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Mortgage Loan Assurance Plan
We all know that home is where the heart is. This is why we present you with Mortgage Loan Assurance Plan ("the Plan"), which is underwritten by The Prudential Assurance Company Limited ("Prudential") and designed to provide you and your loved ones with simple and hassle-free mortgage protection. With the Plan, you can build your future more securely and with peace of mind.
Life protection for your peace of mind
The Plan includes a life protection package. In the event of death of the Life Assured during the benefit term, his/her loved ones (i.e. the beneficiary) will receive the sum assured1, which can be used to settle the outstanding mortgage balance, and so reduce the financial burden.
Simplified underwriting2 for hassle-free protection
You can enjoy hassle-free protection, as this plan is designed to offer simplified underwriting to customers who are income earners aged 19-55 (age next birthday) and are applying for or have taken out the mortgage loan amount equivalent to HK$6,000,000 or lower. By making a simplified underwriting declaration only, you do not need to worry about providing complicated information about your medical history.
Sum assured diminishes on a monthly basis to reflect your need
With the Plan, the sum assured will diminish on a monthly basis, according to the benefit term and the interest rate at 8% p.a., in order to match the level of mortgage protection needed. At policy inception, the minimum sum assured is HK$360,000, while the maximum sum assured is equivalent to HK$8,000,000 or the mortgage loan drawdown amount (for a new mortgage applicant of the Standard Chartered Bank (Hong Kong) Limited ("the Bank")) or the mortgage loan outstanding amount (for existing mortgage customers either with the Bank or not), whichever is lower on a per Life Assured basis.
Premium discount
You can enjoy a premium discount on the policy with a sum assured of HK$2,000,000 or above. For details, please contact the Bank's staff.
Different payment methods to suit your needs
You can choose the payment method and benefit term that best suit your financial needs. The Plan provides coverage up to age 71 (age next birthday). Other than for the single premium payment, the premium payment period will be 3 years less than the benefit term.
| Single premium payment | Regular premium modes: monthly, quarterly, semi-annually and annually | |
| Issue age of the Life Assured (age next birthday) | Age of 19 - 66, or 71 (age next birthday) less benefit term, whichever is lower | Age of 19 - 61, or 71 (age next birthday) less benefit term, whichever is lower |
| Benefit Term3 | 5 - 30 years, or till age 71 (age next birthday), whichever is shorter | 10 - 30 years, or till age 71 (age next birthday), whichever is shorter |
Single premium payment for better financing service
The calculation of premium is based on the Life Assured's age, gender and selected benefit term. If you choose to pay your plan in regular mode, your premium will be levelled during the whole premium term, so you do not have to worry about future premium increments. Also, should you choose the single premium payment method, you can opt for a premium payment financing service4, in which the repayment period can be as long as the mortgage repayment period. This way, you can enjoy coverage conveniently and easily.
Example:
| Example 1 | Example 2 | |
| Total sum assured: HK$1,000,000 Gender: Male (non-smoker) Age: 30 (age next birthday) Interest rate: 8% p.a. Benefit term: 20 years Interest rate of the premium payment financing services: Prime*-2.65% |
Total sum assured: HK$5,000,000 Gender: Male (smoker) Age: 50 (age next birthday) Interest rate: 8% p.a. Benefit term: 15 years Interest rate of the premium payment financing service: Prime*-2.65% |
|
| Single Premium | HK$16,470 | HK$332,500 |
| Single Premium with Premium Financing | HK$21,139.20 (including interest required from single premium payment financing service) |
HK$401,896.80 (including interest required from single premium payment financing service) |
| Annual Premium | HK$1,650 / year (HK$28,050 in total for the whole benefit term) |
HK$40,000 / year (HK$480,000 in total for the whole benefit term) |
| Semi-annual Premium | HK$850 / half-year (HK$28,900 in total for the whole benefit term) |
HK$20,600 / half-year (HK$494,400 in total for the whole benefit term) |
| Quarterly Premium | HK$430 / quarter (HK$29,240 in total for the whole benefit term) |
HK$10,500 / quarter (HK$504,000 in total for the whole benefit term) |
| Monthly Premium | HK$150 / month (HK$30,600 in total for the whole benefit term) |
HK$3,550 / month (HK$511,200 in total for the whole benefit term) |
* "Prime" is the prevailing Hong Kong Dollar Prime rate quoted by the Bank from time to time and is subject to change.
