FAQs for Bancassurance
“What is Bancassurance?”
Bancassurance is simply the distribution of insurance products through bank branches. In Bancassurance, the bank serves as a distributor of insurance company’s products to its clientele.
“When did EFU Life start Bancassurance?”
EFU Life started Bancassurance in early 2000s and now has the most number of Bancassurance partners in Pakistan.
“Which Banks are EFU Life’s Bancassurance partners?”
Currently, EFU Life has Bancassurance partnerships with the following banks:
- United Bank
- Allied Bank
- Faysal Bank
- Bank Alfalah
- JS Bank
- Standard Chartered Bank
- MCB Bank
- NIB Bank
- Silk Bank
- Bank of Punjab
- Askari Bank
- First Micro Finance Bank
- Samba Bank
“What are the benefits of purchasing a life insurance policy through Bancassurance?”
Bancassurance offers bank account holders an option to have their policy premiums deducted automatically throughout the term of the policy. Moreover, Bancassurance products are tailored to the need of the banking customers.
“What documents do I need to provide in order to apply for a life insurance policy? “
In order to apply for a life insurance policy, you only need to provide a copy of your CNIC. Bancassurance sales officer in the branch would get the following forms filled and signed from you:
- Insurance Application Form
- Policy Illustration of expected payouts
- Auto Debit Instruction Form
- Third Party Disclaimer
“In order to buy a new Life insurance policy, would I be required to undergo any medical examination?”
Depending upon the sum assured you apply for, EFU Life would decide whether or not a medical examination is required. In case it is required; EFU Life will pay for the medical examination. EFU Life has a network of doctors/medical facilities across Pakistan where all required medicals are done on credit.
“When would my insurance coverage under my life insurance policy start?”
Coverage under your life insurance policy would start once you receive the detailed policy documents directly from the insurance company on the address mentioned by you on the insurance application form.
“When would I get my policy documents from EFU Life?”
After receiving your application and the necessary documents, EFU Life will evaluate (underwrite) the case and if required, might ask you to undergo a medical examination. Once the evaluation process is completed, a decision on your application would be made. For all approved cases, policy documents would be dispatched to the clients directly at their correspondence address within seven (07) working days.
“What do my Policy Documents include?”
The policy document pack sent to you would include:
- Policy Schedule which summarizes all the important details related to your policy like your name, policy number, CNIC number, date of birth, Date of Commencement of Coverage, Nominee names & share, benefit structure of the policy, premium due date, premium amount, premium payment mode etc.
- Detailed terms & conditions of the policy including what it covers and what it doesn’t.
- Alongside, a copy of the signed application form and illustration is also sent for your reference and record.
- The receipt which confirms that a payment has been received in order to provide insurance coverage.
“What do I need to do with my Policy Documents?”
We suggest that you should go through all the documents in detail so that you have a clear understanding of all the aspects of your policy. Also, please check if all details mentioned on your policy schedule are correct.
“What is the importance of my policy document?”
Policy documents are of high importance as they are a mandatory requirement for all future policy related services/processes (alteration, surrender, claim etc.). Therefore, it is strongly recommended that you keep these policy documents at a safe place.
“What should I do if I am not satisfied with the detailed terms and conditions of the policy?”
EFU Life offers it’s policyholders a free-look period of fourteen (14) days during which you can decide whether or not to continue the policy. However, it is strongly recommended that you call us or contact your relevant bank branch for clarification before you decide to exercise your free-look period option.
“What if I have lost my policy documents?”
You can apply for a duplicate set of policy documents by signing an Indemnity Bond printed on a stamp paper worth Rs. 100. You can either contact your relevant bank branch or can contact us directly for assistance.
“How would I get to know that my policy is falling due for renewal? “
EFU Life would send you a renewal notice one (01) month prior to your policy due date. All you need to do is to maintain sufficient balance in your bank account marked for premium deductions at the time of buying the Bancassurance policy.
“What if I do not maintain sufficient funds for renewal payment in my account?”
In this case, EFU Life will send you a renewal reminder soon after your policy due date has passed requesting you to pay your renewal premium by maintaining funds in your bank account marked for premium deduction.
