How life insurance pay-outs work

There is often the misapprehension that you need to die for your insurance company to pay out; that is partly false! Life insurance popularity is on the rise as its importance as a long-term financial plan becomes more evident; but a lot of people still do not understand how and when payouts are delivered!

When are benefits paid?

Typically life insurance benefits are paid when the insured has died, and the beneficiaries file a death claim with the insurance company. They will need to submit a certified copy of the death certificate along with their paperwork.

However, some life insurance policies allow the policyholders to draw against the face value of the policy in the event of a terminal, chronic or critical illness. These policies enable the policyholder to be the beneficiary of their own life insurance policy.

Whatever policy you go for, all of Sacos’ insurance have the following attributes:

  • On survival to the end of the term, the sum assured and accrued bonuses are payable
  • On death during the term, the sum assured plus bonuses accrued up the date of death are payable
  • On Total and Permanent Disablement the sum assured and the bonuses accrued up to disablement are payable

When could the policy not pay out?

A common circumstance in which a life insurance policy will not pay out is in the case of suicide. It is an exclusion clause in your policy. Additional clauses are what are considered dangerous activities, such as skiing or snowboarding.

Also not covered is death through crime or illegal activities, for example if you are burgling a house and the owner stabs you, your insurance will not be paid out.

Sometimes you may be committing an illegal activity but may not realise it! For example: you’re walking on private property. Trespassing is a crime — even if you don’t know you’re trespassing. A tree falls on you and you die. If it turns out that you were trespassing, your claim could be denied.

How to file a claim

Contact us as soon as you are able to after the death of the insured in order to begin the claims process. The beneficiary of the insurance policy must obtain a certified copy of the death certificate.

We’ll be more than happy to provide more information as well as answer any questions that you may have.

Simply pay us a visit at our branches (Maison Esplanade – Victoria, Pension Complex –Baie St. Anne Praslin, Green Corner –Providence)  or call us on 429 5000 or send an email to

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