Mortgage Protection Insurance is an insurance policy that is designed to repay the balance of a mortgage, up to the maximum sum assured, in the event the borrower dies before the mortgage is repaid. Customers can receive the maximum sum assured face amount of $2 million Bermuda dollars. Mortgage Protection Insurance is offered in joint and single policies.
Who is this policy for?
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New HSBC mortgage customers
Coverage Features
Customers may choose between the following Mortgage Protection options:
- Decreasing Term Life
- Decreasing Term Life with Accidental Death and Dismemberment (AD&D)
- Fixed Term Life
- Fixed Term Life with Accidental Death and Dismemberment (AD&D)
Fixed Term Life Insurance
Fixed Term Life Insurance pays the total face amount of insurance on the balance of the mortgage in the event the policy holder dies prematurely. The beneficiaries named in the policy will receive the balance of the funds remaining after the mortgage has been paid off.
Decreasing Term Life Insurance
Decreasing Term Life Insurance provides coverage that decreases as the balance of the loan decreases. The sole function of this policy is to protect your beneficiaries by paying the outstanding balance of the mortgage given the insured amount is sufficient.
Normal Term Life Insurance with Accidental Death and Dismemberment (AD&D)
In addition to the benefits received for Normal Term Life Insurance, this coverage provides additional protection by disbursing an amount that is twice the sum insured if the policy holder dies by Accidental means. Normal Term Life Insurance with AD&D provides security for the policy holder and its beneficiaries.
Decreasing Term Life Insurance with Accidental Death and Dismemberment (AD&D)
Decreasing Term Life Insurance provides coverage that only pays the balance of the loan when the policy holder dies. When this is combined with the AD&D feature, the policy holder can be confident that any funds remaining after the balance of the loan has been paid will be forwarded to the beneficiary.
Premiums
Premiums for Mortgage Protection Insurance are based on age, sex, and tobacco usage.
Benefits
- Can be obtained at the same time as a mortgage
- Family is not left with the burden of paying off debt
- Fixed premium over the term of the mortgage
- Premiums can be paid monthly or annually
- How long does Mortgage Protection Insurance coverage last?
Mortgage Protection Insurance is effective for the duration of your mortgage. The maximum term for a mortgage is 35 years. If the mortgage is paid before the maturity date the insurance becomes void.
- If multiple individuals secure a mortgage will they each have to purchase individual Mortgage Protection Insurance policies?
Mortgage Protection Insurance can be purchased as a joint policy. The maximum number of individuals on the same policy is two. Only one Mortgage Protection Insurance policy can be used for a single mortgage. The other mortgage holders should look to purchase supplemental life insurance.
- If my partner and I purchase a joint policy and something happens to him / her, will I receive a payment or does it go directly to HSBC?
If the customer has purchased Decreasing Term Life Insurance, payment will only be made to satisfy outstanding debt with HSBC. The joint partner on the policy will only receive a benefit payment in cases where Accidental Death and Dismemberment (AD&D) has been purchased and the insured dies by accidental causes.
If the customer has purchased Normal Term Life Insurance, payment will be made to satisfy remaining debt with the Bank; however, any remaining funds will be disbursed to the joint partner on the policy. If Accidental Death and Dismemberment (AD&D) was also purchased with Normal Term Life, the joint partner will receive the additional insured amount remaining once the loan has been repaid. This additional payment will only occur if the insured dies by accidental means.
- Can I cancel this policy at any time?
Yes, this policy can be canceled at any time. The customer will be reimbursed for the remaining period.
- If I make additions to my home, will the price of my Mortgage Protection Insurance policy increase?
Many individuals purchase insurance to cover a portion of their mortgage, and will not need to alter this amount if there is a change to the home structure. It is recommended that you buy additional coverage with any additional financing obtained.
- If I have a diagnosed illness can I purchase Mortgage Protection without supplying any medical information?
Yes, you can still purchase this product if you have an illness, however, no benefit will be paid if your death is caused or contributed to by:
- A pre-existing condition for which you were receiving treatment (including taking medication) in the 12 months preceding the date of your application if the death occurs in the first 12 months following the effective date of your coverage.
- Suicide within 24 months of the application, whether sane or insane.
- Will the premiums for Mortgage Protection Insurance change as I get older?
The premiums for this insurance coverage will remain the same throughout the period of the mortgage.
- How do I make a claim?
Claims can be submitted directly to BF&M Life Insurance Company Limited:
Monday-Friday, 8am to 5pm Customer Service: +441 295 5566
After Hours 24/7 Claims Helpline: +441 298 0247
This information is intended to be a summary of the policy cover provided to us by BF&M Life Insurance Company Limited in our capacity as an insurance agent of BF&M Life Insurance Company Limited. For complete details of the policy cover, terms and conditions please refer to the policy document.
HSBC Bank Bermuda Limited (the “Bank”) is acting solely as an insurance agent of BF&M Limited and its subsidiary companies (“BF&M”) pursuant to its insurance agent licence issued by the Bermuda Monetary Authority (and not as an insurance agent for the customer) with respect to this/ese insurance product(s). The Bank is not responsible in any way for the underwriting, administration or claims handling of insurance products, and does not accept any responsibility for such matters. HSBC Insurance is the brand name for insurance products offered by HSBC Group members HSBC Bank Bermuda Limited is licensed to conduct Banking and Investment Business by the Bermuda Monetary Authority.
All questions, concerns and claims must be submitted directly to BF&M.
