life piece. The sum of the coverages equates to the total amount of coverage to which employees are entitled. Upon separation from the company pursuant to termination or retirement, the employees own the policy.
• Universal Life: with this sort of arrangement, the employee pays most of the premium and has greater rights of policy ownership than with an ordinary term policy. The policy has the same features as individual universal life coverage.

An employer’s biggest asset is their people. Their ideas may fill their bank accounts but if it weren’t for the people executing their ideas, the magic wouldn’t happen. So, considering that, what better way to show your workforce how much you value them by purchasing a group scheme to support their well-being.

One of the most practical insurance policies available for large groups and their dependents is group insurance cover. It’s beneficial for both the employee and employer, with financial savings that are very attractive to business owners. This type of insurance will provide peace of mind for your employees, knowing that in the event that something had to happen to them or their families, they are covered.

Here are the benefits for both the employer and employee.

Employer advantages include:

It motivates employees: With medical expenses growing by the minute, many employees can’t keep up, let alone afford to purchase their own medical plan. Many companies don’t offer medical as a benefit, so if you’re a company that does, this alone will be something that will really motivate employees and push them to be more productive. Some individual policies require employees to reach great heights with their pay before being considered for a plan. But thankfully with group insurance schemes, all members qualify immediately.

Helps to retain employees: One of the most attractive benefits that any company can offer is a medical scheme. The more companies become employee-centric, the bigger the demand for health coverage will be. If you are looking to attract new and retain existing employees then this is a great way to make employees feel cared for and more committed to the company.

Low-cost prices: The bigger the group, the less it costs. Another perk with group cover is that it can be bought at a low or no-cost to the employee. For example, with insurance company AUL, they offer both short-and-long term insurance products at competitive rates.

Easy payment options: With all things medical, things start becoming a lot more technical. At least with group insurance cover, the employer can choose to pay the amount monthly, quarterly or yearly as per their convenience. This eliminates the admin hassle for employees.

Tax benefits: When a company purchases a policy that benefits their workforce, they get tax benefits on it. Not only does this reduce their tax liability but it’s a great company investment.

Employee advantages include:

It provides default insurance cost: Everyone in a group cover will get insured, but the amount of default insurance you are entitled to depend on your age and occupation. It’s a great thing for newcomers and long-standing employees who don’t have insurance because they are automatically covered simply by being part of the group.

It offers support, even during a claim: Group insurance covers you no matter the health condition you’re in. For example, if you have chronic health issues that usually bump up your payment in individual policies, with group cover, you get a low, fixed rate no matter your state. This policy also allows you to sign-up for a medical claim.

There is no medical check-up required: Many individual cover schemes require you to undergo in-depth medical examinations before being told whether or not a company is prepared to cover you. When it comes to a group health insurance, you don’t need to undergo a medical checkup or submit medical reports to get enrolled in a group health plan.

Immediate maternity coverage: This is something that is very attractive for soon-to-be moms. Maternity expenses are covered by the group health cover with immediate maternity benefits.

No waiting period: As previously mentioned, there is no waiting period for your policy. You do not have to worry about waiting a few months before your coverage kicks in. It’s effective from the day that your company signs up for it.

Beneficial for employee’s wellbeing: Group health insurance policies are a great way for employers to look after their teams’ wellbeing and support those and their families that cannot afford to pay for medical plans or any expenses linked to health. A healthy team is a productive team and the more you stress this, the happier and more motivated your team will be.

Apart from just the standard cover offered in group policies, there are other riders that can be added to your payment, like dental, critical illness and more. For smaller groups, this is more beneficial because it will allow employees and their families, even more, cover but with bigger groups, it becomes pricey.

As a result, group insurance is a beneficial, cost-effective and hassle-free insurance solution for employers who are looking to help their team with at least a minimum medical cover. It is, however, important to consider an individual plan in addition, since this plan will terminate if you leave the company.

Individual Life Insurance vs. Group Life Insurance

The premium charged for each group member is based on the average age and sex of all members of the group. This premium rate is then applied to the amount of coverage applicable to each individual group member. Unlike individual insurance plans, group premium rates are not personalized according to the age, sex, and health of each individual plan member.

Why employers should consider providing this benefit to their staff?
Attract the best talent

In a competitive employment market, companies of all sizes need to find ways to attract the best talent to their organisation and keep them there. Employee benefits are an excellent way to do this; by providing valuable benefits to employees at a low cost to the employer.
By buying benefits in bulk like this, the cost per employee is cheaper than if employees were to buy benefits themselves on the high street. They therefore attach a higher value to the benefit than it costs the employer to provide.

Group life insurance is seen as a foundation employee benefit, and is one of the most highly valued by employees. Employees rate group life insurance in their top employee benefits – second only to health insurance in popularity.

Most large companies already provide group life insurance to their staff. Yet despite the fact that SMEs need to compete with these companies to attract the best talent. This puts SMEs at a serious disadvantage as employees moving from a larger employer are likely to lose this valued workplace benefit.

