This benefit protects the policyholder’s family from burdensome loan obligations and the bank from increased default due to the unfortunate event of the death of the policyholder.

The risk cover shall terminate after the payment of the primary benefit.

Level Cover* - The Risk Cover or Sum Assured will be the same throughout the Coverage Term. This is applicable only to interest-only loans

Decreasing Cover* - The Risk Cover or Sum Assured will reduce as per the Sum Assured Schedule (SA Schedule) derived using the Loan Interest Rate & the Coverage Term at the time of coverage inception. Our liability will be determined based on the Sum Assured (SA) schedule and not the Actual Outstanding Loan Amount at the time of claim.

The moratorium period under the plan is available for both Level and Decreasing Cover, during which the members shall be given an option to service or not service interest payments. A moratorium period of 1 (one) month to 10 (ten) years (in multiples of 1 month) can be chosen under the plan. The moratorium period must always be less than the coverage term.

The surrender value payable at any point of time during the coverage term will be derived as follows:

Surrender Value = 70% of the Premium (excluding taxes and cesses) received in respect of member * Term Factor * SA Factor
where Term Factor = Unexpired Policy Term in months (ignoring days) divided by Original Policy Term in months

SA Factor = Outstanding Sum Assured (as per the Certificate of Insurance) divided by Maximum Sum Assured until the date of Surrender (as per the Certificate of Insurance)

The risk cover under the policy will cease after the surrender value has been paid.