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Decreasing Term Assurance

The coverage is similar to the Level term duration, it can go for a certain number of years or till a certain age.

  • The decreasing refers to the death benefit. It declines until reaching Zero when the term is done.
  • Premium are usually the same during the duration, and sometimes can be paid before the duration of the coverage is over. For example, sometimes a decreasing term covering 20 years only needs premium paid for 12.
Advantages

Designed to cover specific decreasing obligations such as a loan. Cheaper than level term.

High cover for a nominal cost

Example: Male age 40 next birthday. To cover a principal amount of loan of Dhs 500,000 for a 20 year term the annual premium would be Dhs 1500 i.e. just over Dhs 4 per day.

Waiver of Premium

This additional benefit provides that if you are unable to follow any occupation, the present contribution to your plan will be paid in full by the company. This means that the level of protection you currently enjoy will not be affected in any way. The benefit commences six months after onset and notification of sickness or accident and will continue until the earliest of your return to work, the Plan expiry date or your 60th birthday.

Other important details

The NGI Loan Protection Plan is a reducing term assurance contract where the sum assured is payable within a specified term. There is no surrender value to the Plan. The contribution paying term is shorter than the coverage term. Examples of the coverage term and the contribution paying term are as follows:

Eligibility

The minimum age at entry is 18 next birthday and the maximum age at entry is 60 next birthday

Term

The minimum term of the Plan is 5 years and the maximum term is to age 65.

Contributions

The minimum annual contribution (including the policy fee)= USD 160 or AED 600.

Death benefit

The benefit payable on death is the Basic sum assured plus the sum assured in respect of any additional benefits.

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