Employee peace of mind

Money worries can be a distraction and source of stress to employees and this can impact on their focus at work. Research by MetLife, showed that one in three employees are distracted at work by financial concerns following death or disability. Benefits that provide financial security, such as group life insurance, can help to mitigate those worries and uncertainty and focus your employees on the job at hand. A focused employee is likely to be a productive employee. They are more likely to look favourably on their employer too for providing them with this security.

It’s cheap. Per employee cost is typically much lower than employees would pay if they bought it directly, so they value it higher than the actual cost to the employer.

It’s a natural complement to pension saving, and the ideal starter employee benefit. With all companies now required to set up a workplace pension, life insurance provides financial security pre-retirement when pension savings are small.

Additional support services, such as bereavement counselling are often available. Providing emotional support in addition to the core insurance, these services provide an important source of support, free of charge.

Employees do not need to answer any medical questions. As the insurance covers all employees in the organisation, or within a clearly defined group or management grade, in most cases individual employees do not need to complete medical questions.

It’s tax efficient. The premiums paid by the employer are not treated as a part of salary for employees, so there is no tax charge. The premium payment is considered a business expense for corporation tax purposes. Claim payments are paid to a discretionary trust, so there is no inheritance tax charge for employees.

It’s simple to administer. Once set up, the employer only needs to provide routine membership data to the insurer a few times a year at most. With Ellipse, all policies are administered online for additional convenience.

Employee benefits are a great way to attract and retain the best staff. Group life insurance is one of the most popular and valued benefits. It is easy to set up and the cover is cheap to buy, so it makes for an ideal starter employee benefit. Most employees are covered automatically, claim payments are tax free and it's simple to manage and administer the policy.

Group Life Term Plan provides life insurance coverage to a group of people, typically employees of a company, members of a society, or holders of a common interest. These policies are generally more affordable than individual policies and are often provided as a part of employee benefits.

The Claim Process of Group Life Term Plan:

• Notification of Death: The death of the insured person should be promptly reported to the HR or administrative department of the organization (if facilitated by the employer), who will then notify the insurance provider.
• Gather Required Documents: The claimant (usually a nominated beneficiary or family member) will need to gather all required documents for the claim.
• Document Submission: The claimant submits the documents to the insurance company or the HR/administrative department, depending on the established process.
• Verification by the Insurance Company: The insurer reviews the documents and, if necessary, may investigate further, especially if the policy is new or if there are suspicious circumstances.
• Claim Decision:
  • Approval: If the claim is valid and all documents are in order, the insurer will approve the claim and process the payout.
  • Denial: If discrepancies are found or if the claim is not valid as per the policy terms, it might be denied. The insurer will provide reasons for the denial.
• Payout: Once approved, the death benefit will be disbursed to the beneficiaries.

• Claim Form: A specific form provided by the insurance company that needs to be filled out by the claimant.
• Death Certificate: An official document that confirms the death of the policyholder, as issued by the appropriate authorities.
• Original Group Life Term Policy Document: The policy detailing the terms of the coverage, often held by the employer or group administrator.
• Proof of Identity of the Claimant: Official identification documents such as a driver's license, passport, etc.
• Proof of Relationship: Documentation like a birth certificate or marriage certificate may be needed to establish the relationship of the claimant to the deceased.
• Employment Proof: If applicable, documents such as an employment contract or recent pay slips to validate the deceased's association with the employer.
• Medical Records (if required): Depending on the insurer's policies and the cause of death, detailed medical records or a doctor's report may be required.
• Police Report (if applicable): In case of an accidental or suspicious death, a comprehensive police report might be necessary.
• Any Other Relevant Documentation: The insurer may require additional documentation based on the nature of death, specific policy terms, or other pertinent factors.

Increasing Term Insurance Policy covers:

Death Benefit: If the insured person passes away during the policy term, a death benefit is paid out to the designated beneficiaries. The unique feature is that the death benefit increases over time.

Extensions can include:

• Riders: Various riders can be added to the policy, such as critical illness, disability, or accidental death riders.
• Additional Coverage: Some policies allow for additional coverage, enhancing protection.

Exclusions might involve:

• Suicide Clause: Similar to other life insurance policies, there might be a suicide exclusion clause during the initial policy period.
• Fraud or Misrepresentation: Providing false or inaccurate information during the application process can lead to denied coverage.

The policy term for Increasing Term Insurance varies based on the duration chosen by the insured. It can typically range from 10 to 30 years or more.

The sum insured, also known as the death benefit, starts at a specific amount and increases over time. The increase might be a fixed percentage or tied to inflation.

