To cover loss of member’s Loan upon Death or Total and Permanent Disability (TPD), SEDP MBA insured the loan of the member with a minimal premium of 1.5% per annum computed based on the loan amount and term.
Credit Life Insurance Plan covers the principal amount of the loan within the prescribed loan term for the benefits stated below:
- LOAN REDEMPTION
The outstanding loan balance of the member during his/her death or total and permanent disability is considered paid.
SEDP MBA shall assume payment of the outstanding principal amount to the loan provider thereby considered full payment of the loan.
- 2. LOAN REFUND
SEDP MBA will compute the Principal amount paid by the member upon his/her death or total and permanent disability, in so doing the total amount paid by the member shall be refunded to the declared beneficiary.