Non-forfeiture options are the options available to Benefit Certificate Holders with earned cash values.  These are the options given to the Benefit Certificate Holder if the time comes when he can no longer pay or does not intend to pay insurance contributions. The cash value will be diminished by any outstanding benefit certificate loans.

The cash value earned by the benefit certificate can be used to continue the life insurance coverage even if the insurance contribution remains unpaid beyond the grace period.

1. Extended Term Insurance (ETI) – The net cash value is used as a single insurance contribution to continue the existing benefit certificate as term insurance, either for the same or lesser face amount, depending on advances made and coverage will only be for a certain number of years and days.
Some limitations during effectivity of ETI:

• • Availment of Benefit Certificate loan is not allowed
  • The benefit certificate will not earn dividends
  • All supplemental benefits are cancelled
  • Application for Cash Surrender Value is not allowed

2. Reduced Paid-up (RPU) – The net cash value is used as a single insurance contribution to purchase as much paid-up insurance as possible. The paid-up plan will be the same as the original benefit certificate’s but the amount of coverage is smaller than the face amount of the original benefit certificate.
Some limitations during effectivity of RPU:

• • The face amount is reduced
  • Availment of Benefit Certificate Loan is not allowed
  • The benefit certificate will not earn dividends
  • All supplemental benefits are cancelled

3. Net Surrender Value  –  the Benefit Certificate Holder may surrender the Certificate for its Net Surrender Value which is the sum of the Net Cash Value and any remaining dividend accumulation less any outstanding loan. The Net Cash Value is the sum of the cash value of the Certificate (which is illustrated in the Schedule of Non-forfeiture Values – included in the Benefit Certificate).

Cash value is the savings element of your Benefit Certificate. It is the amount set aside from each contribution that you pay, after deducting all investment and administrative expenses required to maintain your Benefit Certificate.  Thus, the longer your benefit certificate is inforce, the more cash values will be generated.  To check the cash values that your certificate can generate, please refer to the “table of non-forfeiture values”. For example, if your certificate has been in force for 5-years, look in the cash value column for the amount equivalent to 5 years and multiply this amount by the number of thousands of your certificate’s sum assured.

Once your Benefit Certificate has generated cash values, you may avail of a Benefit Certificate Loan in an amount not to exceed the total cash values.  The loan on the cash values will be charged interest, which is currently at 10% per annum.  This interest is deducted in advance upon application of the loan.  Any succeeding interest not paid when due on each benefit certificate anniversary date shall be treated as additional loan and shall be charged the same interest rate as the original benefit certificate loan.

Benefit Certificate loans which are outstanding at the time of granting of any of the following benefits shall be deducted from the total proceeds, or cash values and dividends:

1. 1. College savings plan (CSP) benefit
   2. Anticipated Endowment Benefit
   3. Maturity Benefit
   4. Death Benefit
   5. Cash Surrender Value
   6. Reduced Paid-Up Insurance
   7. Extended Term Insurance

Unpaid benefit certificate loan may result to termination of your benefit certificate in case the cash value is no longer enough to renew loan interest. This is in accordance with the benefit certificate provisions. In order to avoid any disruption in the benefits under the insurance coverage, it is best to pay the benefit certificate loan or at least 20% of it on or before the anniversary date of the benefit certificate.

The following documents must be presented to the Home Office – BC Holders Relations Office, or at Service Office, when applying for a loan:

1. The benefit certificate; and,
2. A duly accomplished BC Loan Agreement form. The form is
   provided by the Association and can be obtained from the Home
   Office or any Service Office. The form can also be downloaded from our website.The Request for Loan form must be signed by the following:
1. The Benefit Certificate Holder; or,
2. The Applicant/Owner (if other than the benefit certificate holder); and,
3. The irrevocable primary beneficiary/ries, if any. (If the irrevocable beneficiary is a minor, the form must be signed by the legal guardian.)
4. Two photograph-bearing identification cards (benefit certificate holder and irrevocable beneficiary)
5. If the Benefit Certificate is assigned, a written consent from the assignee is required to allow the processing of the loan.In the event that the Benefit Certificate Holder will not be able to personally appear in requesting and securing a Benefit Certificate loan, his representative should present a letter of authorization from the Benefit Certificate Holder in which the representative’s specimen signature must appear and a valid identification card containing his picture and signature. In case of request for encashment of check, a Special Power of Attorney should be submitted by the benefit certificate holder/applicant/owner specifying the specific authority of the bearer.