• Long-Term Commitment: Consistent premium payments are required over the policy term to maintain coverage and enjoy the increasing death benefit.
• Premiums: Premiums for Increasing Term Insurance policies might be slightly higher compared to traditional level term policies due to the increasing coverage amount.
• Planning for Future Needs: Increasing Term Insurance is suitable for individuals who want to ensure that their family's financial needs are met, considering inflation and changing circumstances.
• Review and Adjust: Periodic review of the policy is crucial to ensure that the coverage amount continues to align with changing financial needs and goals.

Increasing Term Insurance is a type of term life insurance where the death benefit or sum assured increases at a predetermined rate over the policy's term. This type of policy can be beneficial for individuals who anticipate their financial obligations to grow over time, such as raising children or taking on a larger mortgage.

The Claim Process of Increasing Term Insurance:

• Notification: Upon the death of the policyholder, the insurance company needs to be promptly notified. This is typically done by the beneficiaries or the executor of the estate.
• Document Collection: The claimant or beneficiary must gather all required documents to initiate the claim process.
• Submission: The gathered documents and a duly filled claim form need to be submitted to the insurance company. Some insurers might allow online submissions.
• Assessment by the Insurance Company: After receiving the claim application, the insurance company will review the submitted documents and verify the authenticity of the claim.
• Claim Decision:
  
  • Approval: If all documents are correct and the claim meets the policy's terms and conditions, the insurance company will approve it and process the payout.
  • Rejection: If there are discrepancies, or if the claim does not adhere to the policy terms, the insurance company might deny it. The reasons for denial will be communicated to the claimant.

• Claim Intimation/Form: This is a specific form provided by the insurance company, which the claimant needs to fill out, detailing the circumstances of the policyholder's death.
• Death Certificate: An official document certifying the death of the policyholder, typically issued by local authorities or a medical institution.
• Original Policy Document: The increasing term insurance policy that has details about the policy terms, sum assured, beneficiaries, etc.
• Proof of Identity of the Claimant: This could be official government-issued identification like a passport, driver's license, or national ID.
• Proof of Relationship: Documents establishing the relationship between the claimant and the deceased—like a marriage certificate, birth certificate, etc.
• Medical Records (if applicable): If the death was due to an illness, the insurance company might ask for the deceased's detailed medical records.
• Police Report (if applicable): In cases where the death was accidental or suspicious, a report from the police might be required.
• Any Additional Documentation: Depending on the specifics of the policy or the insurance company's requirements, other documents might be requested during the claim process.

Joint life first death Policies Only one Life Cover claim is payable, on the death of the first of the Lives Insured to die. On payment of the claim the Policy ends. If the Policy Value is higher than the Life Cover Sum Insured, Company will pay the higher amount.

Joint life both death Policies

A Life Cover claim is payable separately on the death of each Life Insured. The Policy ends on the payment of a Life Cover claim. For the second death claim only, if the Policy Value is higher than the Life Cover Sum Insured, Company will pay the higher amount.

Joint life last death Policies

Only one Life Cover claim is payable, on the death of the last of the Lives Insured to die. On payment of the claim the Policy ends. If the Policy Value is higher than the Life Cover Sum Insured, Company will pay the higher amount.

Some joint life term policies pay out on first claim basis, i.e. the sum assured is paid on the death of whomever of the two policy holders dies first and the policy ends thereafter.

However, in case of certain other joint life policies, there is a payment on the death of each of the two insured respectively.

Some policies also offer additional benefits. For example, if either one of the spouses dies, some policies provide a regular income to the surviving spouse for a fixed period (up to 60 months in some cases). This regular income is in addition to the death benefit paid to the surviving spouse. What is more, in some policies there is an extra amount paid along with death benefit if the death is due to an accident.

Some joint life plans also provide the option of adding a critical illness insurance rider to the base policy.

Further, some recently launched joint term plans also provide additional benefits like in-built accidental death benefit and in-built terminal illness (an advanced or rapidly-progressing incurable and uncorrectable medical condition) benefit.

Different Type of Joint Life Insurance:

Just like with an individual life insurance plan, you have options in the Joint Life Insurance category too. It can be either an endowment plan or a typical term plan. The only difference is; the plans covers two lives instead of one.

• Joint Term Plan: You and your partner pay a premium for a fixed amount of period, during which time you can claim for the life cover amount in case either one of your dies.

However, the cover expires after this happens. You or your partner will then have to buy another life insurance cover at a revised rate of premium.
 

• Joint Endowment Plan: An endowment policy also has an investment aspect. Like a term plan, it is valid for a particular period of time—ideally until your retirement begins. After this period of time, your insurer pays you a certain amount. This is called the ‘endowment’.

Similarly, the joint endowment plan promises you and your partner an assured payment after the policy expires. This is true even if one of you passes away. If that happens, you get the cover after your partner’s death and the endowment money after the maturity of the agreed period. The premium payments, however, do not have to continue after the first death.

Lower premiums: If both the partners choose separate life insurance plans, they have to pay a higher amount in the form of premiums. But, with joint life insurance, a couple receives a dual cover at an economical rate. It’s like getting a discount while buying something in bulk.

