FAQs

How Can I be sure that their needs will be catered for?

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.

What is the difference between a funeral and a death benefit?

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.

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.

What could prevent you from achieving your goals?

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.

How do we claim funds remitted to the Guardian Fund?

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.

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.

How flexible are these variations of MOMPATI?

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.

What is the difference between life cover and pure endowment policies?

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.

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.

May I “cash-in” my policy prior to its maturity?

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).

Term of Policy (Years) Initial Period (Years)
10 1
11-15 2
16+ 3

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.

What happens when my needs change?

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

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.

What additional benefits can I enjoy under my policy?

The following ancillary benefits can be added:

Capital Disability

To pay a lump sum if you are permanently and totally disabled as a result of injury or illness.

Dread Disease Benefit

To pay a lump sum if you suffer from one of the following diseases; heart attack, stroke, cancer, renal failure, paraplegia, blindness, chronic coronary artery disease, heart valve replacement, major organ transplant or disease of the aorta. You will also be covered in the event of a clinical diagnosis of AIDS.

Accidental Death

To pay a lump sum if you die as a direct result of bodily injury caused by violent, accidental, external and visible means within three calendar months of the accident.

Family Funeral Benefit

Provides cover for the immediate family of the insured. Cover can also be taken for any two parents. The insured and the insured’s family are covered up to the termination age. A maximum of six children may be covered.

Waiver of Premiums

This benefit waives future premiums in the event of the payor’s disability or death. Return of Premium With this benefit, on death all premiums paid to date are returned to the payor.

Extended Family Funeral Benefit

Provides cover for the extended family of the insured. Cover can be taken for any spouse, children, parents, or parents-in-law not covered by the Family Funeral Benefit (offered as an ancillary benefit by Botswana Life). Cover extends to brothers, sisters, brothers-in-law, sisters-in-law, nephews, nieces, grandparents, grandchildren, adopted children and traditional wives. The insured’s family are covered up to the date on which the insured attains the age of 65; or would have attained the age of 65, should the insured have died before then; or the date on which the policy matures, which ever occurs first.

How do I make an accurate assessment of my needs?

Let us guide you through an example.

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.

Can I cede my policy?

All MOMPATI policies (excluding Retirement Annuities) can be ceded. A Financial Institution may require this when you borrow money. Ceding a policy transfers full rights to the policy value and death benefit from the owner to the cessionary.

What are your goals in life?

To own your family home, privately educate your children, start a business or a fruitful retirement.

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 dead
  • Identity of the deceased
  • Identity card of the claimant/beneficiaries
What is an encashment?

An encashment is the withdrawal of a certain percentage of the accrued value of a policy.

What plans can I choose from?

Having discussed your needs with your financial advisor or broker you should find that one of the following variations of MOMPATI is suitable:

  • Whole Life - life cover and investment until death
  • Endowment - life cover and investment for a specified term
  • Pure Endowment - investment only (no life cover) for a specified term
  • Retirement Annuity - build up of a retirement fund until retirement age
  • Single Premium - lump sum investment for any period of 5 years
  • Pure Endowment or more
  • Single Premium - lump sum pension transfer from an Retirement Annuity occupational pension scheme or voluntary contribution.

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