Table of contents
- What does MPI cover?
- Who is eligible?
- Who is the Policyholder & Beneficiary of the policy?
- What is the maximum sum that can be insured?
- How long does MPI coverage last?
- Is MPI a mandatory condition of getting my mortgage or is it an optional coverage?
- What are premiums based on?
- How often are premiums charged for MPI?
- Will the premiums for MPI change?
- Can I cancel this insurance at any time?
- Do I have to answer any medical questions?
- If there are multiple individuals on my mortgage, will we all be covered under MPI?
- If a joint policy is purchased, will each of us have to pay a premium or is it just one premium for both?
- If I made additions to my home, will the price of my MPI policy increase?
- What is the claims process?
What does MPI cover?
This decreasing term life insurance provides coverage on your outstanding Mortgage balance. Subject to the terms and conditions in the policy.
Who is eligible?
This insurance is available only to mortgage customers of HSBC who are ordinarily residents of Bermuda, and who are borrowers of a mortgage on a non-commercial Bermuda property between the ages of 20 and 60.
Who is the Policyholder & Beneficiary of the policy?
HSBC Bank Bermuda Limited is the policyholder and the sole beneficiary entitled to receive the eligible benefits due at the death of the Life Insured.
What is the maximum sum that can be insured?
The maximum sum insured available under this Policy is $2,000,000 (aggregate). This means that any other group creditor insurance that you may have with BF&M Life Insurance Company Limited for a mortgage, line of credit or other loans will be included in the $2,000,000 maximum sum insured limit.
How long does MPI coverage last?
MPI is effective for the duration of your mortgage. If the mortgage is refinanced or paid off before the maturity date, the insurance is terminated.
Is MPI a mandatory condition of getting my mortgage or is it an optional coverage?
MPI is an optional product that you can purchase at any time during the life of the mortgage.
What are premiums based on?
Premiums are based on the age of the Life / Lives Insured and the amount of insurance at the time you complete the Application for Life Insurance. The first Premium is payable on the effective date of coverage and will be debited on or as soon as possible thereafter from the account provided by you.
How often are premiums charged for MPI?
Annual and monthly payments are both available. If you pay the premium on an annual basis, the total premium will be 8% lower than if you elect to pay your premium in monthly installments. Premiums are level, meaning they will remain the same amount for the duration of the mortgage subject to the other terms and conditions in the policy.
Will the premiums for MPI change?
The premium rate for this policy is guaranteed for 12 months. After the first 12 months, BF&M reserves the right to change the premium rate for this insurance coverage at any time with 30 days advanced notice to you.
Can I cancel this insurance at any time?
Yes, this policy can be cancelled at any time. Customers will have a 30 day cooling off period from the effective date of insurance in which to cancel your insurance coverage with full reimbursement.
Do I have to answer any medical questions?
You will be required to answer seven health questions in order to qualify for MPI. In the event that you answer yes to any of the questions, you are not eligible for the product.
If there are multiple individuals on my mortgage, will we all be covered under MPI?
Coverage is available on either an individual or joint basis. For joint coverages, the maximum number of individuals on the same policy is two and only one MPI policy can be used for a single mortgage. Where more than one person is insured in relation to a single mortgage, the death benefit is payable on the first death of a Life Insured, at which time, the insurance ceases.
If a joint policy is purchased, will each of us have to pay a premium or is it just one premium for both?
For joint coverage, the premium is the sum of the two individual premiums minus 15%.
If I made additions to my home, will the price of my MPI policy increase?
MPI is coverage against your mortgage commitment, not the physical structure of your home.
However, if the Mortgage is refinanced, the MPI policy is considered terminated and you will have to purchase a new MPI policy for the new mortgage amount.
What is the claims process?
All death claims are to be reported to HSBC as soon as possible, but no later than within 180 days of the date of death. HSBC will provide all required forms, and reserves the right to obtain all necessary records and medical reports in order to assess the claim.