Regular income: A lot of insurers offer regular income to the surviving individual in the case of a death of his/her spouse. This ensures the surviving partner does not suffer financially in case of a tragedy.

Security for children: Various plans offer benefits to the children if both the parents die before the maturity of the plan. This ensures that the dreams of your children do not come to a halt due to a tragedy.

Tax benefits: The individuals also receive tax exemption/benefits as per the relevant tax laws in each country. As the tax laws change from time to time, in each country, the individuals are advised to consult their tax advisors to get more information.

Apart from these general features, each insurer has its own features related to the policies like rider benefits and bonuses.

Joint life term insurance versus separate term plans

Joint policies can be cheaper than individual policies, but that isn’t always the case. If you know how life insurance premiums are set, then you know that your health when you apply plays a huge role. That’s normally fairly straightforward, but it gets complicated with a joint policy because the insurance company is calculating the risks for two different people.

On one hand, if one spouse has a pre-existing medical condition or in poor health, the premium on the joint policy could be higher than the healthier spouse buying his or her own policy. But if both spouses need coverage, the joint policy could be more affordable than buying two separate policies.

Also: if one of the members of a policy is considerably healthier or younger than their partner, the surviving spouse might end up paying a lot more over the life of a policy than they would if they were to get their own policy.

Joint Life Insurance is not just for married couples. It is also applicable for business partners. This allows different sets of people to take advantage of a life cover to take care of their business interests.

Even parents can opt for a joint life insurance plan with their child as the co-owner. This way, the child can benefit in case of the parent’s unexpected death. The money from the life cover can help secure the child’s financial security, especially considering the rising cost of education, medical treatments or even day-to-day household maintenance

Joint Life Term Plan is a life insurance policy that covers two individuals, typically spouses or business partners, under one contract. The policy pays out the death benefit when either of the insured individuals passes away. Once the death benefit is paid out, the policy usually ends unless it has a provision to continue for the surviving insured at adjusted terms.

The Claim Process of Joint Life Term Plan:

• Notification: Upon the death of one of the policyholders, the insurance company must be promptly notified by the surviving policyholder or beneficiaries.
• Document Collection: The claimant must gather all necessary documents that the insurance company requires to validate and process the claim.
• Submission: Submit the collected documents and a completed claim form to the insurance company. Some insurance companies might offer an online submission process.
• Assessment by the Insurance Company: The insurer will assess the documents and verify the authenticity of the claim, checking it against the policy terms and any exclusions.
• Claim Decision:
  • Approval: If everything is in order and the claim meets the policy's terms and conditions, the insurer will approve it and process the payout.
  • Rejection: If there are discrepancies, or if the claim doesn't fit the policy's terms, the insurer might deny it, communicating the reasons for the denial to the claimant.
• Payout: Upon approval, the insurance company will disburse the death benefit to the surviving policyholder or the named beneficiaries.

• Claim Intimation/Form: A form or notification provided by the insurance company that needs to be filled out by the claimant, detailing the circumstances of the policyholder's death.
• Death Certificate: An official document, usually issued by local authorities or a medical institution, certifying the death of the insured individual.
• Original Policy Document: The joint life term insurance policy document containing details about the policy terms, sum assured, beneficiaries, etc.
• Proof of Identity of the Claimant: Official identification documents like a passport, driver's license, or national ID.
• Proof of Relationship: Documents such as a marriage certificate, birth certificate, or partnership agreement to establish the relationship between the claimant and the deceased.
• Medical Records (if applicable): If the death was due to an illness, the insurer might request detailed medical records of the deceased.
• Police Report (if applicable): If the death was accidental or involved suspicious circumstances, a report from the police might be required.
• Any Additional Documentation: Depending on the policy specifics or the insurer's requirements, additional documents might be requested during the claim process.

In case, the life assured passes away during the policy period, the insurance company pays the effective sum assured to the nominee as per the payout opted by the policyholder.

The different payout options vary from provider to provider
For E.g.

The premium payable corresponding to the increased Sum Assured will be determined on basis of the remaining policy term and attained age, subject to maximum entry age and minimum policy term conditions. The premium rates for increase in Sum Assured as a result of Life Stage Event will be determined on basis of the Sum Assured band of the policy applicable to the total sum assured inclusive of the Life Stage Benefit.

Example 1: Regular Pay option, Age: 35 years; Term: 35 years; Sum Assured: USD 10,000,000 Male (Non-Smoker); Death Benefit option chosen is  100% of the policy Sum Assured paid immediately on death of Life Insured. The annual premium payable for this policy is USD 10,900. After payment of five full premiums the policyholder provides intimation about Life Stage Event (Child Birth) which leads to an increase in Sum Assured by USD 2,500,000 Incremental premium for life stage increase in sum assured (Basis attained age 40 years and remaining term 30 years for Sum Assured of USD 2,500,000) = USD 3,575 Total premium payable from Year 6 onwards = USD 14,475 (10,900 + 3,575)

The increase in Sum Assured shall not be subject to any medical examination.

