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Frequently Asked Questions
Can I use salary sacrifice to pay my insurance premiums for a Wantok Delite cover?
No, based on current Income Tax Act 1959, Life Insurance Premiums cannot be allowed for salary Sacrifice.
The Income Tax Act does not have any provisions for salary sacrifice, however according to a few sections of the Act, there are employee benefits that are taxed at a lesser rate which in practice are treated as salary sacrifice. The usual items that are allowed are:
- Leave Fares
- Motor Vehicle
Can I use my Wantok Delite policy as collateral for a bank loan?
Yes, only after your policy has a surrender value, that is, after 3 years of your policy being in force. The surrender value is the collateral value.
What happens to my policy if I leave employment?
Should you find employment elsewhere, you can maintain your policy by paying the required premiums to keep the policy in force. Similarly, if you have not secured any formal employment but have savings elsewhere, you may use this to maintain your premium payments until such time you find employment. If for whatever reason you are unable to maintain the premium payment, you may choose to surrender your policy and receive the Cash Value. It is important to note that Policies only attract a surrender value after 3 years of the policy being in force, but the surrender value will be less than what you would receive if you were to keep your policy till maturity. There is NO benefit paid out if you terminate the policy before the 3rd year, and all premiums paid will be forfeited.
Do I need a separate life insurance policy apart from the Group Term Life cover?
Yes. The Group Term Life cover is owned by an employer and not the employee. However, the Wantok Delite is an individual life cover available to ordinary Papua New Guineans, residents and contracted foreign nationals who have valid PNG Work Visa of 3 years or more.
Also, the Group Term Life does not have a savings component attached to it nor accumulate a value should you exit prior to the maturity date.
How do I sign up for Wantok Delite?
One can take up the Wantok Delite cover through any BSP Life Insurance Agent who will determine your needs and explain the product benefits, and features prior to you completing an Application Form. The Application will be underwritten and you may be required to do certain medical tests. It is important to disclose everything correctly otherwise claims will not be paid out if found the condition existed at application time and was not disclosed.
How many beneficiaries can I nominate under my Wantok Delite cover?
You can nominate only one beneficiary. However, if you decide to nominate several beneficiaries, you can draw up a Will specifying the beneficiaries and the proportions due to each one.
Are there any medical requirements needed to take out a Wantok Delite cover?
The medical requirements are determined during the underwriting stage of the application. Certain situations where medicals can be required include the following:
- Individuals who declare pre-existing medical conditions
- Individuals who have previous medical history of being diagnosed with certain diseases
- Individuals who have undergone surgery or had been admitted to hospital for a period of time,
- Individuals with ages close to the maximum age limit
Can I change my premium rates during the term of the policy?
Once an individual fills out and signs an Application Form for an agreed Sum Insured, the premium is fixed for the term of the policy.
In certain instances where an individual leaves employment and is unable to meet the required premium payment due to the inability to secure new employment, he/she can opt for a ‘Paid Up Policy’. That is the previous Sum Insured will be reduced together with the premium rate. The difference between the old and new premium rate can be used to offset the remaining terms premium.
What is the turn-around time for processing of claims under Wantok Delite?
Depending on the nature of the claim, provision of required documents and the period since the policy was taken; we will endeavor to pay out claims within 5 to 10 working days. Provided that all requirements are provided, the quickest turn-around time can be 5 days.
I am past the maximum entry age for a Wantok Delite covering so can I take out the policy for someone else?
Yes you can. If you have a son or daughter who is 18 years or more, you can take up the policy for your child as the Life Insured while you will be the Policy Owner. For such an arrangement, you have an option to get your children to pay the premium if and when they get employed, where you can transfer policy ownership to them.
Is there any specific exclusion for Wantok Delite?
Yes, there are specific exclusions under the policy which are included in the policy document. For ease the exclusions from the policy document are stated below:
BSP Life will not pay a claim if the claim arises out of or as a consequence of or contributed to or caused by:
- a) Involvement in any criminal activity other than as a proven victim or bystander.
