Enhanced GLICO Life Savings Plan – FAQs
1. What type of policy is this?
This is an endowment plan. It helps you save towards your financial goals and guarantees a lump sum payment at the end of the policy term. It also provides benefits in case of death or total permanent disability.
2. Who can take this policy?
Only the policyholder is covered. You must be between 18 and 55 years old to enroll.
3. How long does the policy last?
You can choose a policy term between 10 years (minimum) and 20 years (maximum).
4. What happens if the policyholder dies?
If death occurs after the 6-month waiting period, 50% of the guaranteed sum assured is paid to the named beneficiaries. In addition, a one-time Family Upkeep benefit (5% of the death benefit) is paid to help with living expenses.
5. What is the Total Permanent Disability benefit?
If the policyholder becomes totally and permanently disabled due to accident or illness, a lump sum of up to 100% of the death benefit is paid, depending on the severity. The deferred period for this benefit is 6 months.
6. What counts as total permanent disability? GLICO LIFE recognizes total permanent disability as:
7. What is the Family Support benefit?
Every 5 years, the policy pays 5% of the death benefit sum assured if premiums have been paid regularly. This helps support the family while the policy is still active.
8. Can I make extra payments?
Yes. You can make lump sum payments during the policy term. These are invested, and you receive 80% of the investment returns at policy maturity.
9. What is the Waiver of Premium?
If the policyholder dies or becomes totally and permanently disabled, GLICO LIFE will continue paying the premiums until maturity. However, benefit escalation stops once this waiver is activated.
10. What do I get at maturity?
At the end of the policy term, you receive the guaranteed lump sum assured plus any extra lump sum payments you made during the policy.
11. How do benefits increase over time?
Benefits automatically increase by 5% each year, and premiums increase by 10% each year. You can choose higher escalation rates if you prefer.
12. What is a premium holiday?
After paying premiums continuously for 24 months, you can take a one-month break from paying premiums once a year. You must notify GLICO LIFE at least one month in advance.
13. What is the waiting period?
There is a 6-month waiting period. If death or disability occurs during this time, premiums paid will be refunded. However, if death is accidental, the death benefit will be paid.
14. Can I surrender the policy before maturity?
Yes. You can surrender the policy and receive a percentage of the accumulated fund depending on how long you’ve held the policy. For example:
15. When does the policy end? The policy ends if:
16. What is “the Contract”?
The contract is the policy itself, plus any supplementary agreements attached. It is issued based on the information you provide in your application and declaration.
17. In what currency are payments made?
All payments to and from GLICO LIFE are made in the lawful currency of Ghana.
18. Which law governs this policy?
The policy is governed by the laws of Ghana and disputes are handled by Ghanaian courts.
19. How are disputes resolved?
GLICO LIFE and the policyholder will first try to settle disputes amicably. If unresolved within 30 days, the matter will be referred to the National Insurance Commission.
20. 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.
21. How can I pay premiums? Premiums can be paid through:
Premiums are due monthly in advance but can also be paid quarterly, half-yearly, or annually.
22. What happens if I miss premium payments?
23. Can my policy lapse?
Yes, in the first year if premiums are missed for 3 months. After the first year, the policy will not lapse completely, but benefits may be reduced until premiums are reinstated.
24. 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:
25. What if the policyholder’s age was misstated?
If the age is misstated, benefits will be adjusted to what the paid premiums would have purchased at the correct age.
26. How are proceeds paid at maturity? You can choose:
27. Are there travel restrictions?
No travel restrictions apply while the policy is active. However, the policyholder must be a permanent resident of Ghana when taking out the policy. Benefits may not be paid if the policyholder is permanently resident abroad.
28. Can a lapsed policy be reinstated?
Yes, within 13 months of default, if you:
29. What happens if the policyholder commits suicide?
If suicide occurs within 2 years of issue or reinstatement, only the premiums paid will be refunded, except where third-party interests apply.
30. What is Waiver of Premium?
If the policyholder dies or becomes totally and permanently disabled, GLICO LIFE will pay the premiums until maturity. Benefit escalation stops once this waiver is activated.
31. Can GLICO LIFE investigate my claim?
Yes. GLICO LIFE has the right to investigate claims before paying benefits.
32. What is Incontestability?
After the policy has been active for 2 years, GLICO LIFE cannot contest it except for non-payment of premiums.
33. Are there exclusions? Yes. No benefits are paid for: