End of Service Benefit Plan (Maximum Investment Endowment Assurance) FAQs
1. What type of policy is this?
It is a universal endowment assurance that combines savings and insurance protection. It provides supplementary income and covers up to age 60.
2. How does the policy operate?
A savings account is created. Whereby 70% of total premiums are credited, while charges and risk benefits premium is 30% of the total premiums are deducted. The account earns bonuses based on the profit participation method chosen.
3. How are premiums paid?
Premiums are paid as stated in the Policy Schedule and may increase annually under the benefit/premium escalator rules.
4. What happens on death of the Policyholder?
The benefit paid will be the greater of:
5. What happens if the Policyholder survives to the end of the term?
The accumulated savings account is paid out. The Policyholder may also choose to purchase an annuity with the accumulated value.
6. What annuity options are available?
On survival, the Policyholder can request to convert the accumulated savings into an annuity. GLICO LIFE will issue a certificate with the annuity terms.
7. Can benefits or premiums be reviewed?
Yes. If the cash value reduces to zero, GLICO LIFE may review the policy terms and advise the Policyholder on actions needed to keep benefits in force.
8. When does cash value build up?
Cash value is acquired after premiums have been paid for the qualifying period set out in the Policy Schedule.
9. Can I make partial withdrawals?
Yes. After cash value is acquired and contributing for 24 months consistently, you can withdraw up to 50% of the accumulated savings, less six months’ premiums and charges.
10. Can I take a loan on the policy?
Yes. Loans are available once cash value is acquired. The loan amount cannot exceed the cash value and will attract interest at rates set by GLICO LIFE.
11. Can the policy be converted to paid-up assurance?
Yes, if the cash value (after debts) is at least GH¢50. The policy can be converted to paid-up assurance, but rider covers will end.
12. What happens if I surrender the policy?
You will receive a percentage of the accumulated fund depending on how long you’ve held the policy:
13. When does the policy terminate?
The policy ends if:
14. What is “the Contract”?
The contract is the policy and any supplementary agreements attached. It is issued based on the information provided by the Policyholder being true to the best of their knowledge.
15. Can I assign my policy to someone else?
Yes. GLICO LIFE will record assignments at its Head Office once you provide documentary proof. However, GLICO LIFE does not guarantee the validity of the assignment.
16. How can I pay premiums?
Premiums can be paid through:
Premiums are payable monthly in advance, but you may also pay quarterly, half-yearly, or annually.
17. What happens if I miss premium payments?
18. Who can be a beneficiary?
Beneficiaries only have rights after the Policyholder’s death. They cannot claim benefits during the Policyholder’s lifetime or if they die before the Policyholder. The Policyholder can change beneficiaries at any time by written notice to GLICO LIFE.
19. What if the Policyholder’s age was misstated?
Benefits will be adjusted to what the premiums would have purchased at the correct age.
20. Can GLICO LIFE contest my policy?
No, after the policy has been active for two years, except for non-payment of premiums.
21. What happens if I miss payments but have cash value in the policy?
The policy will remain in force if the cash value is enough to cover at least a quarterly premium plus interest. If not, the policy lapses.
22. Can a lapsed policy be reinstated?
Yes. A lapsed or paid-up policy can be reinstated within 24 months, subject to proof of good health and payment of overdue premiums.
23. How do I make a claim?
Claims must be submitted to GLICO LIFE with proof of the event and claimant’s title. Required documents include:
24. What happens if the Policyholder commits suicide?
If suicide occurs within two years of policy issue or reinstatement, the policy becomes void and premiums paid are refunded without interest.
25. How do benefits and premiums increase?
Benefits increase by 5% annually and premiums by 10% annually. Higher escalation rates can be chosen at inception. Cover for attached riders also increases annually.
26. In what currency are payments made?
All payments are made in the lawful currency of Ghana.
27. Which law governs the policy?
The policy is governed by the laws of Ghana and disputes are handled by Ghanaian courts.
