When we issue dividends, you may wish to use these to get additional coverage instead of paying an additional premium. This is a good way for you to increase your protection without increasing your premiums. This is sometimes called paid-up additional insurance.
A participating policy is an insurance contract where you 'participate' in the profits of the insurance investment, which means that you may receive dividends. These profits are not guaranteed.
This is a fixed amount of money paid to you as the policyholder at regular intervals.
Permanent partial disability vs. Permanent total disability
The term 'disabilities' can be classified as temporary or permanent, and as partial or total, depending on circumstances.
Temporary disabilities means that you are either unable to work full-time (this is called 'temporary partial disability') or unable to work at all for a period of time (this is referred to as 'temporary total disability'). In either of these situations, you are expecting to make a full recovery and return to work as normal at a later stage.
In the case of a permanent disability, you would never be able to work in the same capacity as before you were ill and/or injured. A permanent disability would prevent you from being able to work full-time for the rest of your life (this is called 'permanent partial disability'), whereas a permanent total disability means that the you will never work again.
It is important for you to understand which of these 4 types of disabilities are covered by your policy, so be sure to read and understand the terms and conditions.
A life insurance policy loan is just a loan from the 'cash value' of your policy. It is important that you keep up the payments on your loan so that we do not need to reduce the final pay-out.
A policy owner is the person in whose name the insurance policy is held. Another term for this is 'policyholder'. So, if you buy an insurance policy under your own name, you’re the policy owner.
As the policy owner, you can add more people to your policy. These would become additional 'people insured' under the policy.
This refers to every 12-month period, starting from the day the policy becomes effective.
A policyholder (also known as 'policy owner') is the person in whose name the insurance policy is held. So, if you buy an insurance policy under your own name, you’re the policyholder.
This is a health condition (either physical or mental) that is diagnosed before your policy becomes effective. It is important that you declare these conditions, so that we can confirm whether we can cover them. If you do not declare these conditions upfront, your policy may become invalid.
This is the cost of your insurance policy, which may be paid on a monthly, quarterly or annual basis.
This is an option where you can choose to delay paying your premiums, as long as your living benefit is enough to cover the monthly deductions and rider premiums. During this period you'll still be covered by your policy.
Premium paying period
This is the total number of periods (eg. years) that a policyholder will need to pay premiums. It will vary depending on the type of policy you choose.
This is the amount of money you need to spend for your policy. This may vary from year to year, depending on the level of cover and your risk profile. Premium rates can be fixed, we call these 'level premiums'.
Projected account value
This is an estimate of how much your fund might be worth when it reaches maturity, or when you start taking money out. As it is an estimate, this amount is not guaranteed.