LIFE PLAN CONTRACT
GENERAL PROVISIONS
I. AGREEMENT
This Life Plan Contractis issued in consideration of your Application and payment of the first LifePlan premium, including handling and other charges, and is conditioned on ourapproval of your application.This Life Plan Contractincluding the Application, together with any annexes, riders or endorsementsduly signed by any of our authorized officers constitutes the entire contract.No statement, promise or inducement made by any person or through any agent,employee or representative not contained herein shall be binding or valid.This Life Plan Contractmay not be amended, endorsed or otherwise changed except through a writtendocument signed by the President or other officers duly authorized by the Boardof Directors of the Company at the time of the amendment. Further, any suchmodification must be made in writing and submitted to the Insurance Commissionfor prior approval.
II. DEFINITION OF TERMS
In this Life PlanContract the words “you” or “your” refer to the Planholder named in the LifePlan Application Form. The words “we”, “us” and “our” or the “Company” refer toNew Life Memorial Plan, Inc.“APPLICATION” refers tothe Life Plan Application Form filed by the Planholder upon application forthis Life Plan Contract.“BENEFICIARY” means theperson indicated as such in the Application and is the designated recipient ofthe pre- need benefits and/or insurance proceeds whenever applicable.“GROSS CONTRACT PRICE”,refers to the stipulated price paid by the Planholder for the purchase of thisPlan Contract including handling and other charges.“GRACE PERIOD”, refersto the sixty (60)-day period counted from the due date of the first unpaidpremium within which the Planholder may settle his account. During the GracePeriod, this Life Plan Contract is still considered in force.“LAPSED PLAN” refers toa delinquent Life Plan that has remained unpaid beyond the Grace Period. ALapsed Plan has no force and effect.“MEMORIAL SERVICEBENEFIT” refers to the worth of the memorial service to be rendered by anaccredited servicing mortuary of the Company, as stated in the Schedule ofMemorial Service Benefits and Termination Values, in consideration of your fullpayment of the Gross Contract Price, as described under this Life PlanContract.“TERMS OF PAYMENT”refers to the number of years you have to pay for the Gross Contract Price inmonthly, quarterly, semi-annual, annual premium or lump sum.“PLAN ANNIVERSARY”refers to a day recurring on the same date as the Plan’s issue date each year.“PREMIUM” refers to themonthly, quarterly, semi-annual, annual amounts paid by the Planholder.“TERMINATION VALUE” refersto the amount payable upon the termination of this Plan Contract as indicatedin the Schedule of Memorial Service Benefits and Termination Values attached tothis Plan Contract.“PLANHOLDER” means theperson named in the Application who purchases pre-need plans for whom or forwhose beneficiaries’ benefits are to be delivered, as stipulated and guaranteedby the pre-need company. The term includes the assignee, transferee and anysuccessor-in-interest of the Planholder.“REINSTATEMENT PERIOD”refers to the two (2)-year period after the end of the Grace Period where aPlanholder may re-activate his/her Lapsed Life Plan. III. ELIGIBILITYIf your age wasmisstated in the Application and your true age at that time was beyond themaximum entry age, you or your beneficiary shall not be entitled to any of thebenefits of this Life Plan Contract. All your payments shall be refundedaccordingly without interest, provided, that you or your beneficiary surrenderyour Life Plan Contract and all supporting documents associated with the same.After all the payments made are paid to you or your beneficiary, we shall bedischarged from any liability or obligation under this Life Plan Contract. IV. PLAN BENEFITS1. MEMORIALSERVICE BENEFITIn consideration of yourfull payment of the Gross Contract Price, we guarantee, upon death of thePlanholder, subject to the terms and conditions of this Life Plan Contract, toarrange and provide for the funeral services, casket and such other furnishingsfor the final rites and burial services equal to the Memorial Service Benefitas stated in the attached Schedule of Memorial Service Benefits and TerminationValues. The administration of such services shall be performed exclusively bythe accredited Mortuary of the company.2. PROFESSIONALADMINISTRATION OF MEMORIAL SERVICEIn case of Planholder’sdeath, we shall render professional administration of the memorial servicepackage through the Mortuary.PHASE I – FIRST CALL –We will act as the Planholder’s administrator to see to it that the servicingmortuary personnel shall coordinate with the authorized family representativefor the release of the body from the place of death, assist in processing ofthe death certificates from the place of death or attending physician andtransport the body to the mortuary.PHASE II – PRESERVATION,COSMETICS AND ARRANGEMENT – We will see to it that the servicing mortuaryperforms the following initial services: proper preservation of the body,restoration of disfigured features, when possible, and application of neededcosmetics on the body and placement of the body in the chosen casket. ForCremation packages, we will see to it that the servicing mortuary performs asolemn and dignified cremation service.PHASE III – FINALARRANGEMENTS AND