Features Of Life (Takaful)

Insurance Policies
 Outline of presentation
• Payment of Premium
• Grace Period
• Revival of Lapsed Policies
• Paid-up Policies
• Surrender Value
• Suicide
 Payment of Premium
• Premiums are payable yearly in advance
directly to Company.
• Advance payments of half-yearly, quarterly
and monthly premiums will be accepted as
installments of the yearly premiums.
• Receipts for premiums are valid only if issued
on forms prescribed and signed by its duly
authorized officers.
 Grace Period
• The policyholders can pay to Company any premium
within a grace period of 31 days after it falls due.
• If the Life Insured dies during the grace period, before
the due premium is received, then the due premium
will be treated as received, but it will be deducted from
whatever amount is otherwise payable.
• If the grace period expires before due premium is
received by Company, the Policy will lapse unless it is
kept inforce under the “Automatic Non-forfeiture”
clause of the Policy.
• The lapse date will be taken as the due date of the
premium in default.
• No. claim whatsoever shall lie against Company, under
a lapsed policy.
 Revival of Lapsed Policies

• A lapsed policy may be considered for revival

upon receipt of evidence, free of cost and
satisfactory to the company that the life
insured is eligible for life insurance.
 Paid-up Policies
• The insurance company will convert this policy
into a paid-up policy, at the written request of
the policyholder, provided the policy has been
in force for at least two consecutive policy
years and no premiums are in default.
• No further premiums will be payable but the
sum insured will be reduced.
• The reduced paid-up sum insured will be
quoted by the company on the request of the
policyholder.
 Continues..
• Any bonuses attached to the policy will be
taken into consideration while determining
the paid-up sum insured.
• A policy once paid-up will not be entitled to
any further bonuses.
 Surrender Value
• This policy will acquire a surrender value after
it has been inforce for at least two consecutive
years provided no premiums are in default.
• The surrender value will be quoted by
Company on request of the policyholder.
• The surrender value is guaranteed to be not
less than 30% of “aggregate premiums” LESS
any amounts already paid to the Company
under this policy.
• Aggregate premiums mean all premiums paid
under the policy excluding the following:
• Premiums for the first policy year
• Extra premiums; and
• Premiums for any supplementary covers.
 Continues…
• This policy may be surrendered at the written
request of the policyholder.
• Company will then pay him/her the net
surrender value of the policy (if any).
• “Net surrender value” wherever it appears in
this policy means the surrender value of the
policy LESS outstanding dues of Company for
loans given and automatic premium loans
together with accrued profit or return.
 Suicide

• If the life insured commits suicide within

thirteen months from the date this policy was
signed or within thirteen months from the
date this policy was last revived then the
Company will only return premiums actually
received under this policy.
• Persistency
• Co insurance
• Co takaful
• Reinsurance
• Retrocessioniare
• Chapter 10