Basic Life Insurance

DEATH BENEFIT. Upon death of a Member, his beneficiaries shall be entitled to the Basic Death Benefit of P 10,000.00 plus his Equity Value.

ACCIDENTAL DEATH BENEFIT. If a Member who has not attained the age of 65 has sustained accidental bodily injuries effected directly and independently of all other causes and as a result of such injuries, died within one hundred eighty (180) days from the date of accident, an Accidental Death Benefit of P 10,000 shall be paid to his beneficiaries in addition to the Basic Death Benefit, subject to the limitations below.

No accidental death benefit payment shall be made for death resulting from or caused directly or wholly, by: 

• Self-destruction or self-inflicted injury, or any attempt to commit them while sane or insane;
• Bodily or mental infirmity, hernia, ptomaine or bacterial infection (except pyogenic infection which occurs with or through an accidental cut or wound) or disease or sickness of any kind;
• Any injury received:
  
  
  • while on police duty in any national or local police or armed forces organization or civilian defense forces;
  • while participating in any brawl, or caused by war, whether declared or undeclared, strike, riot, civil war, revolution, insurrection, rebellion, or any war-like operation, or any violation or attempt of violation of the law or resistance to arrest; murder or provoked assault;
  • while traveling in any form of underwater transportation, or engaging in any underwater operation or activity;
• an accident occurring while or because the Member is affected by alcohol;
• any occupational hazard, as in the case of miners, loggers, public utility vehicle drivers, crew members of vessels or aircraft, detectives, professional athletes, jockeys, casino workers, firefighters, fishermen, seamen, overseas contract workers, high-rise construction workers, and policemen or any occupation of similar hazard;
• sports or avocation hazard, as in the case of any motor competition, sky or scuba diving, mountaineering or rock climbing, power-boating or yachting beyond five (5) kilometers of coast line, hunting, parachuting, bungee-jumping, and other forms of extreme sports;
• Medical, surgical or dental treatment of any kind, or the administration, injection or taking, accidentally or otherwise, of any drug, sedative or other medication except when such treatment or medication is required as a result of an accident;
• Atomic energy explosion, nuclear fission, or radiation of any nature whatsoever; or
• Pregnancy, abortion, miscarriage, childbirth and/or any of its/their complications.

EQUITY VALUE. Fifty percent (50%) of the basic contribution of the Member shall form part of his Equity Value. The Equity Value shall earn interest as declared by the Association but in no case lower than the average deposit interest rate that the top three (3) banks in the country offer for their savings deposit. The Equity Value shall also share in the divisible surplus, if any, of the Association.

The Member may withdraw his Equity Value upon surrender of his certificate.

CONTRIBUTION LOAN.  Any contribution due remaining unpaid at the end of the Grace Period is automatically paid as a loan against the Equity Value. The loan together with interest is payable on or before his next contribution due date, but if it is not paid, both loan and interest automatically becomes a new loan on such contribution due date on which interest will be charged at the rate in effect from that date.

When the Equity Value less any indebtedness becomes less than the contribution due, the Certificate of Membership shall continue only for the proportion of a year which the Equity Value less the indebtedness bears to fifty percent of the annual contribution. The Member shall be informed in writing of the remaining term of coverage.

All loans and their interest are deducted automatically from any amount payable under the Certificate of Membership.  The Certificate of Membership automatically terminates if the total debt of a Member exceeds his Equity Value.

SUICIDE. The death benefit shall not be compensable if the Member commits suicide within one (1) year from the effective date of his Certificate of Membership or of its last reinstatement; provided however that suicide committed in the state of insanity is compensable regardless of the date of commission.

Where the suicide is not compensable, the liability of the Association is limited to the refund of the contributions that is actually received without interest less all indebtedness under the account of the Member.