FAQs

All MOMPATI policies (excluding Retirement Annuities) can be ceded. A Financial Institution may require this when you borrow money. Ceding a policy transfers full rights to the policy value and death benefit from the owner to the cessionary.

It is not possible to know the maturity value of any policy before it matures. This is so because contributions made in all the policies are invested and the value is calculated using the current unit price which fluctuates on a monthly basis.

Yes. There are two main reasons for repaying the loan. Firstly the long term growth of the policy is not affected and secondly the full amount of the benefit will be payable when the policy matures.

An interest of 1.5 percent per month is charged on the loan balance.

What is the minimum/maximum that one can apply for?

No. The Government is providing a tax relief on contributions for pension policies, a tax free investment and tax free cash at retirement; it is for these reasons that funds should not be borrowed from pension policies. Pension policies can neither be surrendered, nor be used as a security at the Bank.

Anyone who has a policy that qualifies for a loan. This policy would have passed the initial period and acquired surrender value.

Ex IGI, Ex- BIC, and all Mompati policies excluding those mentioned above for encashments.

Anyone who has any of the above policies with Botswana Life and that policy having passed the initial period and has a surrender value. The amount that can be encashed is 60% of the surrender value of the policy.

Tshireletso (UTSH) policies, Single premium (SPPE) policies, Educational (ULM3&ULM4) policies, and EX-BIC (BIF5, BIF7) policies.

An encashment is the withdrawal of a certain percentage of the accrued value of a policy.

The following are required for a funeral claim:

• Death certificate/notice of death/Letter from a local chief with three witnesses indicating that the person is dead
• Identity of the deceased
• Identity card of the claimant/beneficiaries

The following ancillary benefits can be added:

Capital Disability

To pay a lump sum if you are permanently and totally disabled as a result of injury or illness.

Dread Disease Benefit

To pay a lump sum if you suffer from one of the following diseases; heart attack, stroke, cancer, renal failure, paraplegia, blindness, chronic coronary artery disease, heart valve replacement, major organ transplant or disease of the aorta. You will also be covered in the event of a clinical diagnosis of AIDS.

Accidental Death

To pay a lump sum if you die as a direct result of bodily injury caused by violent, accidental, external and visible means within three calendar months of the accident.

Family Funeral Benefit

Provides cover for the immediate family of the insured. Cover can also be taken for any two parents. The insured and the insured’s family are covered up to the termination age. A maximum of six children may be covered.

Waiver of Premiums

This benefit waives future premiums in the event of the payor’s disability or death. Return of Premium With this benefit, on death all premiums paid to date are returned to the payor.

Extended Family Funeral Benefit

Provides cover for the extended family of the insured. Cover can be taken for any spouse, children, parents, or parents-in-law not covered by the Family Funeral Benefit (offered as an ancillary benefit by Botswana Life). Cover extends to brothers, sisters, brothers-in-law, sisters-in-law, nephews, nieces, grandparents, grandchildren, adopted children and traditional wives. The insured’s family are covered up to the date on which the insured attains the age of 65; or would have attained the age of 65, should the insured have died before then; or the date on which the policy matures, which ever occurs first.

After the “initial period” as stipulated in the table below, provided that the policy is in force, it may be terminated for its cash value (surrendered).

However, it is never advisable to surrender a policy, especially in its early years, as this will cause you to lose money. If the policy is surrendered after only 3 years premiums have been paid, then it is unlikely that the cash value will exceed the premiums paid.

Each recurring premium plan under MOMPATI must be arranged for a minimum term of 10 years. Where life cover is included, the minimum sum assured, i.e. the minimum sum guaranteed to be paid in the event of eligible death is P10 000.

The premium (the regular monthly payment) you pay is determined by you, subject to minimum premium requirements and minimum premium levels if life cover is taken. Ancillary benefits, for example, disability benefit, accidental death benefit, family funeral benefit, etc. may be added, or removed on any anniversary during the term of the policy.

An anti-inflation annual premium update facility may be incorporated in the plan and if elected, the basic death benefit may also be automatically increased. Subject to certain constraints, the premium, the sum assured, update options or ancillary benefit levels may be changed at any time.

Permanent disability or death of the breadwinner, difficulty in following an informal saving plan, lack of investment expertise and limited options in investment portfolios. Your financial advisor or broker will assist you in the important task of assessing your immediate and long-term needs, so that the policy you take is tailored to your specific needs.

With the UNIVERSAL LIFE PROGRAMME (Mompati) long term insurance needs can be tailored to individual requirements. These may include general needs like capital build-up for children’s education, starting a business or more formal requirements such as the provision of a retirement fund, providing alternative income or lump sum in the case of a breadwinner’s premature death, serious illness or disability. Needs may also include more specialized areas like business assurance. The list is as wide as individual needs.

MOMPATI is an effective assurance and investment programme that ensures the attainment of your individual and family financial goals.

This refers to protection against future loss in exchange of periodic payments.

Both are death claims,but the death of a policy holder or owner who is also the insured , will result in a death claim and the closure of that policy. Whereas , covered persons will receive funeral benefits.