“Do I get any grace period for renewal premium payment?”
Yes, EFU Life gives every client a grace period of one (01) month for renewal premium payment during which the client remains cover under the benefit.
“What happens if I do not pay my renewal payment on due date and during the grace period?”
In case of non-receipt of renewal payment, your policy status would get changed to Lapsed, Auto-Non Forfeiture (ANF) or Paid-up depending upon your policy year and a relevant letter is also sent to the policyholder mentioning the procedure for reinstatement (reactivation) of policy.
“How would my policy coverage get affected under ‘Lapsed’, ‘ANF’ and ‘Paid-up’ statuses?”
In case of non-receipt of renewal payment, the policy is converted into any of the following;
- Lapsed Policy when a policyholder does not pay the first renewal premium, the policy gets lapsed whereby all the benefits under the policy are seized.
- Auto Non-Forfeiture (ANF) Policy when a policyholder does not pay a renewal premium having previously paid two or more annualized premiums in the policy, policy status is converted into ANF. Under ANF status, insurance coverage under the main plan of the policy (only) remains active for one (01) year while coverage under all riders in the policy is seized.
- Paid-up Policy when a policy has remained in ANF status and policyholder does not pay another (consecutive) renewal premium, policy status is changed from ANF to Paid-up. Under paid-up status, the insurance element in the policy is completely removed but the underlying cash value of the policy continues to grow based on fluctuation in unit rate. Under this status, payout at anytime is limited to the cash value under the policy.
“How can I reinstate (reactivate) coverage under my policy in case it is lapsed?”
You can reinstate (reactivate) your insurance policy by submitting an application for reinstatement and special health declaration form (both available in the download section) along with due renewal premium(s) in your relevant bank branch. EFU Life would process the request and would reinstate the policy after due underwriting (risk evaluation).
“Would I get any written confirmation once I have paid my renewal premium?”
Yes indeed. EFU Life would send you an sms as soon as your premium is received and the policy is renewed followed by a renewal confirmation letter along with a formal premium receipt.
“What if I want to make changes in my policy?”
All non financial changes in the policy like change of nominee, address, phone number etc. can be requested at any time during the course of the policy. While all financial changes to the policy like change in premium amount, mode, sum assured, addition/deletion of policy riders etc. can only be requested one (01) month prior to policy anniversary.
“How can I make non-financial changes to my policy?”
You can request non-financial changes in your policy by visiting your relevant bank branch and filling up an application for Policy Alteration/Change in Nomination (available in the download section). You can also submit the filled alteration form directly at csd@efulife.com.
“How can I make financial changes to my policy?”
All financial changes can be requested one month prior to policy anniversary by visiting your relevant bank branch and filling up the application for Policy Alteration (available in the download section).
“Alongside the regular premium, can I invest additional amount into my policy?”
Yes, you can invest additional amount in your policy under an option called Fund Acceleration Premium (FAP) if it is available in your policy. This benefit acknowledges the fact that you may have surplus cash available at any point in your life as it gives you the flexibility to top-up your savings by depositing your surplus funds as lump sum contributions in the Plan. The FAP payments will increase the cash value of your plan, but will not affect the sum assured.
“Can I encash my policy prior to completion of my policy term?”
Yes you can. All policyholders have an option of encashing their policy for its underlying cash value, any time after payment of at-least two (02) annual premiums. The process of early encashment of policy is called Policy Surrender Process.
“What should I do if I want to surrender my policy? “
After payment of at-least two annual premiums, a policy can be surrendered completely or partially for its cash value. You can submit an application for Policy Surrender (available in the download section) along with your original policy documents and zakat exemption certificate to your relevant bank branch. You would also need to un-mark your Auto Debit Instruction to avoid future deductions against your policy. EFU Life will dispatch the surrender cheque directly at your correspondence address.
“What is the difference between partial and full surrender?”
Partial Surrender: When a policyholder wishes to withdraw some cash value out of the policy and at the same time intends to continue the policy, he can avail the option of partial surrender. In partial surrender, the benefits in the policy are proportionally reduced.