Benefit Certificate loan can be paid at any time and at any amount convenient to the Benefit Certificate Holder. The loan plus interest is indicated on the contribution and loan notice.

Unpaid benefit certificate loans, whether incurred from an unpaid insurance contributions or an actual cash loan, will bear an interest computed at a fixed rate per annum. If the interest is not paid, it is compounded so that it becomes part of the principal loan at the next benefit certificate anniversary. Non-payment of benefit certificate loans leads to the exhaustion of the cash value reserves which could in turn cause the benefit certificate to be cancelled.

From the time your benefit certificate was issued up to the present, you may need to update or revise some information, such as change of address, beneficiaries or some other important information.

The following are various changes and the corresponding requirements that have to be submitted should the need arise.  Some of these changes require approval of the Association.  We may require you to submit additional documents or requirements for certain transactions.

Amendment forms are available at our BC Relations Office at Home Office or at any Service Office. The forms can also be downloaded from our website: www.kofc.org.ph.

Several of these benefit certificate changes are:

1.  Change of Name on account of marriage/change in civil status

• Duly accomplished amendment form
• Copy of marriage contract
• Court decision in case of annulment or separation

2.  Change of name on account of legal change of name

• Duly accomplished amendment form
• Court decision stating new name of benefit certificate holder.

3. Change of name on account of misspelled/erroneous name

• Duly accomplished amendment form
• Copy of birth certificate
• Affidavit of two disinterested persons stating that the person referred to are one and the same person

4. Change of address or contact information

• Write your correct address on the lower back page portion of the Contribution and Loan Notice or write to us a letter with your full name, benefit certificate number and correct address and send the form or letter to:

BC Relations Office (BRO)
Knights of Columbus Fraternal Association of the Phils., Inc.
Gen Luna cor Sta Potenciana Sts.
Intramuros, Manila
P.O. Box 510, CPO Manila

OR

• Call our Customer Care Representative  at telephone no. 527-2223            OR
• Send an e-mail to [email protected]

5. Correction of date of birth and age

• Duly accomplished amendment form indicating the correct date of birth.
• Certified true copy of birth certificate.

If the change in birth date would mean a higher insurance age, you have two choices, either you get the same coverage for a higher insurance contribution or pay the same insurance contribution for a lower Face Value.

If the change in birth date would reflect a lower insurance age, your insurance contribution will be adjusted based on the correct age.

Any adjustment in the insurance contribution and/or amount of Face Value will be retroactive to the date of the issuance of the benefit certificate.  Hence, if the change in age would result to a higher insurance contribution, you would have to pay the difference in insurance contributions plus interest.

6. Change in beneficiary and/or beneficiary designation

• Duly accomplished amendment form
• Signatures of all irrevocable beneficiaries, if applicable
• Copy of valid IDs of irrevocable beneficiaries.

7.Change in dividend option

• Duly accomplished amendment form

8. Assignment of benefit certificate

• Duly accomplished and notarized “Deed of Assignment” signed by the benefit certificate hodler and all irrevocable beneficiaries; if applicable.

9. Cancellation of Assignment of benefit certificate.

• Certification from Assignee canceling the assignment or release of assignment letter.

10. Change to higher or lower Face Value

• Duly accomplished amendment form indicating the desired benefit changes signed by the benefit certificate holder and all irrevocable beneficiaries; if applicable.
• Compliance with Underwriting requirements (e.g. full medical examination).
• Pay the balance of insurance contribution due (if any)

11. Additional riders

• Duly accomplished application for rider form
• Compliance with Underwriting requirements

12. Removal/reduction of Extra rating (occupational or medical rating)

• Request for removal/reduction of extra rating
• Medical rating – compliance with Underwriting requirements (e.g. full medical examination, etc.)
• Occupational rating – proof that occupational risk no longer exists

13. Change of Plan

• Duly accomplished amendment form signed by the benefit certificate holder and all irrevocable beneficiaries; if applicable.
• Compliance with Underwriting requirements (e.g. full medical examination, etc.)
• Pay the balance of insurance contribution due (if any).

14. Change in the Mode of Payment

• Duly accomplished amendment form indicating the desired mode of payment.
• Remit additional payment if needed (in case change is from more frequent to less frequent mode).

A holder of an in forced Benefit Certificate who lost his benefit certificate may request for a replacement subject to submission of the following documents :

1. An affidavit of Loss of Benefit Certificate (2 copies) duly signed and acknowledge before a Notary Public; and,
2. The benefit certificate Reissue Fee of P200.00