SRINAGAR: The J&K Bank and MetLife India Insurance Co Ltd jointly launched a drive Tuesday to provide financial security to the families of their borrowers.
“The proposition bundled with Met Loan and LifeSuraksha’, a group term insurance plan, will ensure that in case of the ‘untimely’ death of the borrower the family members are not burdened to repay the loan amount to the bank,” the bank said in a press statement issued here.
“In such a scenario, the outstanding liability will be settled under the terms and conditions of the policy by MetLife,” it added.
Besides prospective customers, the bank aims to cover “some existing borrowers” who have not secured their loans against eventuality of the borrower’s death, it said.
Executive President of the bank, Parvez Ahmad, said in the statement, “We have launched this proposition in line with our agenda of Customer Centricity and promoting need-based products only.”
“While it is not compulsory for our customers to buy the life insurance products offered by MetLife to secure their loans, we would recommend the same to protect their family from any unforeseen financial liability arising out of an unexpected death of the borrower,” he added.
Sameer Bansal, Director Bancassurance, MetLife India said: “We have seen enough evidence where a family of a borrower struggles to repay loans in case of an untimely death. It is an additional burden on the family which can be easily taken care of by prudent investment in a loan protection product.”
He said Met Loan and Life Suraksha ensure that a customer’s loan amount is protected and that there is no financial burden on the family in case of his death.
“This is an integral part of MetLife’s need based selling strategy to ensure that the customers buy products which are important for protecting their financial future,” he added.