2019 is going to be the year! You’re finally going to apply for that loan and big changes are in the offing! Regardless of what you will be using it for, you’ve already made all the arrangements for it. Bank documents, check. Little happy dance, check!
Can you think of anything that you might have forgotten?
CREDIT PROTECTION INSURANCE!!
In case you have never heard of it, CPI is used to pay out a mortgage or loan balance up to the maximum specified in the certificate of insurance or to make debt payments on the customer’s behalf in the event of death, disability or critical illness. This ensures that your family will not be burdened by your debts in case of your untimely disability or demise. Sacos offers two types of credit protection plans: Credit Life and Mortgage Protection.
1) Credit Life:
This was tailor-made to accommodate all banks in Seychelles lending unsecured loans, in case of death and Total and Permanent Disability. As a prerequisite, you have to take this plan prior to loan disbursement. Here’s an example of how it could work:
Let’s say you take out a loan of SCR100,000 for personal use from your bank. Your bank will ask you to insure the value of the loand before disbursing the amount to you. You will then contact us for an insurance to provide coverage on this amount. The premium you will pay is one-off for the insurance is noe-off and it covers the entire duration of the loan. In the event of disability, accidental death, dismemberment, and critical illness, your insurance will pay the remainder of your loan amount due to the bank.
2) Mortgage Protection
Mortgage Protection provides coverage for loans disbursed for the purchase of an asset such as house (including construction of, car or boat. As a security for the loan, most financial institutions will require the borrower to purchase a Mortgage Protection Plan for the amount of loan granted. Sacos’ Mortgage Protection Plan aims to remove financial burden on surviving family members or business partners in the event of untimely Total and Permanent Disability or death of the policy holder.
As an example, if you take out a SCR500,000 mortgage with a 20-year amortisation period to purchase a home, your insurance will provide coverage for the entire SCR500,000 throughout the duration of 20 years. If you happen to pass away during that time period or you became permanently diasbled and had not finished paying off your loan, your insurance will pay the remainder of your debt. The surviving members of your family will be able to remain in their home without financial burden of the loan. The insurance premium you pay is a one-off expense which covers the duration of the loan.
Does this sound right for you? Pay us a visit at our new location in town or call us on 429 5000 or send an email to firstname.lastname@example.org for more information on our Credit Protection Insurance product.