The death benefit under this policy will be the outstanding loan amount, as on the date of death of the insured borrower, as set out in the Schedule to the Certificate of Insurance.
There are no survival or maturity benefits associated with this product.
The coverage shall be terminated and a surrender value shall be paid if the borrower prepays the outstanding loan amount in full before the coverage expiry date or if the group policyholder cancels the policy under circumstances such as winding up or any other form of corporate restructuring and results in the group policyholder ceasing to exist after such restructuring.
The amount of surrender value payable would be determined as follows:
Refund = (t / n) * Tabular single premium * k
t = balance number of years of policy term as at the date of surrender (rounded off to the next lower integer)
n = Outstanding loan term at the time of commencement of coverage
Where; k = 60% if (a) n<= 5 years
(b) t is greater than 1/3 of the original term n
Otherwise, k = 30%