🛡️Life Protection Benefit
Everything you need to know about how the Life Protection Benefit works, who it covers, and how to qualify. So your loved ones stay protected, no surprises.
About Life Protection Benefit
What is the Life Protection Benefit?
The Life Protection Benefit is a payout made to your chosen beneficiaries if you pass away while you're an active, eligible member of The LifeDAO. It works as a Shariah-compliant alternative to life insurance, but instead of paying premiums to a company, you contribute to a community fund. That fund is used to support members and their families in times of need.
To get an idea of the benefit range your family could expect, you can use our Life Benefit Calculator in your dashboard.
How do I qualify for the Life Protection Benefit?
To qualify you must be:
Be between the age of 20 and 60 (verified through KYC)
Have a BMI between 15 and 50
Not have a preexisting medical condition on our list
Not live in an excluded jurisdiction
When does my Life Protection Benefit coverage start?
Coverage begins immediately after activation. Note, that there is a waiting period of 3 months before a payout request can be submitted, which is industry standard.
How do I apply for the Life Protection Benefit?
Complete your KYC (identity verification)
Activate the Life Protection Benefit in your dashboard
Provide any missing personal information
Answer the underwriting questions
Provide beneficiary information
Pay additional fees, if any
Stay up to date on your membership contributions
Your membership contribution and Life Protection Benefit contribution will sync into 1 payment starting next membership year
Which medical preconditions stop me from joining?
At The LifeDAO, we maintain a list of medical preconditions that may prevent some individuals from joining. We’re not taking these decisions lightly, but we need to do this to protect the fairness and long-term sustainability of the fund for everyone.
Allowing people with high-risk conditions could raise the financial risk for the group, making it harder to deliver on our promise of giving your family a fair benefit payout. These guidelines help ensure The LifeDAO remains equitable, reliable, and resilient.
👉 Check the list here to see if a specific condition affects your eligibility.
What if I’m diagnosed with a medical condition after becoming a member?
If you’re diagnosed after the first 3 months of your membership, you’re still covered. You’re eligible for the benefits agreed in your membership contract, as long as the condition genuinely started after those first 3 months.
When it’s time to renew your membership, we’ll review your current health status. If the condition is ongoing by then, you’ll probably still be able to renew, but the benefits may be adjusted; for example, a lower payout. We’re still working on finalizing how this will work in the future.
Bottom line: as long as everything’s clear and honest from the start, we’ve got your back.
What if many members die at once?
In the event of a major crisis - like a war or a pandemic - that causes an unexpected spike in deaths of TLD members, The LifeDAO may face pressure on its Protection Reserves.
It’s highly unlikely that this will happen, but for the sake of mental peace here’s how TLD is structured to respond:
To make sure each eligible family gets something, the benefit payout will be on the lower end of the range for everyone until the fund recovers.
Protection Reserves are funded by member contributions and are specifically set aside to pay out benefits like the Life Protection Benefit.
In case the fund is under strain, product revenues from things like the prepaid crypto card and investment pools may be used to bolster the Protection Reserves, helping to stabilize the system temporarily.
This approach helps The LifeDAO remain resilient even during large-scale, unexpected events—while staying fair and Shariah-compliant.
What if someone tries to scam TLD? How do you protect against fraud claims?
We take fraud seriously because the strength of our system depends on trust.
Here’s how we protect against false claims:
Smart contracts do the heavy lifting: Our protection benefits are governed by transparent smart contracts. These automated systems verify eligibility and ensure payouts only happen when all predefined conditions are met.
Waiting period filter: Every new member goes through a 3-month waiting period before becoming eligible for key benefits. This helps filter out people who try to join with the intent to make a quick fraudulent claim.
Proof-based claims: Members (or their beneficiaries) must provide verifiable documentation (like official death certificates, medical records, or legal notices) for any claim. These are reviewed for authenticity before any payout.
Community governance oversight: Major decisions and policy changes (including fraud prevention rules) are governed by member votes. That means no backdoor decisions, just collective wisdom.
Our goal is to build a system based on mutual trust and fairness. And with the right tech, transparency, and community vigilance, we’re making it really hard for bad actors to get through.
Payouts
When can payouts be made?
A payout can be submitted 3 months after the date you activate your Life Protection Benefit. This is an industry standard to reduce the incidence of fraud. Payouts are processed digitally and can be paid out globally.
Is the payout guaranteed?
As long as it’s a valid claim (so there’s no fraud), yes, your loved ones are guaranteed to get a payout.
The exact amount depends on a number of factors, though. TLD uses a patented underwriting model built to protect the community, not profit shareholders. When you activate your Life Benefit, you get a payout range (minimum and maximum), and our claims system is designed to keep payouts within that range, and only extreme catastrophic situations would lead to a lower amount.
We’ve built strong risk safeguards to keep payouts reliable, fair, and transparent.
How will my beneficiary receive their payout?
Once a payout is requested, your beneficiary will get access to a secure digital dashboard where they can track the status of the request in real time. The payout will be made in USDC to their in-app wallet, with easy options to off-ramp to a bank account or other supported platforms. Everything is designed to be simple, transparent, and hassle-free.
What happens if I unsubscribe or miss a payment?
If you unsubscribe or miss a payment:
Your Life Protection Benefit will be deactivated
You will have to redo the application process
You will need to restart the 3-month activation period if you return
Your Benefit Multiplier will be re-calculated
You may lose some or all of your credits depending on when you exited
Last updated