Life Insurance

Life Insurance is a plan for spreading the risk of economic loss airing the death of an individual among a group of persons (who make periodic contributions called premiums) so that each one's share of the loss is slight. It is insurance upon the lives of human beings. Life insurance is written in a variety of forms and plans to fit individual needs and circumstances.

Term Policy

Term provides a Temporary protection for a specified number of years with the face value being payable whenever death occurs. However, it is important to note that the insured is not irrevocably committed to pay premiums throughout his lifetime. Ordinary Life is the most flexible of all policies, and because of this flexibility, it can be changed or adjusted in later years to suit the insured's needs or financial circumstances, or it can be surrendered at retirement age to either provide or augment a retirement income.

Endowment Policy

An Endowment policy provides permanent protection for a specified number of years with the face values being payable at maturity or prior death. Endowment periods are usually 10, 15, 20, 25 and 30 years or retirement plans to mature at ages 55, 60 or 65.


An Annuity is the disposal of an estate already created on the annual, semi-annual, quarterly or monthly basis. It is designed to provide an income for life.

Limited Pay Life Policy

A Limited Pay Life Policy provides permanent protection throughout the lifetime of the insured, but the premium paying period is limited to the number of years specified, such as 10 Pay Life, 15 Pay Life, 20 Pay Life, 25 Pay Life, 30 Pay Life and Life Paid -up at age 65.

Accidental Death Benefit

This is a benefit that provides for the payment of the sum insured if death results from an accident.

Disability Wavier of Premium

Disability Waiver of Premium provides that if the insured should become totally and permanently disabled through natural causes for a period exceeding six months, he will be refunded the premiums which he paid during the first six months of this illness, and future premiums will be waived until he regains health and resumes his duties or to the maturity of the policy, whichever is sooner.

Clean - Up Fund

Clean - Up Fund refers to the amount of money which is needed to free the estate by cleaning up all outstanding debts, such as funeral and last expenses, unpaid current bills, administration costs, taxes, death duties, executors costs or the cost of letters of administration.

Education Fund

The desire to provide a college education for their children is usually strongly implanted in the bosom of most parents. Funds should be provided to enable the child or children in a family to have all the advantages associated with a good education.

Retirement Income

Retirement Income is what a person owes to him or herself. When a person outlives his earning period, he has lived too long economically. Ensure the dignity and peace of mind, which is necessary to happy retirement. All that will be there when you get there is what you send on ahead while your earning power gives you the ability

Non- Forfeiture Values

Non-Forfeiture Values are benefits required by law to be made available to the insured in the event that he or she discontinues premium payment. A table of values which indicate that amounts, values and periods of time for each of these benefits for each policy year must be printed in the policy.

Cash Savings Value

Cash savings Value is the annual cash growth of the policy which is so designed that at the expiration of the endowment period, the savings value and the risk will equal, and so, the policy would endow or mature.

Reduced Paid Up

Reduced Paid Up is an option which the policy owner could exercise, if for some unforeseen reason he cannot continue to pay premiums, but he wants to remain insured for the some period. The amount would be reduced o that the policy would be fully paid-up. It would be non-participating, but the period of coverage would be the same as was originally contracted for.

Extended Term

If for some reason or unforeseen circumstances, the policyowner or insured cannot continue to pay premiums but he wants to remain insured for the same amount, this could be achieved by exercising the extended term option, which will provided full coverage for a limited number of years and days.

Grace Period

The Grace Period is a period of 31 days which is given to the insured after the premium becomes due. If death occurs within the period, the insured is covered, but the premium will be deducted from the proceeds.

Automatic Premium Loan

Automatic Premium Loan provides that when a policy shall have acquired non-forfeiture values, if the remains unpaid at the expiration of the grace period, the premium is automatically paid from the Cash Value, and charged against the policy as a loan.

Suicide Clause

This provide that if the insured commits suicide while sane or insane within two years from the date of issue of the policy or from any reinstatement of the policy, the insurance under the contract shall be sum equal to the premiums paid and no more. However, if suicide is committed after two years, a sum equal to the face value will be payable.


The beneficiary is the person/persons or organization named in policy to receive the proceeds in the event of death.

Primary and Contingent Beneficiaries

A primary beneficiary is the person or group of persons named in policy that has first claim to the proceeds at the death of the insured.

A contingent (secondary) beneficiary is the person or group of persons named in the policy who will receive the proceeds if the primary beneficiary is not living at the time the insured dies.

British American Insurance Company (Trinidad)