Overview
It is the worry of every lender that a borrower may not repay their mortgage loan wholly because of death or disability.
This policy comes in handy to protect the lender, dependants and guarantors against the risk of death or disability before full settlement of the advanced mortgage loan.
WHAT IS THE SCOPE OF COVER?
- DEATH :- In the event of death of a member while servicing a mortgage, Madison Insurance pays the outstanding loan at the time of death.
- PERMANENT & TOTAL DISABILITY:- In the event of a member becoming Permanently and Totally disabled while servicing a morgage, Madison Insurance shall pay the outstanding balance as at the occurrence of such event.
ARE THERE ANY ADDITIONAL OPTIONAL BENEFITS?
- FUNERAL CASH COVER:- This option covers the burial expenses of the borrower. The amount of cover is payable within 48 hours of reporting the claim. This amount is not recoverable from the main claim.
- LIFE SUPPORT: - The policy offers life assurance equivalent to 30% of the initial loan value subject to a maximum of Ksh.500,000.00
WHY PURCHASE?
Benefits to the Lender:-
- Guarantees the lender full recovery of outstanding loan.
- Relieves the lender the hassles of following up guarantors and dependants.
- Improves profitability as bad debts are reduced.
- By not repossessing the home of a deceased loaneee, the mortgagor builds an acceptable reputation.
Benefits to the Guarantor:-
Protects Guarantors against property being attached or having to pay off loans they guaranteed.
Benefits to the borrower:-
- Security of the borrower’s estate. The family retains the house even in the event of the owner dying or becoming permanently disabled.
- Eases the financial burden in case of disability.
WHO MAY PURCHASE?
Individuals taking Mortgage Loans.