- b) Nuclear, Chemical, Biological Terrorism where the use of any nuclear weapon or device or the emission, discharge, dispersal, release or escape of any solid, liquid or gaseous Chemical agent and/or Biological agent by any person or group(s) of persons, whether acting alone or on behalf of or in connection with any organization(s) or government(s), committed for political, religious or ideological purposes or reasons including the intention to influence any government and/or to put the public, or any section of the public, in fear.
- c) Terrorism, or threatened violent act or act harmful to human life directed towards or having the effect of:
- Influencing or protesting against any government or,
- Intimidating, coercing or putting in fear a civilian population or section thereof.
- d) War (unless on war service), invasion, acts of foreign enemies, hostilities (whether war be declared or not), tribal or clan war, disputes of whatever nature, civil war, rebellion, revolution insurrection, military or usurped power.
- e) Suicide or attempted suicide or, the willful self-inflicted injury or deliberate exposure to exceptional danger except in the attempt to save human life as in the case of an employed Security Guard during the normal course of their occupation.
- f) Pandemic and/or Epidemic as declared by the World Health Organization or other recognized health organization.
- g) Sexually transmitted diseases, Human Immuno-Deficiency Virus (HIV) and Acquired Immune Deficiency Syndrome (AIDS) and AIDS-related complex (ARC).
- h) Partaking of any Drug unless taken in accordance with the directions and prescription of a registered qualified medical practitioner;
- i) Alcoholism or excessive consumption of alcohol. Alcoholism is defined as a dependency on alcohol. Excessive consumption of Alcohol is defined as being in a temporary state in which one’s physical and mental faculties are impaired by an excess of alcoholic drink.
- j) Neuroses, psychoneuroses, psychopaths or psychoses, anxiety, stress, fatigue or mental or emotional diseases or disorders of any type and as classified in the Diagnostic and Statistical Manual of Mental disorders, Fifth Edition issued by the American Psychiatric Association or its nearest equivalent.
- k) The connivance with or collusion of any beneficiaries of the benefits payable in respect of the life insured.
- l) Any Endorsements which apply to the Policy.
Can I be allowed to pay upfront a full term’s policy premiums?
Yes, you can. The full terms premium will be based on the annual premium multiplied by the policy term. It is advantageous to pay the full annual premium rather than fortnightly premium as the annual premium has an inbuilt discount due to lesser admin work.
Under the AML/CTF Act, you will need to provide full details of the source of funds.
Would the Wantok Delite cover extend beyond PNG?
Yes, Wantok Delite provides worldwide cover provided your premium payments are up to date and the policy is in force. Any claims will be subject to meeting the policy terms and conditions.
Does Wantok Delite offer family cover too?
No, Wantok Delite is an Individual Cover but spouse can be added to the same policy where he/she can be covered under the Death and/or Accidental Death or Accidental Total and Permanent Disability rider benefits.
Is Wantok Delite restricted to BSP Account holders only?
No. Wantok Delite is available to all Papua New Guineans, residents and foreign nationals with valid PNG Work Visa of 3 years or more regardless of which financial institution you bank with.
Are the Survival and Maturity benefits taxable?
The Survival and Maturity benefits under Wantok Delite are not taxed under the current Income Tax Act 1959.
Will I receive any refunds from the premiums I pay if I decide to terminate my policy before maturity?
Once a policy is issued, there is a 28 days cooling-off period as required under the Life Insurance Act 2000. During this period if the policy is cancelled then all premiums paid, excluding any taxes is refunded to the customer.
Once the policy exceeds the 28 day period and you decide to terminate your policy before three years, you will not receive any refunds. If your policy has been in force for three years with all premiums paid, than you will receive a Cash Value (surrender value) when you surrender the policy. However, the surrender value will be less than the amount you would receive at maturity.
Further, if you are in a very unlikely event of something happening to you before maturity even if it is only one month after your policy has been issued, your beneficiary will receive the full sum insured.
If I survive the term of the policy, does the maturity benefit paid to me by BSP Life include Riders too?
No, the rider benefits are not payable at maturity but only when the specific risk one is covered under occurs. Maturity payouts are only on the Base Product. For instance, one receives the Accidental Total and Permanent Disability (ATPD) benefit when he/she is injured in an accident that leaves the individual with a permanent injury that prevents that person from ever securing work again.
