Group Life Term Insurance for Destiny Memorial Plans a Primer

Primer for Group Life Term Insurance

Objectives:

     1.  To help sellers and agencies become 100% knowledgeable on the insurance aspect of Destiny Memorial   Plans under DFPI and Prrepaid Memorial Services under Holy Gardens

     2. To aid the sellers in case IC is giving exams to DFPI sellers

     3.  To avoid misunderstanding between customers/planholders and the company.

     4.  To facilitate claims, just in case

Reality:

     Ill explained and ill understood ang insurance aspect.  Many sellers misrepresented on the cap

Nature of insurance:

      Term life insurance.  The plan holder is insured every year for his life.  The insurance is covers protection but has no savings aspect.  The premium is so low, about P0.30/1,000 per month.  As a term insurance, the coverage expires every year, every end of 12 months

Premium of the insurance - who pays, when paid?

      DFPI and or HGMP sponsors pays for the insurance premium for the protection of the planholder;buyer when insureable.  The premium is paid within 30 days after the insurer is given the data, and the said premium is for one year;  Thereafter, the premium is paid for 4 years on the 13 month of the plan

     A question is asked if the planholder is not insureable shall the premium be refunded to the plan holder.    - No

Insurer:

    The insurer is MB life, a trusted name in Life Insurance with head office at VGP Building in Ayala Avenue, Makati City.  It is over 40 years in business just like Holy Gardens who is on its 34th year serving the public

Who are insureable?

     This is determined form the questionnaire at the front of the PPA.  It is the task of the seller or the branch head or the CMO to determine if the buyer is insureable

     1. Age =   18 to 60 years old

     2.  No pre existing conditions

          1.  Cancer

          2.  Diabetes

          3.  High blood pressure

          4.  Previous operations

          5.  Currently undergoing intensive medical treatment

     3. Is not involved in high risk job as a soldier, policeman, fireman, seaman, deep sea diver

     4. is not involved in hazardous sports like skydiving, race car driving, etc.

     5. is not working  or living in high risk area kike Mindanao, Mt Province.  They can be covered but premium are high and the company will not shoulder the same

      The questionnaire shall be answered in the handwriting of the customer and or his representative or by our office staff under the former's supervision.  The blanks shall be filled up legibly and clearly without any erasures, and witnessed by the sponsoring seller

Amount of coverage

     The maximum amount for any single person (total if he has two or more lots) is only  P100,000 maximum.  The customer is insured  for the entire amount of his plan and not only on the outstanding balance (which was our previous coverrage.   Thus the insurance pays the balance of the obligation to DPFI and returns the amount paid to the designated benefiary.

    Thus if the buyer gets a P50,000 plan and has paid for the P25,000, the P25,000 as balance will be paid to DFPI and the P25,000 paid to be paid the beneficiary:  children or spouse of the planholder

Exclusions:

   The insurer will not pay any claims arising from deaths caused by force majeure like earthquakes, typhoons tsunami or lightning, and natural disaster or from civil disturbance like riots, civil war and the like;    or from pestilence and epidemic like Ebola, cholera, SARS; and from violence like murder, assassination, robbery hold up, kidnapping with homicide and murder

   The insurer shall however pay for deaths arising from accidents

Cessation of coverage:

    Coverage shall cease for any or all of the following conditions:

    1. Assignment or transfer of plan to third party

    2.  Full payment of the plan

    3.  Plan is in arrears.

    4.  Death of the customer

Other paper works:

    1.  Plan holder information sheet which shall be filed as soon as the initial payment of the customer, who is insureable,  is paid.  This is for the purpose of obtaining the individual policy.  Policy shall be issued by MB life or the company. It is the duty of the company to ascertain the correct age of the customer from his birth certificate, ID, SSS card, OSCA card 

   2. Claims form in case of death/claim to be accompanied by copy of the plan, the policy, death certificate, and certified copy of the birth certificate.  It shall be filed within 48 hours after death

      Claims shall be paid within 7 working days after the receipt of complete requirements.  However the insurer shall reserve the right to investigate the circumstances of the death and may check the neighbors, the attending MD, the hospital and other pertinent medical records. If in the opinion of the medical examiners and investigators, the declaration are not consistent with the cause of death, the claim may be denied and only return of premiums shall be the action of the insurer.  

Contestability period  

There is a one year contestability period within which all claims may be contested by the insurer:  its medical examiners and investigators.   In the industry it is an accepted practice that no claims are processed entertained during the contestability period.  The contestable period is resorted to ;preclude the very sick and terminally ill to insure.

   

    

The Holy Gardens Group - "THE MEMORIAL EXPERTS"

Holy Gardens Plus  - about sales of services as addition to the plots bought

Destiny Financial Plans Inc  - about duly licensed memorial plan for sales

Griefshare   -  free obit posting

Holy Gardens Best  - best pictures

Landscaping ideas - gorgeous landscaping ideas

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