Life Assurance vs Life Insurance
Life assurance often known as a whole of life policy is a type of insurance that continues indefinitely and pays out a lump sum once a policyholder dies (assuming they’ve met their monthly premiums).
The main difference between life assurance and life insurance is that life insurance covers you for a set term, whereas life assurance covers you for a whole life.
Who needs life assurance?
You may prefer to take out a life assurance policy if the security of a guaranteed payout is important to you.
While the premiums are usually higher, other policies do not offer 100% guarantee of a lump sum upon your death which can make it an attractive deal.
Definition of terms in life insurance /assurance
Sum assured – Sum payable by the insurance company incase of death or maturity of the policy to the beneficiary of the life policy.
Death benefit – amount payable by the insurance company to the beneficiary of the policy in case of death of the life assured while the policy is in force.
Premium– Amount paid by the life assured to the insurance company to secure the policy value, death benefit, face amount and or sum assured.
Rider – Additional benefits that complement the benefits under the main policy.
Accidental death – Loss of life due to accidental causes.
Policy term – Duration from the inception of a policy to the intended date of expiry ( maturity).
Premium term – Premium paying period.
Bonus – Addition to the sum assured, declared annually by the insurance company representing the excess of the actual investment return over the expected.
Cash value / Surrender Value –The amount payable on the termination of the policy before its maturity.
Application form
Fanaka
Investment Plan.
Fanaka investment plan enables you to build a fund over a period of time to meet any financial needs such as building a home for your family, purchasing your dream car, cater for major life ceremonies like marriage or graduations etc.
The Fanaka plan can also set you off to financial freedom by offering you seed capital for your business.
The policy is divided into layers to fit your individual needs.
Features;
- Minimum term is 5 years
- Maximum term is 20 years
- Minimum sum assured is kes 350,000
- Entry age is 18- 65 years
- Maximum maturity age is 70 years
- Surrender value ;
- For 5 – 10 year plan, surrender is possible from the 5th year
- For 11 – 20 year plan, surrender is possible from the 3rd year. .
Education Plan
(Career life plus).
An education policy is a life insurance product specially designed as a savings tool to provide an amount of money for your child’s education.
The smartest way to secure your child’s future begins with investing in the right educational plan.
Jubilee insurance Career life plus cover is tailored to ensure your child’s dreams are fulfilled through a well-managed fund.
Start saving today and we will help your child realize their aspirations.
Features;
- Entry age is 18-65 years
- Maximum maturity age is 70
- years
- Minimum Sum assured is kes 200,000
- Policy term is 5 -20 years
- Cash value – 3 full years premiums ( must be in force for at least 3 years)
Anticipated Endowment Plans
An anticipated endowment is a with guaranteed cash payments payable to the policy owner at regular intervals during the term of the policy.
With the anticipated endowment plan, one can accumulate funds over a period of time by making periodic premiums either monthly, quarterly, semi-annual or annually with a goal in mind.
In addition to this, at certain intervals during the policy’s term, part of the policy accumulated benefits are paid out to the policy owner. At the end of the policy term, the remaining accumulated benefits are paid to the policy owner as a lump-sum, together with the accrued bonuses.
The product further offers life cover which is payable in the event of death of the insured at any time during the term of the policy.
The two types of anticipated endowment plans are;
A. Triplex products
The accumulated policy benefits are paid in 3 instalments as follows ;
- 25% of Sum assured ( paid 1/3 way of the policy term)
- 25% of sum assured ( paid 2/3 way of the policy term)
- 50% of sum assured plus accrued bonuses paid at the end of the policy term.
- Minimum sum assured is kes 200,000.
B. Anticipated Products
The maturity benefits are paid in 5 partial maturities. – It taken either for 15 or 20 year terms.
For example, a 15 year plan is paid out as follows ;
-3rd year – 10% of sum assured
-6th year – 15% of sum assured
-9th year – 15% of sum assured
-12th year – 15% of sum assured
-15th year – 45% of sum assured plus accrued bonuses.
Maxilife products
Joint maxilife product
Joint maxilife insurance cover allows protection of two individuals with the full value of the policy being paid once at the time of either life’s death.
This is a very important policy for families where the benefits are paid on death of either the husband or the wife.
