Mortgage Life provides protection against repossession by the financier of a property acquired through mortgage loans, should the policyholder(borrower) die or become permanently disabled before the end of the full repayment term. The outstanding mortgage (loan) balance will then be paid by miLife to the financier/Lender.
This product ensures that the financier of the mortgage facility is not saddled with the challenge of pursuing the assets of deceased or disabled borrowers, but are reimbursed the outstanding loan amount by miLife. It also provides total peace of mind to the surviving family members of the borrower by relieving them of the obligation to repay the loan when the borrower dies or suffers total and permanent disability.
Who is this policy for?
Mortgage institutions that want to ensure that their loans are recouped even when the borrower becomes deceased or disabled.
Cover and Benefit
The policy covers mainly death of borrowers and any of the following selected benefits:
- Total permanent disability as result of illness or accident
- Total temporary disability as result of accident
- Named critical illnesses
In the event of death or total permanent disability of the borrower, miLife will make a lump sum payment of the outstanding loan amount to the lending institution.
To be eligible for cover, the borrower (i.e. the Loan Beneficiary) should at the date of the application not be less than 18 and more than 60 years. However, individuals above 60 years will be subject to separate underwriting considerations.