What is a Loan Life Insurance?

Loan Life Insurance is an insurance contract guaranteeing the repayment of the capital remaining due under a loan in the event of the death or absolute and definitive disability of the policyholder.

How Does it Work?

In the event of the death of the policyholder or their (his/her) absolute and definitive disability, the Insurer shall pay the financial institution the outstanding capital up to the limit of the policyholder capital and subject to the other conditions laid down in the insurance contract, in particular, the insurance exclusions.

The outstanding capital is determined on the basis of the amortization table of the loan issued by the financial institution and is established on the date of the policyholder's death or, in the event of absolute and definitive disability of the latter, on the date of the determination of the state of disability by the attending physician or by the expert(s) in the event of contradictory expertise.

If mentioned in the contract, penalties and interest due to late repayment of the loan by the policyholder may be taken into account in determining the outstanding capital.

In the event of a claim, the insurer must be notified of the claim along with the supporting documents specified in the insurance contract.

Type of Insurance:

Loan Life Insurance is a personal insurance policy that can be taken out individually or as a group policy.

Population concerned:

Loan Life Insurance is intended for anyone wishing to take out a loan with a financial institution, particularly a mortgage loan.

 

Rights and Obligations of the policyholder?

We invite you to refer to the "Insurance Guide" published on the ACAPS portal.

What does the Authority do?

Within the framework of the powers vested in it by Law No. 64-12 establishing the Insurance and Social Security Supervisory Authority, the latter institution ensures that any and all insurance products offered to consumers are understandable, balanced, useful and that they comply with the regulations in force. It also shall monitor the reliability of the information provided to policyholders and ensure the fair treatment of policyholders by Insurers.

Legal/Judicial Remedies in Case of Dispute with Your Insurer?

In accordance with Article 7 of Law No. 64-12, the Insurance and Social Security Supervisory Authority has the power to investigate complaints from customers of insurance companies and the intermediaries (brokers) thereof. Nevertheless, it is recommended that you first contact the broker or Insurer against whom your complaint is directed. If the dispute persists after this step, you can contact ACAPS by one of the means at your disposal. The Authority shall then examine your complaint and take the most appropriate action, in accordance with the legal and regulatory provisions and within the scope of its powers, to settle the dispute

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