Mortgage Protection Plan
This is a scheme designed to secure Mortgage loan holders against the financial risk of death/permanent disability or critical illness before the repayment of amount owed.
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It serves the purpose of protecting policyholders’ dependents from the financial consequences of the inability to repay the outstanding Mortgage as a result of the death/permanent disability or critical illness of their breadwinner.
- It helps Banks and other financial institutions manage their loan portfolios
- It protects policyholders’ dependents from the financial consequences which may arise as a result death/incapacitation of the borrower and the resultant inability to repay the loan
- It gives peace of mind to both the life assured and the financier
Features of the Plan
- The product is designed to secure Mortgage loan holders against the financial risk of death/critical illness before repayment of amount owed.
- Loan covered by this contract is long term mortgage loans with minimum term of 5 years and Maximum term of 30 years.
- The policy duration will be equal to the term of the loan taken subject to a minimum of 5 years.
- The Sum Assured under the contract is the original loan amount taken from the mortgage institution.
- Only single and annual premium payment is allowed under the contract.
- The policyholder will have the option of adding Loss of Job Benefit.
- The minimum age at entry is 20 years while the maximum entry age is 60 years
- The maximum age at maturity is 65 years.
- The financial institution is the first loss payee.
Benefits
- It helps Banks and other financial institutions manage their loan portfolios.
- It protects policyholders’ dependents from the financial consequences which may arise as a result death/incapacitation of the borrower and the resultant inability to repay the loan.
- It gives peace of mind to both the life assured and the financier.