Mortgage Protection Insurance/Credit Life | 31 October 2020
What is Mortgage Protection and Credit Life?
Mortgage Protection is taken for a house loan of any amount and Credit Protection is for a personal loan of up to R150,000. Both are life insurance policies that help your family avoid foreclosure by paying off your loan if you or a joint policyholder dies or becomes totally or permanently disabled during the term of the loan. Both policies apply to single and joint loans and they remain in force for the same duration as your loan.
Who needs Mortgage Protection Insurance and Credit Life?
Anyone below the age of 63, who has borrowed money from a bank for building a house or for other purposes. The policy will ensure that the banks won’t seize your asset and your dependents will continue to enjoy them if you die or become permanently disabled during the term of the loan.
Why do I need to pay a premium?
Policyholders have to pay a single non-refundable premium to secure the mortgage protection or Credit Life protection. The cost of the premium varies, depending on the loan amount, the rate of interest and the individual’s age and health. Once you have paid off the premium, you can rest assured that your investment is secure because you have transferred the risk to an insurance company.
What are the requirements?
- Original copy of the loan approval letter from a bank
- Minimum age of entry: 18 years
- Maximum age at entry: 60 years
- Medical Examination: Compulsory for mortgage insurance and is not required for Credit Life but for the latter, the individual has to declare any medical condition.
How do I make a claim?
Claims are made only in the event of death or an illness which leads to a permanent disability. H. Savy Insurance will guide you through the process.
Contact H. Savy Insurance on 4280400 for an advice.
Contributed by H. Savy Insurance