What happens to the premiums I have paid for riders if my policy matures?
The premiums paid for the riders are for the specific risk. It is not refunded at any point in time.
Is it possible for an individual to own multiple life insurance policies?
Yes. Under Wantok Delite an individual can purchase several policies depending on the individual‘s affordability and subject to the maximum life cover allowable of K250, 000.00 per life.
Can I allow my Survival Benefit to be rolled over onto my policy cover?
No. Under Wantok Delite Policy terms, BSP Life cannot withhold or roll-over Survival Benefits. However, you may use the Survival Benefit proceeds to pay future premiums in advance.
Is the Wantok Delite available in another country apart from PNG?
No, the Wantok Delite is only available in PNG and nowhere else. However, there is a similar product sold by our Fiji life insurance business.
What are the set premium rates for Wantok Delite?
This is confidential information. The premiums are determined based on a customer’s age, sum insured and added rider benefits on the policy. There can also be loading on the policy if you have certain medical conditions. We can provide you quotations on various scenarios of your preference to consider before you make a decision.
Will BSP Life still effect death benefit payment to the beneficiary of a Primary Insured who dies under suspicious circumstances?
All deaths will have to be confirmed with appropriate medical documents including Death Certificate, identification documents plus a copy of the Policy Documents which are verified before claims can be paid. Should a policy holder’s death be suspicious, proper investigations will be undertaken to verify the circumstances before claims decisions are taken. For accidental deaths, police reports may be required and private investigations may be done to rule out any collusions.
What will be the amount like if I decided to put a stop (surrender) to my policy?
The surrender value is calculated after 3 years of policy being inforce. There is no set Cash Value for Surrender Policies .The Gross surrender is calculated considering factors like:
– How long your policy has been in force and how much you have paid
– How long till your policy matures
– The amount of bonus that has been allocated to your policy
The surrender value paid is after deducting all costs associated with your policy and hence will be lower than premiums paid in the early years and will be closer to the illustrated maturity value at the later years (assuming same levels of bonus declaration in future years).
Do riders generate bonuses and pay Survival benefits like the base cover?
No. Riders do not earn bonuses nor pay Survival benefits like the base cover of Wantok Delite.
What will happen if a policy owner who is not the Primary Insured dies? Is it possible for the primary insured to assume ownership of the policy?
The policy may be terminated if the Primary Insured is unable to maintain premium payments. However, if the Primary Insured is able to afford the required premiums, he or she can assume ownership of the policy.
Can I surrender my policy after sometime due to difficult circumstances?
Yes. If you are unable to meet the premium payments due to circumstances that are beyond your control. However, in order to receive Cash Value, your policy must have been in force for three years and all premium payments are up to date. If your policy is less than 3 years, premiums paid to date will be forfeited. It is therefore encouraged that policies remain in force for the full term to reap the maximum maturity benefit.
The other option is to opt for a ‘Paid Up Policy’. That is the previous Sum Insured will be reduced together with the premium rate. The difference between the old and new premium rate can be used to offset the remaining terms premium.
What does Death Benefit mean?
Death benefits are amounts payable under the policy terms in the unlikely event of a premature death happening to the life insured. The Death benefit includes the Wantok Delite Sum Insured plus declared bonuses and rider benefits, if applicable, that are paid out to the beneficiary of a deceased policy holder. Full death benefit will be paid regardless of whatever survival benefits already paid.
What are the policy exclusions for a claim over natural death?
A natural death is defined as death that results from the aging process or disease. There are no policy exclusions for natural death as long as there is no element of death caused by undeclared pre-existing medical condition. Therefore it is very important that customers have a duty of disclosure where they are required to fully and accurately declare any pre-existing conditions at the time of completing the proposal forms.
Could BSP Life consider adding Medicare to the Wantok Delite?
The Wantok Delite offers life cover only and does not include medical benefits.
Can I insure my parents under Wantok Delite if they are below the maximum entry age of 50?
Yes, however the Policy will be owned by your parents and not you as the payer. Under the Wantok Delite parents can own their policies as they are old enough. We only allow parents to take up or own insurance policies on behalf of their children not vice versa