Botswana Life Affluent
Can I reduce or increase my policy term?
It is not possible to reduce the term of the policy.
How long does it take to process a death claim?
A death claim will be processed within 72 hours provided all required documents have been received.
How long does it take to process a funeral claim?
Provided all the required documents have been submitted, the claim will be processed within six hours.
What are the requirements of a funeral claim?
The following are required for a funeral claim:Death certificate/notice of death/Letter from a local chief with three witnesses indicating that the person is deadIdentity of the deceasedIdentity card of the claimant/beneficiaries
Can my policy be re-activated?
Your policy can be re-activated or reinstated provided all the outstanding premiums have been paid and a period of more than eleven months has not passed since the lapse effective date. For Life cover policies the above condition applies as well as the client having to undergo medical tests.
When does the policy lapse?
This is an automatic termination of the policy by our system. The policy would lapse if it has cumulative arrears of three months and does not have surrender value. If it falls in to three months arrears and it has some value it would automatically make premium advances from the value to maintain the policy. However these advances made from the value of the policies would attract a 1.5% interest on a monthly basis until the arrears are cleared. This automatic premium advances is termed NON–FORFEITURE LOAN.
Why do you take my policy document when the policy matures or when a loan is given against the policy?
A policy document is surrendered when getting a loan so that it can not be used any where else as security. It’s taken at maturity for the same reasons and for the fact that the contract would have ceased at this stage.
Is it compulsory to apply for an encashment after my policy has accrued a surrender value?
No. Most insurance policies are long term investments; hence it is advisable to let the policy run until maturity so that one can reap the full benefits of the policy.
Do I have to repay the encashment?
Yes. Although it is not compulsory you are advised to do so, so that the long term value of your policy is not negatively affected.
Is there any interest charged on these encashments?
There is no interest charged on the encashment, but the value of your policy is affected by the withdrawal made in the policy. The value of the encashment is based on the number of units encashed as well as the unit price.
What is the initial period?
This is the period in the life of the policy where contributions in the policy are directed towards expenses and risks inherent in the policy such that no amounts are invested. The period varies according to the term of the policy.
May I cease contributions?
Provided a policy has acquired a surrender value, it may be made paid-up. In this case contributions cease and reduced benefits are enjoyed for the remainder of the policy term.In terms of section 100 of the Insurance Industry Act of 1987, you may within 90 days of signing your proposal form, or within 30 days of receipt of your policy document, inform Botswana Life Insurance Limited of your intention to cancel the policy. In this case you may expect a full refund of premiums paid.Should you stop paying your premiums after the policy has acquired a surrender value then you may leave your policy as a paid-up investment or you may request payment of the surrender value. If you decide to leave a policy with life cover in a paid-up state, the future cost of the life cover may gradually reduce the cash value eventually causing the policy to expire.
Do medical requirements include HIV testing?
If life cover is required the premium rates applicable to clients that submit a negative HIV anti-body test result are a fraction of those where one chooses not to go for HIV testing. In addition all ancillary benefits are available where the client has submitted a negative HIV anti-body test result. In this case, in the event that you contract AIDS later and die from it, you will be fully covered.If you do not wish to submit HIV test results the ancillary benefits listed above are not available for selection. The maximum sum assured is then limited to 5 times one’s annual salary, or P200 000, whichever is less.
Are there any medical requirements?
For plans with life cover, medical examinations may be required. This will depend on the amount of life cover, your age, habits, and personal and family health history.
Are there any expenses?
MOMPATI should be considered as a long-term investment as the initial expenses charged are high in relation to the premiums paid in the first year. After the policy has been in force for a period of approximately five years however, the effects of the expenses reduce, and positive returns can be expected. It is for this reason that Botswana Life Insurance Limited requires a minimum term of 10 years.