This product is a variation of the basic term assurance contract and it is specifically designed for business men or women, traders, importers/exporters, key officers of organizations, partners in a firm and small business owners:
The main aims of a group life scheme are as follows:
- Individual commercial bank borrowers (businessmen, traders, importers/exporters etc.)
- Key officers of organizations whose premature death may cause financial difficulties for the organization
- Partners who would require immediate cash to buy out a deceased partner, thus protecting the company’s cashflow from the negative effect of the partner’s unexpected death
- Small business owners who want to ensure that their businesses continue to run in the event of death.
- Payment of a guaranteed sum of money (sum assured) if death of the life assured occurs within a specific period of time
- Payment is also made in case of total permanent disability or diagnosis of a critical illness
- Duration of cover is flexible e.g. 5 years, 10 years or more
- The amount payable is specified in advance by the policyholder
- Keyman is usually arranged for large sums of money hence the minimum guaranteed benefit (sum assured) permissible is Five Hundred Thousand Naira (N500,000)
- Payment is made to a named beneficiary who could be an individual or an organization
- Benefit serves as collateral for loan
- Policyholder pays a single premium (purchase price) or annual payments to NSIA Life Assurance Limited to secure the guaranteed benefit
- As with every other variation of Term Assurance contracts, NSIA Keyman Assurance product is very cheap
- Where used for loans, the lender recoups outstanding loan on death of the life assured and the physical assets secured with loan remains with dependants: a win-win situation.
- Medical examinations may be required in certain cases
On Death or Disability
NSIA Life pays the guaranteed sum assured to the named beneficiary/ies in the event of death or total permanent disability. In this case, the beneficiary could be a creditor bank, an organization or partnership. The guaranteed sum assured could be a fixed amount, outstanding loan balance and interest or a deceased partner’s share in a business venture.
In the unlikely event of the policyholder stopping payment of annual premium, no benefit is payable as the product is automatically discontinued. As the product is very cheap, we recommend payment of a single premium to immediately obtain valuable life insurance protection for the specified period.
On survival of the policyholder or life assured till the end of the specified period of cover, nothing is paid as the period of cover would have elapsed and life insurance protection would have been provided by NSIA Life.