The increase in Sum Assured will not be applicable on CI Sum Assured or Riders.

Life Stage Event Term Insurance Plan is a term insurance product that is designed to cater to the changing insurance needs of an individual as they go through significant milestones or "life stages." The coverage of this insurance plan can automatically increase during major life events such as marriage, the birth of a child, or buying a house. This ensures that the policyholder is adequately covered without having to purchase a new policy every time there's a significant change in life circumstances.

The Claim Process of Life Stage Event Term Insurance Plan:

• Notification: The insurance company should be promptly informed about the death of the policyholder, usually by the beneficiaries or the nominee.
• Document Collection: The beneficiaries must collect all the essential documents that the insurer will require to verify and process the claim.
• Submission: All required documents, along with the claim form, should be submitted to the insurance company. This can often be done through offline channels or possibly online, depending on the insurer's facilities.
• Assessment: Once the insurer receives the claim and the necessary documents, they'll conduct an assessment to verify the claim's legitimacy and ensure it complies with the policy's terms.
• Claim Decision:
  • Approval: If the claim is found valid and all checks are satisfied, the insurer will approve the claim and process the death benefit payment.
  • Rejection: If there are discrepancies or if the claim doesn't meet the policy's conditions, it might be denied. The insurer will then communicate the reasons for the rejection to the claimant.
• Payout: Upon approval, the death benefit is disbursed to the named beneficiaries or nominee.

• Claim Intimation/Form: A standard form provided by the insurer for the claimant to notify and provide details about the policyholder's demise.
• Death Certificate: An official certificate that verifies the death of the policyholder, typically issued by medical institutions or local government bodies.
• Original Policy Document: The actual policy certificate or document containing all the terms, conditions, and specifics of the insurance coverage.
• Identity Proof of the Claimant: Documents like a passport, driver's license, or a national ID card to establish the claimant's identity.
• Proof of Relationship: To authenticate the relationship between the claimant and the deceased, documents such as marriage certificates, birth certificates, or other relevant documents might be required.
• Medical Records (if applicable): If the death resulted from an illness, the insurance company might ask for comprehensive medical records of the deceased.
• Police Report (if applicable): For deaths involving accidents, suspicious circumstances, or unnatural causes, a police report might be essential.
• Documentation of Life Stage Events (if applicable): As this is a Life Stage Event Term Insurance Plan, any documents that verify major life events leading to increased coverage might be required. This can include marriage certificates, birth certificates of children, home purchase documents, etc.
• Any other documentation: The insurance company might request other specific documents based on the policy's terms and conditions or if there are particular circumstances surrounding the claim.

Mortgage Life Insurance covers the remaining balance of the insured's mortgage loan in the event of their death. If the insured person dies during the policy term, the insurance company pays out a death benefit that corresponds to the outstanding mortgage amount.

Extensions can include:

• Critical Illness Coverage: Some policies offer the option to add coverage for critical illnesses, where a lump sum is paid if the insured is diagnosed with a specified critical illness.
• Disability Coverage: This extension provides coverage if the insured becomes disabled and unable to work, helping cover mortgage payments during the disability period.

Exclusions might involve:

• Suicides: Many policies have a suicide exclusion clause during the initial policy period (usually the first two years).
• Pre-existing Conditions: Some health-related conditions may lead to exclusions or higher premiums.
• Non-Payment of Premiums: If premiums are not paid, the policy can lapse and coverage may be lost.

The policy term of Mortgage Life Insurance typically corresponds to the remaining term of the mortgage loan. As the mortgage balance decreases over time, the policy coverage amount decreases as well.

The sum insured is the amount that matches the outstanding mortgage balance. It decreases over time as the insured pays off the mortgage.

Mortgage Life Insurance is tied directly to the mortgage loan, so if the mortgage is paid off early or refinanced, the coverage amount will adjust accordingly.

• While Mortgage Life Insurance can be valuable for protecting loved ones, some individuals may opt for traditional life insurance policies with more flexible benefits that can cover a broader range of financial needs.
• Careful consideration is needed to ensure that the coverage amount accurately reflects the mortgage balance and financial needs of the family.
• Shopping around and comparing policies from different insurers is important to find the best terms and premium rates.
• Mortgage Life Insurance can provide added security, especially for homeowners who have dependents and want to ensure that their family's housing needs are met.

Mortgage Life Insurance is a type of term life insurance that's designed to pay off or reduce the outstanding mortgage balance in the event of the insured's death. The policy's death benefit typically decreases over time, aligned with the outstanding balance of the mortgage. It provides peace of mind to homeowners, ensuring that their families won't be burdened with mortgage payments if the primary breadwinner passes away.

