The Loan Protection Insurance Cover is used to redeem outstanding loan balances on the death of a Loanee. They are issued to the Loanee but the death benefits are payable directly to the lender. The amount payable from the policy is determined on the assumption that all loan repayment installments have been made up to the time of death. The following are examples of loans that can be covered:-
- Staff House Loans
- Co-operative Loans
- Staff Development Loans
- Staff Car Loans
- Term Loans by Banks & Financial Institutions
- Mortgage Loans by Building Societies or other Financial Institutions
Advantages:
- The Creditor is protected from financial loss due to death of the Loanee.
- The Insured’s death benefits are protected as covered loans will not be recovered from them.
- Protects the insured’s dependants in the event of death before full repayment of the loan, from the finance company proceeding against them, possibly evicting them from the house under mortgage..
- The premium are affordable.
Requirements
- Complete our proposal form
- Be medically examined by a doctor from our panel of doctors
- Complete our financial questionnaire where applicable
- Premium payment
Policy Operation
To give a quotation, we require the following details.
- Age (or date of birth)
- Loan amount
- Rate of interest charged on loan
- Loan Repayment period
This will enable us determine the annual premium payable.
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