This plan is designed to reduce considerably, the default risks of financial institutions in the administration of their Consumer/Retail Loans.
How does the policy work?
The Policy has been developed to pay the outstanding loan and or with interest when the borrower (loan beneficiary) dies or suffers total and permanent disability arising out of illness or accident. The outstanding loan does not include unpaid scheduled payments before death or disability.
What does it cover?
There are three principal types of coverage and these are as follows:-
- Death Only
The Policy pays the outstanding balance only when the borrower dies within the repayment term of the Loan.
- Total and Permanent Disability Only
The Policy pays the outstanding balance to the financial institution only when the borrower suffers total and permanent disability, arising out of an accident or illness, within the repayment term of the Loan.
- Death or Total and Permanent Disability
The financial institution receives the outstanding balance when the borrower dies or suffers total and permanent Disability arising out of an accident or illness, within the repayment term of the Loan.
Who can be covered?
Every client/beneficiary of the Consumer/Retail loan portfolio, aged between 18 and 60 years and in good health, is eligible for coverage.
How are benefits paid?
Benefits payable under the policy shall be made to the Financial Institution. Every legitimate claim shall be paid within one week, on receipt of all the appropriate claim documents evidencing that the insured event has occurred.
- Death Certificate;
- Medical evidence of total and permanent disability/ incapacity
The premium payable is dependent on some factors such as: -
- The age of the client;
- The repayment term of the loan; and
- The interest rate chargeable on the loan.
The applicable rate, (to be agreed upon by SIC Life and Institution) based on the age of the loan client and the repayment term of the loan, is applied to the loan amount to determine the premium payable over the loan term.
For further information, contact accredited sales representatives, any SIC LIFE Office near you or the offices listed on this site.