The Claim Process of Mortgage Life Insurance:

• Notification: Inform the insurance company about the death of the policyholder as soon as possible. This is usually done by the beneficiaries, a family member, or the executor of the estate.
• Document Collection: Beneficiaries or family members should gather all necessary documents that the insurance company will require for verification.
• Claim Form Submission: Submit the completed claim form and all required documents to the insurance company. Depending on the insurer, this might be done online, via mail, or at a local branch.
• Assessment: The insurer reviews the claim, verifying all details and ensuring that the claim meets the policy's terms and conditions.
• Claim Decision:
  < • Approval: If the claim is approved, the insurer directly pays the death benefit to the mortgage lender to settle the outstanding balance. Any excess might be paid to the beneficiary.
  < • Rejection: If discrepancies are found or the claim doesn't match the policy's terms, it could be denied. Reasons for denial will be communicated to the claimant.
• Payout: The mortgage lender receives the death benefit to offset the loan. Any remaining amount, if applicable, is then provided to the policy's beneficiaries.

• Claim Intimation/Form: A document provided by the insurance company to be filled out by the claimant, detailing the circumstances and information related to the policyholder's death.
• Death Certificate: A certificate verifying the death of the insured, typically issued by medical institutions or local government.
• Original Policy Document: The actual insurance policy that outlines the terms, conditions, and coverage specifics.
• Identity Proof of the Claimant: Documents to prove the claimant's identity, such as a passport, national ID, or driver's license.
• Proof of Relationship: Documents like marriage or birth certificates to verify the claimant's relationship to the deceased.
• Mortgage Documentation: Documents related to the mortgage loan, showing the outstanding balance and other pertinent details.
• Medical Records (if applicable): If the death was due to a medical condition, the insurer might request detailed medical records or reports.
• Police Report (if applicable): For deaths due to accidents or other suspicious circumstances, a police report might be required.
• Other Relevant Documentation: Depending on the specifics of the insurance policy and the circumstances surrounding the claim, other documents may be necessary.

Single Life Term Insurance provides coverage for a specific period (the term) to the insured individual. If the insured person passes away during the policy term, a death benefit is paid out to the designated beneficiaries. This coverage offers financial protection to the insured's loved ones in case of their untimely demise.

Extensions can include:

• Critical Illness Coverage: Some policies offer the option to add critical illness coverage, providing a lump sum payment upon diagnosis of specified critical illnesses.
• Disability Coverage: Disability riders can be added to provide benefits if the insured becomes disabled and unable to work.

Exclusions might involve:

• Suicides: Many policies have a suicide exclusion clause during the initial policy period (usually the first two years).
• Misrepresentation: Coverage can be denied if the insured provided false or inaccurate information during the application process.
• Dangerous Activities: Some high-risk activities, like extreme sports or illegal activities, may lead to exclusions.

The policy term for Single Life Term Insurance is predetermined and chosen at the time of purchasing the policy. Typical term lengths can range from 5 to 30 years.

The sum insured, also known as the death benefit, is the amount that will be paid out to beneficiaries if the insured person passes away during the policy term. It's often chosen based on financial needs, such as income replacement and debt coverage.

• Single Life Term Insurance is suitable for individuals who want temporary coverage for a specific period, such as during their working years or until certain financial obligations are met.
• Premiums for term insurance policies are typically level for the duration of the chosen term, making it easier to budget.
• Renewal and conversion options may be available at the end of the policy term, allowing policyholders to extend coverage or convert to a permanent policy without a medical exam.
• Choosing the right policy term and coverage amount requires careful consideration of financial responsibilities and goals.

Single Life Term Plan is a type of term life insurance that provides coverage for a single individual for a specific term or period. If the insured person passes away within the policy term, a death benefit is paid out to the designated beneficiaries. If the insured survives the term, no benefit is paid.

The Claim Process of Single Life Term Plan:

• Notification: Inform the insurance company of the death of the policyholder as soon as possible. The beneficiaries, a family member, or the executor of the estate typically do this.
• Document Collection: Gather all necessary documents that the insurance company will require for verification.
• Claim Form Submission: Submit the completed claim form and all required documents to the insurance company. This can typically be done online, via mail, or in person at an insurance branch.
• Assessment: The insurer reviews the claim, verifies all details, and ensures that the claim meets the policy's terms and conditions.
• Claim Decision:
  • Approval: If the claim is approved, the insurance company pays the death benefit to the beneficiaries as a lump sum or in the manner chosen at the policy inception.
  • Rejection: If there are discrepancies or the claim doesn't match the policy's terms, it might be denied. The insurer will communicate the reasons for denial to the claimant.
• Payout: Once approved, the insurer initiates the payout, transferring the death benefit amount to the nominated beneficiaries.

