FAQs

An interest of 1.5 percent per month is charged on the loan balance.

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.

This refers to protection against future loss in exchange of periodic payments.

Yes. There are two main reasons for repaying the loan. Firstly the long term growth of the policy is not affected and secondly the full amount of the benefit will be payable when the policy matures.

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.

MOMPATI is an effective assurance and investment programme that ensures the attainment of your individual and family financial goals.

It is not possible to know the maturity value of any policy before it matures. This is so because contributions made in all the policies are invested and the value is calculated using the current unit price which fluctuates on a monthly basis.

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.

With the UNIVERSAL LIFE PROGRAMME (Mompati) long term insurance needs can be tailored to individual requirements. These may include general needs like capital build-up for children’s education, starting a business or more formal requirements such as the provision of a retirement fund, providing alternative income or lump sum in the case of a breadwinner’s premature death, serious illness or disability. Needs may also include more specialized areas like business assurance. The list is as wide as individual needs.

Both are death claims,but the death of a policy holder or owner who is also the insured , will result in a death claim and the closure of that policy. Whereas , covered persons will receive funeral benefits.

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.

Permanent disability or death of the breadwinner, difficulty in following an informal saving plan, lack of investment expertise and limited options in investment portfolios. Your financial advisor or broker will assist you in the important task of assessing your immediate and long-term needs, so that the policy you take is tailored to your specific needs.

Proceeds forwarded to the guardian fund are for minor beneficiaries and deceased persons. Upon receipt of the money, the guardian fund communicates the claiming procedure with the relatives.

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.

Each recurring premium plan under MOMPATI must be arranged for a minimum term of 10 years. Where life cover is included, the minimum sum assured, i.e. the minimum sum guaranteed to be paid in the event of eligible death is P10 000.

The premium (the regular monthly payment) you pay is determined by you, subject to minimum premium requirements and minimum premium levels if life cover is taken. Ancillary benefits, for example, disability benefit, accidental death benefit, family funeral benefit, etc. may be added, or removed on any anniversary during the term of the policy.

An anti-inflation annual premium update facility may be incorporated in the plan and if elected, the basic death benefit may also be automatically increased. Subject to certain constraints, the premium, the sum assured, update options or ancillary benefit levels may be changed at any time.

Life cover is the amount of the benefit payable on the death of the insured during the term of the policy. A pure endowment policy is a policy with no life cover: a pure investment 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.

After the “initial period” as stipulated in the table below, provided that the policy is in force, it may be terminated for its cash value (surrendered).

However, it is never advisable to surrender a policy, especially in its early years, as this will cause you to lose money. If the policy is surrendered after only 3 years premiums have been paid, then it is unlikely that the cash value will exceed the premiums paid.

The flexibility of MOMPATI allows your policy to remain meaningful when your needs change. It can be changed to suit your changed circumstances.

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.