Keyman Assurance
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Eligible ages:
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Minimum Age: 18 Years
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Maximum Age: 60 Years
NSIA Keyman Assurance
This product is a basic term assurance contract that is specifically designed for business men or women, traders, importers/exporters, key officers of organizations, partners in a firm and small business owners:
- 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 cash flow 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.
? Key Features
▣ 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 and determined by the policyholder
▣ The benefit 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, where it is used to secure a loan
▣ Policyholder pays a single premium (purchase price) or annual payments to NSIA Insurance 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 dependents: a win-win situation.
Medical examinations may be required in certain cases.
? Benefit
▣ On Death or Disability
NSIA Life pays the guaranteed sum assured to the policyholder’s named beneficiary/ies in the event of death, total permanent disability or diagnosis of a critical illness)
▣ On Discontinuation
In the unlikely event of the policyholder stopping payment of annual premium, no benefit is payable as the product is automatically discontinued. Since the product is very cheap, we recommend payment of a single premium to immediately obtain valuable life insurance protection for the specified period.
▣ On Maturity
On survival of the policyholder till the end of the specified period of cover, nothing is paid as the period of cover would have elapsed and he would have enjoyed a life insurance protection for the chosen period.
? Suitability
Term assurance is mostly used to cover periods in an individual’s life when the consequences of an early death would be very severe. Examples of such circumstances are:
▣ when a young family is growing
▣ when a mortgage or other loan is being repaid
▣ when dependents need income on death of the breadwinner
? Waiting Period
There is a month waiting period during which a client cannot claim on non-accidental death. However, where accidental death occurs during this period, total premiums paid would be returned.