• Claim Intimation/Form: A standard document or form provided by the insurance company to be filled out by the claimant. It typically details the circumstances of the policyholder's death.
• Death Certificate: A certificate that confirms the death of the insured. This is usually issued by medical institutions or the local government.
• Original Policy Document: The actual insurance policy that was provided when the cover was initiated. It details the coverage, terms, conditions, and other specifics.
• Identity Proof of the Claimant: Any recognized documentation such as a passport, national ID, or driver's license to verify the identity of the claimant.
• Proof of Relationship: Documents that confirm the claimant's relationship to the deceased, e.g., marriage or birth certificates.
• Medical Records (if applicable): If the cause of death was due to a medical condition or illness, the insurer might request comprehensive medical records or documentation about the condition.
• Police Report (if applicable): If the death occurred under suspicious circumstances, due to an accident, or as the result of a crime, a police report might be necessary.
• Other Relevant Documentation: Depending on the specifics of the policy and the circumstances of the claim, other documents may be required.

Provide you with life cover that will pay a cash sum if:

• You die during the term of the policy, or
• You are diagnosed with a terminal illness and have less than 12 months to live, provided that the diagnosis occurs before the last 18 months of the policy term and terminal illness cover is inbuilt in the policy.
• Pay you a cash sum if you are diagnosed with a critical illness during the policy term, if critical illness benefit is chosen.
• Pay you a cash sum if you become permanently and totally disabled during the policy term, if permanent and total disability benefit is chosen.
• Pay your policy premiums if you are unable to work through illness or accident, if waiver of premium benefit is chosen.
• Continue to provide protection if you move permanently to another country; subject to the Company’s business acceptance rules at the time.

Survival Benefits
The premium you pay over the duration of policy is hundred percent returnable if you survive your TROP plan. This is what distinguishes TROPs from the normal term plans.  

Benefit of Tax
Permits you to avail tax benefits for the premium paid and maturity proceeds against your TROP policy.

Death Benefits
If you don’t survive your TROP plan for the stipulated duration, your nominee will be paid the entire sum assured as a death benefit.

Reliability
If you miss paying your premiums or opt to discontinue paying them, your policy/life cover still continues in process, however with reduced death or maturity benefits, as may apply with relevant calculations.

Returnable TROP Policy
Many TROP plans are returnable depending upon its provider. This means, if you opt to discontinue your premium payment and would like to return the policy, your premium paid till that date will be reversed with pre-stated deductions.

The premiums for these policies can be paid in the following ways:

• One time lump sum
• Annually
• Half yearly
• Quarterly
• Monthly

Additionally, there may be an opportunity to add life insurance riders to your policy depending on which provider you choose.

Critical Illness Rider: Pay you a cash sum if you are diagnosed with a critical illness during the policy term, if critical illness (CI) benefit is chosen.

Permanent Total Disability Rider: Pay you a cash sum if you become permanently and totally disabled during the policy term, if permanent and total disability (PTD) benefit is chosen.

Waiver of Premium Benefit: If waiver of premium (WOP) benefit is chosen, the Company will waive your policy premiums if you are incapacitated for a period of at least 180 days through accident, long term illness or injury.
With the option of having riders within your policy, you might have to pay a little more but you will have the added protection which can be useful.

Who Should Consider Single Life Term Insurance?

It may be right for you if:

• You want to provide financial protection for yourself, your family, your business;
• If you have always wanted a term plan that rewarded you for surviving the term of the policy

Term Return of Premium (TROP) Insurance is a variation of traditional term life insurance that offers a unique feature where a portion or all of the premiums paid during the policy term are returned to the policyholder if they outlive the term of the policy. Here are some important special notes to consider about Term Return of Premium (TROP) Insurance:

• Premium Refund: One of the primary features of TROP insurance is the return of premium. If the policyholder survives the entire term of the policy, they are eligible to receive a refund of the premiums paid during the policy period. This can be a substantial amount and provides a form of savings or forced savings.
• Higher Premiums: TROP policies generally have higher premium rates compared to traditional term life insurance policies. This is because a portion of the premiums is allocated to the premium refund feature.
• Complete Refund vs. Partial Refund: The extent of premium refund varies depending on the policy. Some TROP policies offer a complete refund of all premiums paid, while others may provide a partial refund.
• No Cash Value: Despite the premium refund feature, TROP policies do not accumulate a cash value component like some permanent life insurance policies. The premium refund is essentially a return of the money paid in premiums.
• Limited Return Period: Most TROP policies have a specific period during which the premiums must be paid to be eligible for the premium refund. If the policyholder stops paying premiums before the end of this period, the refund may not be granted.
• Less Cost-Effective: While TROP policies offer a way to recover premiums, they tend to be less cost-effective than traditional term life insurance policies. The extra cost for the refund feature might outweigh the potential benefit.
• Tax Implications: In some jurisdictions, the premium refund received at the end of the policy term might be tax-free. However, it's important to understand the tax implications based on your location and circumstances.
• Long-Term Commitment: TROP policies require a commitment to paying premiums for the entire term of the policy to receive the refund benefit. Individuals should assess whether they can maintain this commitment before opting for TROP insurance.
• Renewal and Conversion: Some TROP policies offer renewal or conversion options at the end of the term. Policyholders can extend coverage or convert to permanent insurance, often without a medical exam, but the premiums for these options might be higher.
• Risk Management vs. Investment: TROP insurance should be primarily considered as a risk management tool to protect loved ones. While the refund feature can be seen as a form of savings, it is not a substitute for dedicated investment or savings strategies.
• Comparison Shopping: Individuals should carefully evaluate the costs, benefits, and potential returns of TROP insurance compared to other insurance and investment options before making a decision.
• Financial Goals: TROP insurance might align well with individuals who want life insurance coverage and a potential return of premiums without the commitment of permanent life insurance.

