MetLife unveils "loan assure" for J&K Bank customers

MetLife India Insurance Company, one of the country's fastest growing life insurance firms, today introduced here a 'Loan Assure' scheme that would provide life cover to J&K Bank's loan customers.

"Met Loan Assure is a customized product developed exclusively by MetLife for our customers, keeping in mind the growing demand of credit in the state," J&K Bank Chairman and CEO Haseeb Drabu told reporters.

The plan will add value to the customers because it will help them take loans with the safety net of life insurance, he added.

The product covers all types of loans -- home, education, vehicle and personal loans.

It is a specially designed group insurance plan that provides life insurance cover specifically for a loan taken by an individual, Metlife Managing Director Rajesh Relan said.

It ensures financial security for the loan holder as the insurance proceeds can be used to repay the outstanding loan amount in case of the unfortunate demise of the insured individual, he said.

Through the product, the company want to help the loan customers achieve peace of mind so that "the asset remains an asset for the family," Relan added.

"We are committed to providing our customers with a comprehensive financial solution under one roof...We have help desks set up at most of our branch offices to handle all inquiries about this product," Drabu said.

Met Loan Assure is a Single Pay MRTA (Mortgage Reducing Term Assurance) solution on a group platform. The product is designed to target financial institutions or employers who lend loans.

Explaining the key features of the plan, Relan said all persons between the age 18-60 are eligible to this insurance. Maximum maturity age is 70 years or the day on which the outstanding amount is repaid in its entirety, which ever is earlier, he said.

Met Loan Assure could be offered on a single life or on a joint life basis (joint life is available only for home loans) depending on the way the loan is held.

The minimum and maximum coverage terms are three years and 25 years.

He said, premium payment mode is single premium and the payment can be made directly by the customer or it can be even financed by the bank.

The sum assured is minimum of Rs 5,000 per life, maximum is equivalent to the loan amount outstanding at the commencement of risk cover, he said, adding, but this cannot exceed Rs five crore at any point.

Metlife through its bank partners and company-owned offices is present more than 600 locations and the insurer has more than 32,000 financial advisors who help customers.