Africa-Press – Namibia. MOBILE Telecommunications Limited (MTC) yesterday introduced a life cover insurance policy to be offered to all post-paid customers nationwide, to pay off their contractual obligations in the event of death.
MOBILE Telecommunications Limited (MTC) yesterday introduced a life cover insurance policy to be offered to all post-paid customers nationwide, to pay off their contractual obligations in the event of death.
A credit life insurance is a policy designed to pay off a borrower’s outstanding debts in the event of death.
According to Licky Erastus, MTC’s managing director, the new policy settles the balance for the remainder of the contract. Therefore, the credit life insurance policy’s value drops proportionately as the loan balance is paid off over time until both approach zero.
MTC further explained that the insurance cover comes into effect when an application is accepted or once the individual renews the post-paid contract package.
Erastus said the company has come into an agreement with Momentum Metropolitan Namibia that has pledged to support the initiative.
“The credit life is underwritten by Momentum Metropolitan Namibia. The credit life insurance benefit will be paid to the credit provider upon the death of a life-insured who enjoys cover in terms of this policy,” he said.
“The cover will be offered at MTC mobile homes countrywide and customers who are interested in the MTC credit life insurance cover will need to make a one-off payment, which is calculated based on the customers’ contract duration, as well as their contract device cost,” Erastus said.
“It is a one-off payment, therefore, it will differ from customer to customer, based on the customer’s contract terms. The cover is applicable to existing, new and renewed contracts.
“The benefit is paid out through a claims process as soon as satisfactory documentary evidence is provided, proving that the customer has died, he explained.
The group chief executive officer of Momentum Metropolitan Namibia, Sakaria Nghikembua, said the group’s objective is to ensure financial inclusion for every Namibian, adding that the partnership with MTC provides the opportunity to do so.
“We are particularly pleased to be able to partner with a reputable company such as MTC to deliver financial services to the broader Namibian population, and thereby achieving the twin objectives of financial inclusion and economic growth for Namibians,” Nghikembua added.
A credit life insurance is a policy designed to pay off a borrower’s outstanding debts in the event of death.
According to Licky Erastus, MTC’s managing director, the new policy settles the balance for the remainder of the contract. Therefore, the credit life insurance policy’s value drops proportionately as the loan balance is paid off over time until both approach zero.
MTC further explained that the insurance cover comes into effect when an application is accepted or once the individual renews the post-paid contract package.
Erastus said the company has come into an agreement with Momentum Metropolitan Namibia that has pledged to support the initiative.
“The credit life is underwritten by Momentum Metropolitan Namibia. The credit life insurance benefit will be paid to the credit provider upon the death of a life-insured who enjoys cover in terms of this policy,” he said.
“The cover will be offered at MTC mobile homes countrywide and customers who are interested in the MTC credit life insurance cover will need to make a one-off payment, which is calculated based on the customers’ contract duration, as well as their contract device cost,” Erastus said.
“It is a one-off payment, therefore, it will differ from customer to customer, based on the customer’s contract terms. The cover is applicable to existing, new and renewed contracts.
“The benefit is paid out through a claims process as soon as satisfactory documentary evidence is provided, proving that the customer has died, he explained.
The group chief executive officer of Momentum Metropolitan Namibia, Sakaria Nghikembua, said the group’s objective is to ensure financial inclusion for every Namibian, adding that the partnership with MTC provides the opportunity to do so.
“We are particularly pleased to be able to partner with a reputable company such as MTC to deliver financial services to the broader Namibian population, and thereby achieving the twin objectives of financial inclusion and economic growth for Namibians,” Nghikembua added.
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