Anonymous

04 Jan 2020

∙

What happens to my life insurance policy if the insurance company goes bust?

Under the SDIC PPF scheme, what constitutes as the “guaranteed benefits” that will be protected? Does it refer to the guaranteed surrender value, sum assured, or multiplied sum assured (if under multiplier effect)? If I have not surrendered or made any claims on my policy, how is my policy transferred to another insurer? Will the par-fund bonuses to date remain intact?

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Hariz Arthur Maloy

04 Jan 2020

Independent Financial Advisor at Promiseland Independent

If yor policy has a protection sum assured, it is protected up to 500k. For cash value it would be 100k, this would be current surrender value or accumulated Guaranteed + Reversionary Bonuses.

If your policy is transferred to another insurer, you will most likely be put in their par fund, or they might operate a sub par fund for these new policies. And yes, all declared bonuses are guaranteed and as mentioned, up to 100k.

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