Endowment Assurance
This is a product which combines a life assurance with a saving plan, such that when death occurs at any time within the policy period the Life assurance benefits become payable; while at maturity of the policy, the contract sum assured with all bonuses accrued is payable.
A. Ordinary Endowment Assurance.
The sum assured is paid to the assured when the policy matures i.e. when he survives the specified period or to his nominee(s) or beneficiaries in case of premature death;
B. Anticipated Endowment Assurance
Anticipated Endowment Policy provides for the following benefits:
Payment of 20% of the sum assured after the first 5 years of survival of the policyholder. The 80% balance of the sum assured is paid fully for a policy period of 10 years at maturity of the policy.
For policy periods with duration of 15, 20 or 25 years, another 20% of the sum assured is paid after the next 5 years, the balance of 60% is payable at the maturity of the policy. These payments are made only if the life assured is alive at those intervals and the policy is still in force.
In case of death of the policyholder within the policy period, the full sum assured becomes payable notwithstanding any payments made.
Supplementary Contracts (POLICY RIDERS)
i) Double Indemnity Benefit (D.I.B)
This is an additional sum assured normally up to the level of the basic sum assured payable in addition to the basic sum assured if death of the policyholder is caused by accident.
ii. Disability Cover (Waiver of Premium): (WOP)
A clause in the policy that waives the policyholder’s obligation to pay any further premium should he or she become seriously ill or disabled. A waiver of premium allows people to benefit from an insurance policy, even when they cannot work.
iii) Disability Benefit : (S.A.B)
This supplementary contract is similar to Personal Accident Policy. The beneficiaries of the life assured would get an additional sum assured being limited to Shs.15,000,000/= in case of death arising from accident.
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