The premium of the above example is calculated based on the assumptions as stated and is for illustration purpose only.
An average daily premium can be as low as HK$2.265!
Act now and give your loved ones the gift of security!
Remarks
| New Mortgage Applicant of the Bank | Any Customer who has a Mortgage Loan (either with the Bank or not) |
|
| Application period | within 60 calendar days from the date of your mortgage loan application | within 60 calendar days from the date when the Bank's staff has first introduced the Plan to you |
| Policy inception date | will take effect within 120 calendar days after the date of application of the Bank's mortgage loan, provided the mortgage loan has been draw down and the premium required has been paid in full to Prudential within the same period | will take effect within 120 calendar days from the date when the Bank's staff has first introduced the Plan to you, provided the premium required has been paid in full to Prudential within the same period |
| Sum assured amount | the total sum assured for the Plan(s) per Life Assured does not exceed HK$6,000,000 (Maximum sum assured amount is HK$6,000,000 or mortgage loan drawdown amount, whichever is lower) | the total sum assured for the Plan(s) per Life Assured does not exceed HK$6,000,000 (Maximum sum assured amount is HK$6,000,000 or mortgage loan outstanding amount, whichever is lower) |
| Insured Age | 19-55 (age next birthday) | 19-55 (age next birthday) |
| Income earner | Yes | Yes, For mortgage loan not with the Bank, applying for the Plan which sum assured between HK$3,000,000-6,000,000, total annual income of the proposer should be equal to or above HK$450,000 |
| Able to make related simplified underwriting declaration (for details, please contact the Bank's staff) | Yes | Yes, provided that customers do not have any in-force mortgage related term assurance policies (including policies issued by other insurance companies, not Prudential) |
Terms and conditions of application for the Plan
Important Note:
For mortgage customers of the Bank, the decision of whether or not to apply for a Mortgage Loan Assurance Plan has no bearing on your mortgage loan application or your existing mortgage.
The Mortgage Loan Assurance Plan ("the Plan") is underwritten by The Prudential Assurance Company Limited (incorporated and registered in England and Wales) ("Prudential") and distributed by Standard Chartered Bank (Hong Kong) Limited ("the Bank"). A customer who has bought the Plan has the right to cancel the policy within the cooling-off period and obtain a refund of any premium(s) paid less any withdrawals. Provided that no claim has been made, the customer may cancel the policy by giving written notice to Prudential within 21 days after: (a) the delivery of the policy or (b) the issuance of a notice (informing the availability of the policy and expiry date of the cooling off period) to the customer / his/ her representative, whichever is earlier.
The Bank is an insurance agent of Prudential.
As the issuer of the Plan, Prudential will be responsible for all protection and claims issues. Prudential is not an associate or subsidiary company of the Bank. This leaflet is not a contract of insurance and is intended to be a general summary for reference purpose only. Please refer to the policy for full terms and conditions. The Bank does not accept any responsibilities regarding any statements provided by Prudential or any discrepancies or omissions in the contract of insurance nor shall the Bank be held liable in any manner whatsoever in relation to your contract of insurance.
This leaflet is intended to be distributed in Hong Kong only and shall not be construed as an offer to sell or solicitation to buy or provision of any insurance product outside Hong Kong. Prudential and the Bank do not offer or sell any insurance product in any jurisdictions outside Hong Kong in which such offering or sale of the insurance product is illegal under the laws of such jurisdictions. This leaflet does not constitute a contract of insurance or an offer, invitations or recommendation to any person to enter into any contract of insurance or any transaction described therein or any similar transaction. Whether to apply for insurance coverage is your own individual decision. For Prudential's life assurance plan policy provisions, details, exclusions and risk disclosure, please refer to relevant plan's product leaflet/offering document and specimen policy.
Should there be any inconsistency or conflict between the English and the Chinese versions, the English version shall prevail for all purposes.