Should death occur during the policy term, the benefit payable shall be the life cover sum assured applicable at the time of death. There are two options allowable for benefit payment which you have to choose from:
Option 1: A lump sum benefit. This implies that a one-off payment of the sum assured will be made if death occurs within the policy term. For example, a 5-year policy is chosen with a sum assured of N5, 000,000. Assuming that premiums are paid to date, if death occurs in the third year, N5,000,000 is payable as a one-off payment. This one-off payment also applies to the Critical Illness and Permanent Total Disablement (PTD) covers, where selected.
Option 2: An annual benefit payment for the outstanding school years. As an illustration, if a policyholder chooses this option for a N10 Million sum assured and a 5-year policy term, the benefit payable on death in the 2nd year will be N2 Million annually for the outstanding term of 3 years. For Critical Illness and Permanent Total Disablement (PTD) covers, the benefits are paid similarly.