Full Surrender: When a policyholder wishes to withdraw the full cash value available in the policy, he can avail the option of full surrender. After the full surrender, your policy is closed and its benefits are stopped forever.
“How can one lodge a claim and what documents are required?”
A claim can be lodged by contacting EFU Life directly or through the relevant bank branch. An online claim intimation form is also available in the download section of our website. Once a claim is lodged, it is assessed and requirements (if any) are communicated to the claimant in writing. Upon fulfillment of all necessary requirements, claim is settled in accordance with the terms and conditions mentioned in the policy documents.
“What is a Unit?”
It is a component of the Fund in a unit linked policy.
“How does unit linking work?”
Under unit-linking system, insurance companies utilize a certain percentage of premiums to buy units in an investment fund. The units of a fund are just like shares of any company but carry no dividends as such. These funds are managed by the experts who utilize their profound knowledge of financial markets to reap the maximum investment benefit for clients. Of course, the performance of the fund is subject to economic conditions of the market and thereby the unit price of any fund varies due to prevailing market scenario.
“What usually is the trend of unit prices in life insurance policies?”
As the funds are judiciously managed by investment experts, normally the trend of unit prices on a longer term remains up-sloping. From the investment point of view, the growth and return attainable from the fund is usually favorable.
“Where does EFU Life invest its funds?”
A typical composite fund managed by the life company invests in:
- Equity
- Mutual Funds
- Government Securities
- Other Fixed Income Securities
“What is the benefit of buying a unit linked policy? “
The fundamental purpose of life insurance is to provide money to meet financial losses caused by death, disability, or illnesses. However, unit-linked life insurance policies also provide investment benefits that is, money is payable on survival of the life assured rather than only on death.
“I wish to know the Fund my Policy is linked to?”
Should you wish to know the name of the fund your policy is linked to, please refer to the Policy Schedule included in your Policy Documents. The name of the Fund is mentioned under the section Special Condition on your Policy Schedule. Or you can also refer back to the illustration you signed at the time of buying your policy.
“What is the difference between Offer and Bid price of a fund?”
Each unit of a fund has two prices at a time; the Offer price at which the investor buys into the fund and the Bid price at which the investor sells out the fund.
The difference between the Offer & Bid price is the spread which is charged by the Company on each basic premium. This Bid/Offer spread is normal and customary charge levied by all life insurance companies across the world, who market unit-linked policies.
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“What is Cash Value?”
Cash Value of a policy is defined as the amount that has been accumulated in the underlying investment fund to which that policy is linked. Cash value is a product of the units available in your policy and the latest bid price.
“How can I know the current cash value of my Policy?”
You can determine the cash value of your policy at any time by simply multiplying the number of units allocated in your policy to the Bid Price of the fund your policy is linked to. Also, you can contact us anytime to get the current cash value of your policy.
“How can I know the Bid Price of a fund? “
The Bid Prices are published in the newspapers and can also be viewed on our website www.efulife.com. It is quoted daily (on all working days) after the valuation of fund.
“What will be the final Cash Value of my Policy at its maturity?”
The cash value of the policy is dependent upon the performance of the underlying fund to which your policy is linked. Since the performance of fund is subject to economic conditions, it is not possible to quote the exact cash value of your policy in advance. However, an Illustration of projected cash value of your policy based on certain assumptions was signed by you at the time of buying the policy. You can refer to that to get an idea of the expected cash values at maturity.
“I have a query. How do I contact EFU Life?”
We love to hear from our clients! We consider your feedback crucial in our continuous effort to improve our services. You could contact us through the following means:
- You can either visit us personally or can write to us at our Head Office on the following address:
EFU Life Assurance Ltd.
EFU Life House, Plot No.112, 8th East Street, Phase 1, DHA, Karachi, Pakistan.
- You can also email us at csd@efulife.com
- You can fax us at +92-21-34537519 or +92-21-34537512
- You can call at our Call Centre No. 111-338-111
- You can contact us through e-Services on our Website. Click here for more information on e-Services.