VIEWING – We will see to it that the servicing mortuary takescare of the arrangements and provides facilities for the dignified and solemnviewing of the body in the mortuary, church, temple or home. Final consultationwith the family will be undertaken on the details of the arrangements.PHASE IV – INTERMENT –We will see to it that the funeral cortege leaves on time as scheduled, providean appropriate coach for the deceased, appropriate music upon request, andcoordinate activities to the satisfaction of all ethnic and religious groups.3. TRANSPORTATIONIf the Planholder’sdeath occurs or his body otherwise requires transport within 25 kilometers fromMortuary, we shall provide transport of the body with no additional charge tothe Mortuary premises and facilities. If the aforementioned distance exceeds 25kilometers, we likewise agree to provide assistance in arranging for thecontracted memorial service, provided that any additional expenses fortransportation beyond the stated distance shall be borne by the Planholder’s family.4. EXTRASERVICES AND ITEMS NOT INCLUDEDWe will use allreasonable effort to provide such extra or upgrade services as may be requestedby your family to ensure satisfaction, with the understanding that anyadditional cost for services not included in this Plan Contract or beyond theMemorial Service Benefit shall be borne by the Planholder’s family, heirs,beneficiary/ies, executor/s or administrator/s and for which the Mortuary maydirectly charge such Planholder’s family, heirs, beneficiary/ies, executor/s oradministrator/s.5. REQUESTFOR RENDITION OF MEMORIAL SERVICEWe shall have the soleand exclusive right to make all negotiations and necessary arrangements withMortuary in connection with the contracted memorial service. Any extra orupgrade services shall be directly negotiated between you and the Mortuary.Time being of theessence, it is the responsibility of your family, heirs, beneficiary/ies,executor/s or administrator/s to give immediate notification to us in person orby telephone or other form of communication in order for us to make thenecessary arrangements for the rendition of memorial services.If the Planholder’sfamily will negotiate directly with another mortuary for the rendition ofmemorial services, we will consider the plan unrendered in accordance with theprovision on Unrendered Services. V. GROSS CONTRACT PRICEYou agree to pay theGross Contract Price, plus handling and other charges, if any, under this PlanContract, according to the selected mode of payment on the designated duedates. You may pay at any of our offices or through our authorizedrepresentatives or through auto-debit facility without any need of notice ordemand. We only honor payments acknowledged by our official receipts. In casedeath occurs prior to full payment of the Gross Contract Price, the beneficiarymay opt to continue to pay the unpaid balance of the Gross Contract Price orsurrender this Life Plan Contract for its Termination Value. VI. GRACE PERIODYou are given a GracePeriod of sixty (60) days from due date to pay for any premium due. If theapplicable premium is not paid after said period, this Life Plan shall lapse. VII. REINSTATEMENTYou have two (2) yearsfrom the end of the grace period to reinstate this Plan Contract. If you do notreinstate this Life Plan Contract before the end of the two (2) yearreinstatement period despite written notice, this Life Plan Contract shall beautomatically cancelled and all payments made shall be forfeited as liquidateddamages.To reinstate, you haveto submit an application for reinstatement, in a standard Company form providedby us, for our approval.All overdue premiums arepaid with surcharge at a rate prevailing at the time of reinstatement, plusprocessing fee and other charges, if any.Any payment by you afterthe Grace Period shall be reimbursed to you unless you duly reinstate this LifePlan Contract within the Reinstatement Period and in accordance with thisSection. However, despite us notifying you that your payment is after the GracePeriod, should we still receive further payments from you, we shall stillreimburse to you but charge you our prevailing administrative fee to effect thereimbursement.If you are stillqualified for insurance, your insurance coverage will be contestable for aperiod of one (1) year from the date of reinstatement. If you are no longerinsurable, you may continue paying without any insurance coverage. VIII. INSURANCE COVERAGEWe shall enroll youunder a Group Life Insurance Policy issued by a reputable insurance company,provided you are in good health as you represented in your Application and youare not below 18 years old or above 64 years old on the date your coverage forinsurance was approved by the Insurer. Your insurance coverage shall be subjectto the terms and conditions of the said insurance policy.You shall be enrolledunder the following:1. CREDIT LIFE INSURANCEThe Credit LifeInsurance provides coverage on the unpaid balance of the Gross Contract Price.This insurance coverageshall terminate upon death of the Planholder during the Paying Period of thePlan, upon the end of Paying Period of the Plan or upon your attainment of age65, whichever comes first.2. TOTALAND PERMANENT DISABILITY BENEFITIf you become totallyand permanently disabled before attaining age 65, and such disability continuesuninterruptedly for a period of not less than one hundred