FREQUENTLY ASKED QUESTIONS (FAQs)
(Q) What is life insurance?
(A) Life insurance is a contract, often called a “policy”, between you and an insurance company to provide money to a person you designate, in the event of death (God forbid) during the time the contract is in force. In essence, during your lifetime you pay money, known as insurance premium, to the insurance company. It promises to pay money to the persons you name, the “beneficiaries”, in case of death (God forbid). Some types of life insurance also give the policy owner the right to “borrow” a portion of the “cash value” within a policy or to receive an “accelerated death benefit” if the policyholder becomes terminally ill or requires confinement in a long term care facility.
(Q) What is the connection between risk and life insurance?
(A) Life insurance, like other types of insurance, is based on the concept of sharing risk. For example, everyone understands that people who are 95 years old are far more likely to die in the coming year than those who are 35.
In the 17th century, Edmund Halley, the English astronomer for whom Halley’s Comet is named, created the first scientific table to reflect how long people would be expected to live – a mortality table. Insurance companies use mortality tables to help them calculate the risk that members of various age groups will die. This permits life insurance companies to accurately calculate how much they should charge people who want to purchase life insurance coverage.
(Q) What can East West Life Assurance offer me?
East West Life is a major player in Pakistan’s life and health insurance industry and offers a complete range of insurance products, such as life insurance, health insurance, accidental insurance with medical reimbursement, monthly income benefit plan for twenty years (in case of permanent disability) and many more products/services that can be customized to fit the needs of any person in any walk of life.
(Q) Is life insurance acceptable in Islam?
Life Insurance is very much acceptable in Islam. As per Fatwas from several Ulemas, insurance is a widely accepted product in Saudi Arabia, Egypt, Malaysia, Indonesia and many other Islamic countries. Moreover, East West Life offers many products that focus on only risk coverage aspect of life insurance, which does not even enter into the debate regarding Islamic acceptability of this product.
(Q) What benefits are available in East West Life’s Insurance Plans?
East West Life offers many products that include a wide range of benefits, such as:
- Insurance protection (in case of premature death)
- Accidental coverage (in case (God forbid) one dies by accidental causes or one meets with an accident and becomes permanently disable)
- In case of accidental death and disability, we offer monthly income benefit plans, which covers the deceased’s suspended income for a minimum of twenty years
- A comprehensive Child Education Plan (Scholar’s Plan) is available, which offers funds for the child’s higher education through maturity, as well as, death of the payer (God forbid) before maturity
- A pure Investment Plan (Mehfooz Sarmaya Plan), which benefits right from the 2nd year of investment
- A single premium investment plan (Sarmaya Gold), which offers highest cash-value growth potential together with life insurance
(Q) Are individual and corporate services available by East West Life all over Pakistan?
Yes, by the grace of God, with nearly 50 offices throughout the country, our services are available in all major cities and remote areas of Pakistan. Moreover, the company is planning to further expand its operations globally soon.
(Q) How does East West Life differ from other life insurance service providers in Pakistan?
East West Life’s commitment to provide the best and prompt services to our individual and corporate customers is the prime distinction of our organization when compared with other insurance service providers in Pakistan. Moreover, another important difference between East West Life and any other insurance company in Pakistan is the special management skills of our organization at the GM level looking after their respective services/areas of interest very professionally with decades of experience to groom their skills.
(Q) What is the difference between individual and group insurance?
An employer/organization provides group life and/or health insurance to their employees in order to fulfill the requirements of labour laws and for the sake of providing benefits commensurate with other entities in their industry. Group insurance policies only provide benefits in case of premature death, accident and/or hospitalization of their employees. These policies have no maturity values. The concerned worker only has benefits while they are associated with the organization. On the other hand, individual life plans have the benefits of a group policy as stated above and unique benefits of substantial maturity value, pre-mature loan and partial withdrawals/cash values.
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