FREQUENTLY ASKED QUESTIONS 2015 2

FREQUENTLY ASKED QUESTIONS
1. What happens if I die without naming a beneficiary on my Life or Annuity Policy?

Where no beneficiary is named under a policy or the beneficiary is ‘Estate’, your family
members will need to obtain Letters of Administration before the proceeds can be
distributed. This is a legal document issued by the High Court that shows an administrator’s
legal right to take control of assets in the deceased person's name.
2. Can I put my children who are minors as beneficiaries on my policy?

Yes, however if they are still minors at the time the death benefit is payable they will have to
wait until the age of Age Of Majority before the benefit is paid. This is the age when a person
acquires all the rights and responsibilities of being an adult. In most cases, the age is 18.
3. What happens if I am unable to pay the Life Insurance premiums for the policy?
If your policy is one that accumulates a Cash Value (Whole Life, Endowment, Universal Life
Plans) then premiums or charges will be deducted from this value to keep the policy active.
Once this fund is exhausted the policy lapses. If your policy does not accumulate a cash
value, as with Term Policies for example, the policy will lapse after the grace period specified
in the policy for payment of the modal premium.
4. How can I restore my policy once it has lapsed?

It depends on the time elapsed since the policy lapsed. If the policy provides for
reinstatement within a particular period and the time elapsed has not exceeded this period,
you need to complete Part 1 and 2 of an Application, fill out the reinstatement forms, pay the
required premiums and submit the current Policy Contract. You may also be required to
satisfy medical requirements.
5. What do I need to do to claim the death benefit after the insured dies?
There are several forms required to complete the death claim process and these are
supplied by the Company. These include the Physician's Statement, Claimant's Statement
and Agent's Statement. You must also submit the Policy Contract, and the insured's Birth
and Death Certificates. If the policy does not have a named beneficiary, Letters of
Administration will be needed.
6. Apart from a death benefit, are there any other benefits an insurance policy can
provide?
Some policies can be used as collateral at Banks and other financial institutions. Our
Universal Life Policies generate early cash values from which Interest Free Loans can be
taken. Medical insurance (Health/Personal Accident etc) policies would also carry benefits
for medical claims covered by the policy
7. Can I access funds from my policy if I am living abroad?

You can access your funds by filling out the appropriate forms and by having them witnessed
by a Notary Public.
8. How do I pay my monthly premiums?

The most popular method of paying premiums is through salary deductions. There are other
ways such as Bankers Order or by direct payments at one of our many Agency Offices.
9. How long will it take before I receive my death claim cheque?

Once all the appropriate forms are completed and there is no claim investigation required,
your claim is processed in 2 weeks.
10. What is Universal Life Insurance?

This is a type of policy that develops a cash value from the time the first premium is paid. It
applies competitive interest rates to your fund. The insured is also covered for a death
benefit. No interest is charged on loans taken from the policy values.
11. Can you change the beneficiary on a Life Insurance Policy?

A beneficiary who is not revocable can be changed at any time. However if the beneficiary is
irrevocable, he or she must give their consent before the change can be made. If a spouse
or child is nominated as a beneficiary under a life insurance policy at the time that the policy
is applied for, they become irrevocable beneficiaries. Also, a beneficiary can be stated to be
‘irrevocable’ by the Policy Owner at the time that they are nominated.
12. Is the death benefit on an Insurance Policy taxable?

No, the Death Benefit on a Life Insurance Policy is not taxable
13. How long does it take for a cash value to accumulate on an insurance policy?
On our Universal Life Policies the cash value accumulates from day one. Our traditional
policies develop cash values after 3 years.
14. What is an annuity?

This is a specified sum payable to a person upon the maturity/retirement date of the policy.
This annuity is purchased based on the calculated fund value of the policy at the time of
retirement.
15. Can I get insurance if I'm not in the best of health?

Insurance is sometimes given to persons who are not in the best of health but the premium is
higher. Approval for these policies is subject to our underwriter's judgment. Be advised that
full disclosure of a person’s medical ailments and history must be given to avoid a rejection
of subsequent claims and a rescinding of the policy contract based on the insured’s
misrepresentation.

FREQUENTLY ASKED QUESTIONS 2015 2

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FREQUENTLY ASKED QUESTIONS 2015 2

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FREQUENTLY ASKED QUESTIONS

1. What happens if I die without naming a beneficiary on my Life or Annuity Policy?

2. Can I put my children who are minors as beneficiaries on my policy?

4. How can I restore my policy once it has lapsed?

7. Can I access funds from my policy if I am living abroad?

8. How do I pay my monthly premiums?

9. How long will it take before I receive my death claim cheque?

10. What is Universal Life Insurance?

11. Can you change the beneficiary on a Life Insurance Policy?

12. Is the death benefit on an Insurance Policy taxable?

14. What is an annuity?

15. Can I get insurance if I'm not in the best of health?

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