28. When does the policy become binding?
The policy only becomes binding when:
29. Can policy terms be changed or waived?
No. Terms can only be changed through an official Endorsement signed by GLICO LIFE.
30. Does the policy restrict occupation, residence, or travel?
No. The policy is free of restrictions unless specifically stated otherwise.
31. What do key terms mean?
Accident Indemnity Benefit Rider – FAQ
1. What is the Accident Indemnity Benefit Rider?
It is an extra cover added to your basic policy. If you suffer injuries from an accident that lead to death, total disablement, partial disablement, or dismemberment within 90 days of the accident, GLICO LIFE will pay benefits according to the rider terms.
2. What benefits are available under this rider?
3. Are there limits to the benefits?
Yes. The total amount payable under annuity, death, and dismemberment cannot exceed the sum assured under this rider.
4. What happens if I claim for dismemberment and disablement together? Only one benefit is paid. If dismemberment is claimed, disablement benefits stop, and vice versa.
5. When does this rider end?
The rider ends when:
6. Do I need to inform GLICO LIFE if I change jobs?
Yes. If you change occupation, you must notify GLICO LIFE. Premiums may be adjusted. If you fail to notify, benefits may be reduced.
7. What exclusions apply?
No benefits are paid if the accident is caused by:
8. What happens if the rider is added after the main policy started?
The Incontestability and Suicide provisions apply from the rider’s effective date, not the original policy date.
Hospital Cash Income Rider – FAQ
1. What is the Hospital Cash Income Rider?
It is an extra cover added to your policy. If you or your dependants are admitted to hospital as in-patients due to sickness or injury, GLICO LIFE pays a Daily Cash Income benefit.
2. When does the benefit start?
3. How are repeated hospital stays treated?
If you are re-admitted within 90 days of a previous hospital stay for the same cause, it is treated as a continuation. After 90 days, it is treated as a new confinement.
4. Who receives the benefit payment?
The benefit is paid directly to the Assured or their legal representative, regardless of the actual hospital expenses.
5. Can benefits be reduced?
Yes. If the monthly premium paid under this rider is less than GH¢1.00 per unit of GH¢0.50 Daily Cash Income, the benefit will be reduced proportionately.
6. Do I need to notify GLICO LIFE of hospital admission? Yes. Written notice must be given within 30 days of hospital admission.
7. When does this rider end? The rider ends when:
8. What exclusions apply? No benefits are paid if hospital admission is due to:
Term Assurance (Death Benefit) Rider – FAQ
1. What is the Term Assurance Rider?
It is an extra death cover added to your basic policy. If the Life Assured dies before the expiry date of the rider, GLICO LIFE pays the additional sum assured stated in the rider schedule.
2. How long do I have to pay premiums?
You have a 30-day grace period to pay premiums. If a benefit becomes payable during this period, any unpaid premium will be deducted from the benefit.
3. How are claims made?
Claims must be submitted to GLICO LIFE with:
If death occurs within two years of issue and no medical report is provided, only the premiums paid will be refunded.
4. What happens if premiums paid are less than two years’ worth?
The death benefit will be reduced proportionately to match the premiums actually paid.
5. What if the age of the Life Assured was misstated?
Benefits will be adjusted to what the premiums would have purchased at the correct age.
6. What happens in the case of suicide?
If the Life Assured commits suicide within two years of the rider’s effective date or reinstatement, the rider becomes void. Only premiums paid will be refunded, except where third-party interests apply.
7. Can GLICO LIFE contest the rider?
No. After the rider has been active for two years, it cannot be contested except for non-payment of premiums.
8. When does the rider end?
The rider ends when:
9. What exclusions apply?
No benefits are paid if death is caused by:
In such cases, only the premiums paid under the rider will be refunded without interest.
10. What happens if a fraudulent claim is made?
If fraud is detected, all benefits under the rider are forfeited.