eighty (180) days,you may apply for a disability claim under this Plan Contract, upon submissionof due proof of Total and Permanent Disability within ninety (90) days afterthe occurrence of such disability. If the disability claim is approved, theproceeds shall be applied to 100% of the balance of the Gross Contract Price.Pending approval of thedisability claim by the Insurer, you shall continue to pay for the premiums asthey fall due.Once your claim isapproved, all premium payments which you may have made from the date ofdisability up to the time of approval shall be refunded to you provided thatyou have not yet attained age 65 on thedate of disability.This insurance coverageshall terminate upon approval of the disability claim during the Paying Periodof the Plan, upon the end of Paying Period of the Plan or upon your attainmentof age 65, whichever comes first.3. ACCIDENTALDEATH BENEFIT INSURANCEIf you suffer, directlyand independently of all other causes, any accidental bodily injury whichresults in any of the specified losses described in the attached benefitschedule within one hundred eighty (180) days after the date of the accidentcausing the loss, the Insurer shall pay the indemnities equal to 100% of theGross Contract Price.This insurance coverageshall terminate after 20 years from the Effective Date or upon your attainmentof age 65, whichever comes first.4. YEARLYRENEWABLE TERM INSURANCEYou are also enrolledfor Term Insurance Coverage under such terms and conditions of the Insurer. Theinsurance benefit shall be equal to 100% of the Gross Contract Price.This insurance coverageshall terminate after 20 years from the Effective Date or upon your attainmentof age 65, whichever comes first.IX. INCONTESTABILITYThe contestabilityperiod for any of the above insurance benefits shall be one (1) year from theEffective Date of this Life Plan Contract or from date of last reinstatement.X. BENEFICIARYYou have the right tochange the beneficiary/ies designated in the Application.If you do not qualifyfor the insurance benefits under the Insurance Coverage and you die within theTerms of Payment, or if this Life Plan Contract is issued with insurance benefitsand you die and the claim for insurance is disapproved by the Insurer, yourBeneficiary will have the following options to choose from:1. request for the transfer of the Plan in his/her name and after approvalof the request for transfer, your Beneficiary may continue paying the balanceof the Gross Contract Price. Your Beneficiary will be entitled to the memorialservice benefit subject to the Transferability section of the Life PlanContract; or2. terminatethis Life Plan and avail of the Termination Value.XI. TERMINATION VALUEWhile this Life PlanContract is in force, you may surrender this Life Plan Contract and you will beentitled to Termination Value, if any, as shown in the Schedule of MemorialService Benefits and Termination Values attached to this Life Plan Contract.After the TerminationValue has been paid to you, we shall be discharged from any liability orobligation in this Life Plan Contract.XII. TRANSFERABILITYYou may request us totransfer your rights and privileges under this Life Plan Contract to anotherperson, subject to the following conditions:1. You must submit your request in writing, in a Company form provided byus, plus a new Application signed by the person to whom it is to betransferred;2. this Life Plan Contract must be in force at the time of transfer;3. you must pay the appropriate charges, if any;4. you must surrender your Life Plan Contract, including all itsattachments, and Certificate of Full Payment if fully paid;5. the transfer will be subject anew to the one (1) year contestabilityperiod;6. all benefits under the Insurance Coverage section will be terminated;7. Memorial Service Benefit will be the same as stated in the attachedSchedule of Memorial Service Benefits and Termination Values; and8. all other terms and conditions of this Life Plan Contract shall apply.We are not bound by anytransfer of this Plan Contract if it is not recorded and approved at our HeadOffice or any of our authorized branch offices. We are not responsible for thevalidity or effect of such transfer. The transfer shall be effective only uponour approval and the issuance of a new Life Plan Contract to the newPlanholder. Until such time as the new Life Plan Contract is issued to the newPlanholder, any application for transfer is not considered approved norconsented by us. XIII. TRUST FUNDWe shall deposit with aTrustee Bank all amounts required by the insurance Commission. The trust fundshall be administered and maintained in accordance with the trust agreement andthe Pre-Need Code. XIV. TERMINATIONThis Life Plan Contractshall automatically end:1. upon Surrender of this Life Plan Contract for its Termination Value; or2. if this Life Plan Contract remains lapsed at the end of the ReinstatementPeriod despite written notice, or3. after we have rendered, through the accredited Mortuary, the professionalassistance and services as provided in this Life Plan Contract; or4. after we have paid the corresponding amount to your Beneficiary due toUnrendered Service; or5. upon transfer of your Plan Contract to another person with our consentand the new Plan Contract issued to the new Planholder. Any premiums received by us aftertermination of this Life Plan Contract, shall be refunded to