Mortgage Protection Insurance    

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 United States dollars. This cover offers up to $600,000 United States dollars upon completion and acceptance of simple application which includes a short form medical questionnaire. Mortgage Protection Insurance is offered in joint and single policies.

Who is this policy for?

• Existing and 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)

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.

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.

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.

Fixed Term Life Insurance with Accidental Death and Dismemberment (AD&D)

In addition to the benefits received for Fixed 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. Fixed Term Life Insurance with AD&D provides security for the policy holder and its beneficiaries.

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Premiums

Premiums for Mortgage Protection Insurance are based on age, sex, and tobacco for sums insured under $600,000 US Dollars. For sums over $600,000, dependant upon the sums insured and age of the individual, a sliding scale of medicals will need to be performed and the Premium will be reflective of the results.

Benefits

• Coverage can be obtained at the same time as a mortgage facility
• Provides peace of mind that the family is not left with the burden of paying off debt in the event of death
• Fixed premium over the term of the mortgage
• Short Form Medical Questionnaire for up to $600,000 US Dollars
• Premiums can be paid monthly or annually

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Frequently Asked Questions

1. 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 30 years. If the mortgage is paid before the maturity date the insurance becomes void.

2. 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.

3. 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 Fixed 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.

4. Can I cancel this policy at any time?

Yes, this policy can be canceled at any time. The customer will be reimbursed for any unearned premium.

5. 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.

6. If I have a diagnosed illness can I purchase Mortgage Protection without supplying any medical information?

For up to $600,000 US Dollars you will need to complete a short medical questionnaire, which will be reviewed by BF&M prior to cover being approved. Acceptance will be based on the answers provided. For sums over $600,000, dependant upon the sums insured and age of the individual, a sliding scale of medicals will need to be performed.

7. 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.

8. How do I make a claim?

Claims notifications can be submitted to HSBC Bank (Cayman) Limited:
Monday-Friday, 9am - 4pm Customer Service: +1 345 949 9555

This information is intended to be a summary of the policy cover provided to us by BF&M General Insurance Company Limited in our capacity as an insurance agent of BF&M General Insurance Company Limited. For complete details of the policy cover, terms and conditions please call on +1 345 949 9555.

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