Asian Life brought the facility of terminal bonus for the first time in Nepal

Kathmandu, Asian Life Insurance has introduced a life insurance plan with terminal insurance facility for the first time in Nepal. The 'Asian Term Plus' life insurance plan has been launched with Terminal Benefit and Simple Reversionary Benefit facilities.

In this insurance plan, after the ten-year term is completed, the company will also provide additional (terminal) benefits to the insured in addition to the normal benefits. Compared to insurance plans that do not have facilities related to terminal insurance, the insurance rates of such insurance plans are higher.

According to the company, under the life insurance policy, there is a facility to insure for a period of 5 to 30 years. A life insurance of at least 25 thousand rupees will be required. The company will determine the maximum insurance based on the financial condition of the insured.

In the Asian Term Plus insurance plan, the insured will receive the sum assured and the residual amount in one lump sum after the completion of the insurance period. In case of death of the insured before the completion of the insurance period, the company will give the sum assured and the balance amount as per the rules.

In addition, the insured has been given the facility to add accidental death benefit, total disability, insurance fee facility as well as protection against fatal disease to this insurance. Since it is a term life insurance plan, after the completion of three years from the date of issuance of the insurance policy, it is possible to use the loan facility by keeping the insurance policy as collateral.

The insured who continues the policy for a minimum period of ten years will get additional benefits on the basis of terminal benefit including simple reversionary benefit for the loan secured by the policy and surrender value. With the expectation that the provision of terminal insurance will help to discourage the tendency to surrender or spend the policy in a short period of time, the Nepal Insurance Authority has also implemented the provisions related to terminal insurance in the insurance policy (Bainash Philosophy).

Although the provision of terminal maintenance has been in practice in the neighboring country India for a long time, it has come into practice for the first time in Nepal.