As Diaspora Insurance we are always thriving to do the best for our clients guided by the TCF culture embedded in our way of doing business.
Critically, it is important to understand that pure protection insurance is different from savings where the account holder can be said to have saved so much and the savings can be withdrawn or if it’s an endowment plan there is a surrender value. With a policy like Diaspora Funeral Cash Plan there is no surrender value, and the policy cannot be liquidated as it only pays out on the death of the life insured. The policy benefits are also not transferrable.
Whilst the Diaspora Funeral Cash Plan policy has a guaranteed pay-out amount on claim, assuming all premiums are up to date, that does not make the policy a savings plan. Like any other pure protection policy, the policyholder is buying peace of mind and that is transfer of risk/claim benefit to the insurer for a small monthly premium. The premiums are paid in advance not in arrears and this implies and means that the policyholder is monthly paying for protection for the following month.
Pure protection insurance is also based on the principle of aggregation, where the monies collected from all policyholders month on month is used to support and settle claims as they arise. Reserves, underwriting and re-insurance are techniques used to mitigate risk especially in catastrophic circumstances.
As alluded earlier, on pure protection insurance, the policyholder literally pays for protection month on month and that is why if you miss premium payments the policy automatically lapses with surrender value.
The fact that Diaspora Funeral Cash Plan cover persists post 85 and the client continues to enjoy cover after stopping paying premiums is a very rare benefit that Diaspora Insurance is giving its clients as part of our TCF culture.
Think of policies like car insurance, as long as you need cover you pay premiums and if you stop the policy lapses. All other funeral insurance policies, whether cash or goods and services are also structured such as long a the policyholder need cover they pay irrespective of age. At Diaspora Insurance we treat customers fairly and we don’t want our clients who may be blessed with longevity to end up failing to pay late in retirement and consequently losing their cover, hence unlike an other insurer we shield our old clients from risk of dying without a policy by giving them free cover on turning 85.
