Loan Protection Insurance products protects you against the risk of being unable to meet your loan repayments as a result of death, trauma, disability or involuntary unemployment, subject to any maximum payouts stipulated in the contract.
Loan Protection Insurance products are not compulsory and in all cases can only be taken as part of a loan package. Business Loan Protection Insurance (or BLPI) can only be taken if at least 50% of the loan will be applied towards business or investment purposes.
Our Loan Protection Insurance products are designed to provide customers with protection and peace of mind knowing that if the unforeseen happens, their repayments will be made in those circumstances which are covered. Tre three (3) types of cover available under these products:
Trauma and death cover
Trauma and Death cover pays the net balance under a customer’s loan agreement in the event of the death of the customer or if the customer is diagnosed with one of the following specified traumas during the period of cover:
- Coronary artery bypass surgery,
- Heart attack, or + Major stroke.
The maximum amount payable under this policy cover is the outstanding balance of a customer’s loan up to a maximum of $100,000.
If it has errors, it may end up costing you even more in the future.
Disability cover pays a customer's loan repayments due under their loan agreement in the event that the customer becomes totally disabled for longer than the elimination period, subject to the policy’s limits. Payments will start from the end of the elimination period and continue for as long as the customer is totally disabled or until the policy ends, whichever happens first.
This cover will meet installments up to a maximum of $3000 per month. The maximum amount payable during the entire period of insurance and for claims by all insured persons combined is $100,000.
Involuntary unemployment cover
Involuntary unemployment cover pays the customer's loan repayments due under their loan agreement in the event that the customer becomes involuntarily unemployed for longer than the elimination period. Payments will continue for as long as the customer remains involuntarily unemployed up to a maximum period of 120 days or until the policy ends, whichever happens first.
This cover will meet installments for 120 days up to a maximum of $4,000 per claim. The maximum amount payable during the entire period of insurance is $10,000, for claims by all insured persons combined.
Choices of cover
A customer may choose any one of the following combinations of cover:
- Trauma and death, disability and involuntary unemployment,
- Disability and involuntary unemployment,
- Trauma and death and disability,
- Disability only, or
- Trauma and death only