Level Term Life Plan
This is a pure term life assurance plan without any savings element, and contains a guaranteed renewal (with no medical examination requirements) every year with high-cum-comprehensive protection, and at a low premium. The yearly automatic renewable term plan is designed specially for the surviving members of your family who will receive the basic death benefit in the event of your premature death.
The premiums and the sum assured are level from inception for the duration of the term, making it easier for financial planning and giving you peace of mind in your golden years through guaranteed renewal.
The protection will automatically terminate at the end of payment term of the basic plan or when the life insured reaches the maximum insurance age of such optional benefits (whichever is earlier).
This plan also comes along with supplementary riders such as Waiver of Premium on Disability, Optional Accidental Death and Dismemberment Benefit and Critical Illnesses Benefit. Optional benefits should be enrolled at the time of application for the basic plan.
Decreasing Term Assurance Plan
Decreasing term life insurance is a term cover that provides a death benefit that decreases over time. The premiums stay constant for the period of the term, but the cash benefits decrease with each year. A lump sum is payable on the event of death, which decreases by a fixed amount during the period of the term, decreasing to nil by the end of the insured period.
For example, the benefit during the first year of a 10-year decreasing policy may be Kshs.1,000,000 and decrease by Kshs.100,000 every year. At the end of the 10th year, the face value is zero and coverage expires. Premiums for a decreasing policy usually remain level throughout the term, but much lower than level term life plan.
Decreasing term life insurance policies more suited for insuring financial obligations which reduce with time, such as bank or savings and credit society’s credit or debt, mortgages or other amortized loans.
There is no investment element with decreasing term life insurance, and as such, if no claim has been made, there is no maturity value payable at the end of the term.
Premiums will depend on the sum assured, the period of insurance cover, your age, and your sex.
Additional options can be added to increase the level of cover, although this in turn increases the premiums.
Value Added Term (VAT) Assurance
In a Value Added Term (VAT) Assurance there is more than protection. VAT combines both cash value and a tax-sheltered savings plan. Therefore, your premium payments are applied both for protection and savings.
If the life assured survives the term and no claim arises during the full term of the VAT Assurance, all premiums (100%) paid by the life assured and received by ICEA Limited will be refunded. In order to build these refunds, the premiums charged on VAT are higher than for other term covers.
This cover is suitable for those people who often wonder why they should insure their lives while the benefit will end up in the hands of beneficiaries in the unfortunate event of death, since it build these refunds.
