In the early stage, SIMTAL offers a comprehensive suite of life insurance products and services including:
Term Life insurance pays a pre-determined lump sum to the beneficiaries of an insured if that person dies during the term of the policy, helping those closest to the policyholder through a difficult period and securing their income.
The price for the policy is determined by the age of the insured person at the time of application, as well as whether they smoke, their overall health status and profession. As the future premium is already known upfront in level premium products it is easier for the customer to plan his economy without unpleasant surprises or getting into the situation where he can no longer afford the premium.
Bought until the insured person reaches age 65, the policy may be cancelled monthly by the policyholder. The insurance company only has the right to cancel in case of misrepresentation by the insured or default on premium payments.
In order to qualify for Term Life insurance, the insured will have to undergo a digital medical underwriting process that takes only a few minutes.
Purchased with a monthly premium, it is a simple process to take out a Term Life insurance with SIMTAL. During the process, we will help you guide your customer through the process of determining the required death benefit, taking them through a few health questions to calculate the monthly premium payable for the insurance.
Unit Linked Insurance provides a smaller element of life insurance coverage with targeted savings placed into investment funds.
Part of a policyholder’s premium payments are invested in investment funds chosen by the policyholder, but preselected by SIMTAL and its insurance partners based on independent ratings, cost structure and ESG criteria.
When the policy matures (typically when the policyholder retires), the amount in the policy reserve (=the amount in the investment funds) will be paid out as a lump sum to the policyholder.
As the investment is for the long-term, the policyholder can leverage the power of compounding and get higher returns and tax deferment
Our platform helps you to guide the customer through the process of determining their risk appetite, allowing them to make qualified choices of investment funds. The customer has the option to change the allocation of the investment funds during the period so they can adapt their risk appetite to their situation at any given time.
The platform also assists you to guide the customer through a short medical underwriting process. By answering a short health declaration, we will be able to determine the monthly premium that the customer will have to pay for their insurance and the investment.
When you sell a normal (so called gross) life insurance policy you receive a commission based on the expected future premiums paid by the customer. In the case of a traditional gross policy, this acquisition commission plus interest for the prefinancing as well as further expenses and margins are charged in the premium.
Consequently, during the first 5 years of the policy duration, the savings part of the premium of a unit linked policy is often below 60% of the full insurance premium. As a result, the surrender value of such a policy remains below the sum of premiums already paid for many years.
In case of a net policy, the surrender value is normally much higher percentagewise.
With a Net Policy a transparent agreement is made between you and your customer. In this contract your customers agrees to pay a certain amount for the consultation and further services.
As your partner, SIMTAL is collecting these amounts on a monthly basis. Out of these, SIMTAL will prefinance your acquisition commission.
Regarding clawback, similar rules as with gross policies apply.