Benefits

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Post Maturity Value

The maturity value is the amount paid to a policyholder when the policy has run its full term. The maturity value under an Endowment or Whole of Life is made up of the original sum assured plus bonuses accumulated over the years. The maturity value of a Money Back Term policy (MBT) involves a refund of premiums paid. Other term insurances do not have a maturity values when the period of insurance expires.

Bonuses

A bonus is similar to a dividend or interest credit and is a return on the policyholder’s investment based on the sum assured and existing bonuses and paid out only when the policy matures or on prior death. Endowment and Whole of Life policies are entitled to bonus distribution while term insurance does not get any bonus. Bonus rates vary from year to year and depend on the net surplus available for distribution following the actuarial valuation.

Disability Benefit

For a small extra premium the disability benefit is now available as supplementary benefit to be added to Whole of Life or Endowment assurance. In case of total and permanent disability of the life assured or the premium payer, premiums will be waived up to the end of the waiver period or when a certain age is reached. The benefit therefore involves wavering of premiums to be paid during the period of disability.

Accidental Death Benefit

This benefit is available to be added to Whole of Life and Endowment policies where the sum assured paid is doubled if death occurs accidentally. The benefit does not apply when the policy matures or runs its full term in that case only the sum assured and bonuses are paid.

Financial Services

Policy Loans

Once a Whole of Life or Endowment Assurance policy has been in force for two years, with two full years premiums paid, policyholders can apply for a loan. Interest rates are very reasonable. Alternatively, many other lending institutions will accept a life insurance policy as security for a loan.

Mortgages

Within limits, Samoa Life Assurance Corporation can make funds available to policy holders by way of first mortgage for purchase of land or construction/purchase of a residential house. Interest rates are generally very competitive in relation to the market as a whole.