🛡️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.
Which countries are excluded from the Life Protection Benefit?
Some countries are flagged as high-risk or conflict zones, which may affect your eligibility for a payout. This doesn't always mean you're excluded, but if you pass away while in one of these countries, the benefit may not apply.
👉 View the current list of flagged countries here
Why are some countries excluded for the Life Protection Benefit?
Our job is to protect the community fund so that every member can rely on it when it matters most.
To stay objective and fair, we use independent global risk databases to assess which countries carry a higher risk for reliable benefit payout processing. These include the ACLED (Armed Conflict Location & Event Data Project), the Global Peace Index, and international travel risk advisories.
Countries may appear on these lists due to conflict, political instability, civil unrest, or high crime levels. The situation on the ground is always evolving, and so are our lists. We're also exploring ways to refine our criteria internally, especially where the external data feels too restrictive or doesn’t reflect real lived conditions.
You can still join and remain a member if you live in or travel to a flagged country; but if you pass away while in a conflict zone, the Life Protection Benefit may not be paid out.
We’ll always be transparent about your status and keep reviewing the data so we can include as many members as possible, safely and sustainably.
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?
We take fraud seriously because the strength of our system depends on trust.
Here’s how we protect against false benefit requests:
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 benefit request. 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
Coverage Length
What does “coverage length” mean in the Life Protect plan?
It’s the amount of time you choose to be covered; this could be a few years or all the way up to retirement.
Does my contribution or benefit multiplier change every year?
Nope. Both your contribution and benefit multiplier are locked in for the full length of your chosen coverage. They don’t change annually.
How does choosing a shorter or longer coverage period affect my benefit?
Shorter coverage = higher benefit multiplier (i.e. higher payouts) Longer coverage = lower multiplier (i.e. lower payouts)
Why? Because if you're covered for a longer time, there’s a greater chance a payout could happen. The system balances this to keep things fair and sustainable. ⇒ A short coverage plan is like a single-trip ticket: more value per trip, but it ends quickly.
⇒ A long coverage plan is like a full-year pass: it gives longer protection, but the value is spread out over more time.
Why are coverage and payouts connected this way?
To keep things fair and financially balanced for all members. Everyone contributes in a way that reflects how long they’re protected, helping maintain a healthy community fund.
If someone joins for a short time, there's a smaller window where a payout might be needed, so the plan can afford to offer a higher benefit multiplier. But if someone joins for 20+ years, the plan is taking on a longer risk window, so the payout potential is stretched over a bigger timeframe. To keep things financially fair and stable, the benefit multiplier is adjusted accordingly.
This structure ensures that no one overpays or underpays, and the community fund stays strong enough to support all members when they need it most.
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