Term Return of Premium (TROP) is a type of term life insurance that returns the premiums paid by the policyholder if they outlive the policy term. Essentially, if the insured person survives the policy term, they get back the total amount of premiums they paid during the policy tenure. If they pass away during the term, the beneficiaries receive the death benefit.

The Claim Process of Term Return of Premium (TROP):

• Notification: If the policyholder passes away during the term, the beneficiaries or the executor of the estate should inform the insurance company about the death as promptly as possible.
• Document Collection: The claimant should gather all necessary documents that the insurance company will require for verification.
• Claim Form Submission: The claim form, duly filled, along with all required documents should be submitted to the insurance company. This can usually be done online, via mail, or in person at an insurance branch.
• Assessment: The insurer will review the claim, check all details, and ensure that the claim aligns with the policy's terms and conditions.
• Claim Decision:
  • Approval: If the claim is approved, the insurance company pays the death benefit to the beneficiaries.
  • Rejection: If there are discrepancies or the claim doesn't match the policy's terms, it might be denied. The reasons for denial will be communicated to the claimant.
• Payout: Once approved, the insurer initiates the payout process, transferring the death benefit amount to the designated beneficiaries.
• Return of Premium: If the policyholder outlives the term, they should apply to get their premiums returned. The insurance company will typically outline the process for this.

• Claim Intimation/Form: A standard document or form provided by the insurance company to be filled out by the claimant, detailing the circumstances of the policyholder's death.
• Death Certificate: An official certificate confirming the death of the insured, usually issued by medical institutions or the local government.
• Original Policy Document: The original insurance policy provided at the start of the cover, detailing the coverage, terms, conditions, etc.
• Identity Proof of the Claimant: Any recognized documentation, such as a passport, national ID, or driver's license, to verify the identity of the claimant.
• Proof of Relationship: Documents that verify the claimant's relationship to the deceased, like marriage or birth certificates.
• Medical Records (if applicable): If the death was due to a medical condition or illness, the insurer might ask for comprehensive medical records or related documents.
• Police Report (if applicable): Necessary if the death was due to suspicious circumstances, an accident, or a crime.
• Other Relevant Documentation: Depending on the specifics of the policy and the circumstances of the claim, additional documents might be required.

Final Expense Insurance Policy covers:

• • Funeral Costs: The policy provides funds to cover funeral expenses, including casket, funeral service, burial plot, headstone, and other related costs.
• • Medical Expenses: Some policies may cover outstanding medical bills or other debts left behind by the insured.

Exclusions might involve:

• Suicide Clause: Similar to other life insurance policies, there might be a suicide exclusion clause during the initial policy period.
• Fraud or Misrepresentation: Providing false or inaccurate information during the application process can lead to denied coverage.

The policy term for Final Expense Insurance is typically permanent, providing coverage for the entire lifetime of the insured person.

The sum insured, or death benefit, is the amount that will be paid out to the designated beneficiaries upon the insured's death. It should be chosen based on the estimated costs of funeral and related expenses.

• Financial Relief: Provides financial support to cover funeral and burial costs, relieving loved ones from the financial burden.
• Ease of Planning: Final Expense Insurance allows individuals to plan and pay for their end-of-life expenses in advance.
• Ease of Planning: Final Expense Insurance allows individuals to plan and pay for their end-of-life expenses in advance.
• Customizable: Policies can be tailored to fit the insured's specific needs and budget.

• Simplicity: Final Expense Insurance is a straightforward solution focused on covering specific end-of-life expenses.
• Affordability: Premiums for this type of insurance are often lower compared to traditional life insurance policies, as the coverage amount is typically smaller.
• Designated Beneficiary: The policy's death benefit is paid directly to the designated beneficiary, who can then use it to cover the expenses.
• Estate Planning: Including a Final Expense Insurance policy in estate planning can help ensure that end-of-life expenses are covered without depleting other assets.
• Review and Adjust: Periodic review of the policy ensures that the chosen coverage amount remains aligned with estimated costs and any changes in financial circumstances.
  
• Return of Premium: If the policyholder outlives the term, they should apply to get their premiums returned. The insurance company will typically outline the process for this.