Benefits
- Peace of mind to the family
- Financial security
- Fixed premiums
- Fully customizable
Family shield
- This is a last expense life cover payable only on the death of the life assured.
- It has 2 terms 5 or 10 years
- It’s in 5 categories with sum assured as follows
| SUM | MEMBER | |||
| ASSURED | SPOUSE | CHILD | PARENT | |
| KIFARU | 50,000 | 25,000 | 50,000 | |
| CHUI | 100,000 | 50,000 | 100,000 | |
| NYATI | 150,000 | 75,000 | 150,000 | |
| NDOVU | 200,000 | 100,000 | 200,000 | |
| SIMBA | 250,000 | 125,000 | 250,000 | |
There are supplementary benefits for each category as follows ;
- Refreshments during the funeral
- Monthly allowances to cater for debts left by the deceased till the end of the policy term.
- Daily cash allowances in case of hospitalization of the policy holder as a result of accident. It’s paid for a minimum of 4 days and maximum of 15 days.
Application Form
Riders
These are extra benefits to the policy gained by payment of additional premium either monthly, quarterly, half yearly or annually.
i. Waiver of premium (WP)
In case the life assured becomes permanently disabled as a result of accident or illness, all future premiums are waived .
ii. Total and permanent disability (TPD)
In case of total and permanent disability due to accident or illness, an amount equivalent to the sum assured is payable in 36 monthly installments.
iii. Accidental death benefit (ADB)
In case of death of the insured due to an accident, within the term of the policy, an amount equal to the sum assured is payable to the beneficiaries.
iv. Adult Accident Hospitalisation Rider
( AAHR)
In case of hospitalization due to an accident, the inpatient expenses will be refunded / reimbursed up to 40% of the Sum assured or kes 250,000 which ever is less .
v. Child accident hospitalisation rider
(CAHR)
Applicable in career life policies.
In case the child is hospitalised due to an accident, all the inpatient expenses will be reimbursed up to 40% of sum assured or KES 250,000 which ever is less.
AKIBA HALISI
1. Introduction
- This policy has been designed to enable one to build a fund over a period of time and allow the policy holder to have access to his fund at specified times to enable him meet his obligations
- It also assures a lump sum at a desired age.
- The premium will be payable for the policy term selected (capped at 20 years) or until the death of the life assured if it occurs within the term.
- The minimum and maximum ages at entry are 18 years and 65 years respectively. The maximum maturity age is
70 years.
See more here Akiba Halisi Application form: apa_life_applic_form
APA ELIMU
1. Introduction
- This policy has been designed to enable a parent or guardian make adequate provision for the education of his or her children especially in the unfortunate demise of the parent before the child completes his education.
- The policy term ranges from 5 to 20 years.
- The premium will be payable for the policy term selected (capped at 20 years) or until the death of the life
assured if it occurs within the term. - The minimum and maximum ages at entry are 18 years and 65 years respectively. The maximum maturity age
is 70 years.
See more here APA ELIMU Application form:apa_life_applic_form
IMARIKA
1. Introduction
- This policy has been designed to enable one to build a fund over a period of time and at the same time make provision in case of an early death.
- It also assures a lump sum at a desired age, which can also be reinvested to provide an annuity during the remainder of your life.
- The minimum and maximum ages at entry are 18 years and 65 years respectively. The maximum maturity age is 70 years
See more here Imarika Application form:apa life applic form
PUMZISHA
1. Introduction
- Upon the death of a loved one, most people consider a dignified funeral a non-negotiable expense. Because they tend to be very costly, and may come at a time when they are not expected, it is often difficult to manage the financial burden of a funeral. This situation is aggravated if the deceased had been a primary provider of income.
- The Funeral cover will ensure that cash is available immediately to pay for the costs of a funeral and related expenses.
- An individual and family cover is available
- The premium will be payable for the policy term selected or until the death of the life assured if it occurs within the
term.
See more here Pumzisha Application form:
TERM ASSURANCE
1. Introduction
- This policy has been designed to:
Enable one have a pure life cover that can be used as security on a loan - An organization that needs to offer a life cover to the key persons in the company, such that in the event of death of the key person, the company is compensated.
- Provide an inheritance for dependents
See more here Term Assurance Application form: apa_life_applic_form
