Probably the biggest financial commitment most of us undertake is a house or a business loan. But how is this loan going to be serviced if the income flow stops or reduces drastically should you die or suffer from a critical illness? Your assets, which you have spent years building up, may have to be sold forcibly to repay your loan.

The EFU Loan Protection Plan, by providing a capital sum on death and critical illness, can ensure that your loan will be repaid leaving your assets unencumbered.

The Benefits
Taking into account the term of your loan and the interest rate payable, we will tailor the plan to suit your needs. The Plan will provide a level of cover which will reduce approximately in line with the reduction of loan capital outstanding through the term of the loan.

The reduction of the loan capital is dependent on the interest rate payable. The graph below illustrates the effect of various interest rates - a higher interest rate implies a higher principal amount of loan outstanding at any point in time.

The EFU Loan Protection Plan gives you the facility to choose the level of cover at four different interest rates. This means that you can ensure that on death the cover available will be more or less sufficient to repay the outstanding loan, leaving your home or business unencumbered.

High Cover for a Nominal Cost
Example: Male aged 40 next birthday
To cover a principal amount of loan of Rs. 500,000 for a 20 year term and at 10% interest rate, the annual premium would be Rs. 3,915 i.e. just over Rs. 10 per day.

Additional Benefits
The following riders can be added to the main plan:

Lifecare Benefit
Lifecare Benefit Plus
Waiver of Premium