you and shall notcreate any liability on our part. We reserve the right to charge you foradministrative costs in relation to such refund and remit net amount less ourcharges. XV. FORTUITOUS EVENTSWe shall not be liable for anyinconvenience, loss, damage, or delay that you may sustain due to fire, flood,earthquake, war, or civil disturbance, extra-ordinary economic upheaval,strikes or labor disputes, acts of God, government legislation or regulation,service interruptions by third party service providers (e.g. utilities,telecommunications, Internet) or such other conditions that are beyond ourcontrol in connection with the implementation of our obligation under this LifePlan Contract. XVI. TAXES AND FEESThe Gross Contract Pricestated in this Life Plan Contract does not include any tax or fee which any lawor regulation may impose in the future. If during the effectivity of this LifePlan Contract, the Contract Price or the benefits are subjected to any tax orfee, said tax or fee will be charged to you, or your Beneficiary, as the casemay be.We shall publish ourdifferent charges and fees from time to time. You may also request from us ourdifferent charges and fees during regular business hours. Your continuedpayment of premiums to us under this Life Plan Contract or enforcement hereofconstitutes your binding consent to be charged such fees as may be applicable.In our sole discretion, we shall remit to you whatever funds you are entitledto under this Life Plan Contract net of our applicable charges and fees. XVII.LIMITATION OF ACTIONNo legal action underthis Plan Contract may be filed after five (5) years from the cause of actionaccrues. XVIII. ASSIGNABILITYYou may assign theprivileges and benefits of the memorial services described herein to anydeceased third person, subject to the following conditions:1. ThisLife Plan must be up-to-date in the payment of premium. A lapsed plan cannot beassigned.2. Theassignment shall be in writing duly signed by you, in proper form, anddelivered to the Company or our duly authorized representative forconfirmation.3. Theplace of death must be within the Company’s covered areas.4. Youmust surrender this Life Plan Contract, including all its attachments, andCertificate of Full Payment, if fully paid.5. Anyinsurance coverage provided herein shall automatically terminate and not applicablenor assignable.6. MemorialService Benefit will be the same as stated in the attached Schedule of MemorialService Benefits and Termination Values.7. Theremaining premiums due plus taxes and other charges shall be fully paid.8. Wereserve the right in our absolute discretion whether to consent to suchassignment or not. XIX. WAIVER OF ARTICLE 1250The provision of Article1250 of the Republic Act No. 386, otherwise known as the Civil Code of thePhilippines which states that in case an extraordinary inflation or deflationof the currency stipulated should supervene, the value of the currency at thetime of the establishment of the obligation shall be the basis of payment,unless there is a contract to the contrary, shall be waived in determining theextent of benefits or liabilities under this Life Plan Contract. XX. JURISDICTION AND VENUEThe Insurance Commissionshall have the primary and exclusive power to adjudicate any and all claimsinvolving pre-need plans. If the amount of pre-need benefits does not exceedOne Hundred Thousand Pesos (P100, 000.00), the decision of the InsuranceCommission shall be final and executory.Philippine law shallgovern this Life Plan Contract and all transactions contemplated herein. Asidefrom the Insurance Commission, any action or proceeding arising out of or inconnection with this Life Plan Contract shall be filed only and exclusively inthe proper courts of the Philippines, to the exclusion of other courts. XXI. UNRENDERED SERVICEIf we cannot rendermemorial service at the time of death of the Planholder, due to circumstancesbeyond the control of either your family or the Company, or due to thecircumstances described in the Fortuitous Events Provision, your Beneficiarywill have the following options to choose from:1. requestfor the transfer of the Plan in his/her name, in accordance with theTransferability section, and after approval of the request for transfer, yourBeneficiary may continue paying the balance of the Contract Price; or 2. terminatethis Plan and avail of the Termination Value.In either case, such maybe subject to our administrative charges and fees for Unrendered Service. XXII. YOUR INFORMATIONIt shall be your duty toinform us of any changes in the information you have provided us. Absent ofsuch notification of change, you expressly consent to us using your informationas last provided to us. XXIII. IMPORTANT NOTICEThe InsuranceCommission, with offices in Manila, Cebu and Davao, is the government office incharge of the enforcement of all laws related to pre-need and insurance and hassupervision over pre-need and insurance companies and intermediaries. It isready at all times to assist the general public in matters pertaining topre-need and insurance. For any inquiries or complaints, please contact thePublic Assistance and Mediation Division (PAMD) of the Insurance Commission at1071 United Nations Avenue, Manila with telephone numbers +632-5238461 to 70and email address pubassist@insurance.gov.ph. The official website of theInsurance Commission is www.insurance.gov.ph.
