1. WHAT IS LIFE INSURANCE?
This is a means of insuring your life and/or your wife or the life of your husband and/or the life of your children.

In the event of the death of the person or persons insured under the policy the life cover or portion thereof in the case of more than one life being insured under the policy is paid out to the beneficiary named in the policy or the public curator if no beneficiary is named who in turn pays the life cover to the next-of-kin.

After about twelve years the cost of the life comver is more than offset by the yearly interest addition to the cash value and the cash value exceeds the premiums paid.

It is also a means of saving by either maintaining the policy to the maturity date or by setting aside a proportion of the fortnightly deduction as a savings.

You pay a relatively samll amount each fortnight usually not more than K10.00 and your life is insured along with any other life named in the policy for the life cover proportion thereof shown in the policy. If more than onle life is named in the policy then the life cover is divided equally on the lives named.

2. WHAT HAPPENS IF THE LIFE INSURED LIVES TO THE MATURITY DATE OF THE POLICY AND THE POLICY PREMIUMS ARE PAID TO MATURITY DATE?
The policy owner may continue the policy or if the policy owners chooses the deduction is ceased and upon cessation the policy cash vlaue less outstanding loans is paid to the policy owner. The paid to date of the policy should be paid to the maturity date for maximum return to the policy owner.

If the policy owner continues the policy the life cover continues on the lives insured but with a reducing life cover for those aged between 45 and 55 years. The policy can continue beyond age 55 but with no life cover. This is usually on policies with large outstanding loans when the whole deduction becomes a loan repayment.

3. WHAT HAPPENS IF THE PREMIUM IS NOT PAID BY THE POLICY OWNER PRIOR TO THE POLICY REACHING THE MATURITY DATE?
The life cover ceases. If the policy owner does not surrender the policy any value is held to the credit of the policy owner until claimed.

If the polic owner does surrender the policy the cash value less outstanding loans and debts is paid to the polict owner.

Remember that life insurance is a long term contract and if you think that you will not keep the policy going for a tleast ten years DO NOT COMPLETE THE APPLICATION FORM.

CAN LOANS BE TAKEN OUT USING THE POLICY AS SECURITY?
Yes, small loans are available after the policy has been in force for some time, usually at least one year.

Meaning of some words used in this guide

• DEDUCTION - the money taken from yur wage or salary each fortnight by yur employer and paid by them to Kwila. The deduction can be divided into premium, savings LR or FPDF or loan repayment.
• DEDUCTION INCREASES - these usually must go to savings and not to premiums.
• PREMIUM - the part of the deduction you choose to allocate to buy the life cover.
• SAVINGS - the part of the deduction you choose to allocate to savings either LR or FPDF.
• LOAN REPAYMENT - the part of the deduction you choose to allocate to repaying loans.
• LIFE COVER - this is the amount of money that Kwila pays out in the event of the death of the life insured named in the policy up to age 55. If more than one life is named the life cover is divided equally on the named lives.
• SUM ASSURED - same as life cover
• APPLICATION - the form completed and signed by the policy owner when applying for life insurance.
• PROPOSAL - same a sapplication
• POLICY CERTIFICATE - the document issued by Kwila to the policy owner confirming the existence of the contract and showing the contract details.
• INTEREST - the money added by Kwila each year to the cash value of the policy.
• BONUS - similar to interest but only payable in full on maturity date.
• SURRENDER - the permanent cancelling or cessation of the policy.
• INVESTMENT ASSURANCE - the name Kwila gives to the policy issued for investment life policies.
• UIO OR U 15 - the computer code used by Kwila to identify and investment life policy from other types of policies.
• LIFE INSURED - the person or persons shown in the policy who are insured by the life cover or part thereof.
• POLICY OWNER - the person named in the policy as the owner usually the person whose deduction is paying the premium on the policy.
• CLAIM - the act of claiming money payable under the policy in the event of the death of the life insured.
• MATURITY - the nominal date that the cash vlaue less loans and debts becomes payable to the policy owner.
• POLICY STATEMENT - the notice issued once a year by Kwila and sent to the policy owner shoing the policy balances.
• WITHDRAWALS - none allowed other than by way of loans or surrender
• LOAN STATEMENT - the notice issued twice a year by Kwila and sent to the policy owner showing the loans balance.
• FPDF - this is the Future Premium Deposit Fund and is a savings account on whihc interest of 6% per year is added. This account is used to repay loans or arrears of premium.
• SAVINGS LR - this is another savings account on which interest of 8% per year is added. This account is also used to repay loans or arrears of premium.
• LOANS - loands granted against cash vlaue of the policy. Only small loans are granted. When these are repaid or when there is a loan value net of outstanding loans another loan can be given.
• LOAN VALUE - the maximum amount Kwila is prepared to lend against a policy.
• GROSS - higher figure before reduction by outstandings or debts or charges.
• NET - lower figure after deduction of outstadnings or debts or charges.
• REFUND - the net value of the policy paid o the policy owner upon surrender of the policy.