This is an insurance protection plan that covers the repayment of an outstanding property loan to the financier or lender in the event of untimely death, disability or critical illness of the borrower.
The mortgage protection covered is type of decreasing term assurance which provides a death benefit that decreases over time. The premiums stay constant for the period of the cover, but the mortgage protection benefits decrease with each year as the mortgage repayment gradually reduces the home loan.
A lumpsum is payable in the event of death to repay the outstanding mortgage debt to the lender, but will continue to decrease by a fixed amount during the period of the term, decreasing to nil by the end of the insured period. If the mortgagor survives the term, no premiums are refunded and there is no cash value.
Value Added Mortgage (VAM) Protection Assurance
In a Value Added Mortgage (VAM) Protection Assurance, there is more. VAM Protection Assurance combines both protection and cash value. Therefore, your premium payments are applied both for protection and guaranteed return of premiums paid at the end of the term.
If the life assured survives the term and no claim arises during the full term of the VAM Life cover, all premiums (100%) paid by the life assured and received by ICEA Limited will be refunded. In order to build these refunds, the premiums charged on VAM protection assurance are higher than normal Mortgage protection premiums.
Customer Support
ICEA sustains high quality customer service through employee ...
Read more...
