MTC introduces Credit Life insurance
• By Tracy Tafirenyika
THE Mobile Telecommunications Company (MTC) has announced the coming into service of MTC Credit Life, a new insurance product designed to provide credit life cover to MTC customers with post-paid packages.
In a press statement send to Confidente the MTC Managing Director, Dr Licky Erastus, said the MTC Credit Life is an insurance cover for a postpaid contract, which pays off the remainder of one’s contract in the event of pasa customer’s death.
“Credit Life Insurance is a policy that is designed to pay off a borrower’s outstanding debts in the event of the borrower’s death. As the loan balance is paid off over time, the credit life insurance policy’s value drops proportionately with it, until both approaches zero.
“The applicant will be covered under this policy upon acceptance or renewal of a post-paid contract package, which includes a mobile device, airtime consumption, and bundled data services given by MTC. 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. The benefits are paid when the insurer receives satisfactory documentary evidence that the life assured has passed on,” Dr Erastus explained.
He added that the cover will be offered at MTC Mobile Homes countrywide.
“Customers who would like to opt into the MTC credit life insurance cover, will need to make a once-off payment – which is calculated based on the customers’ contract duration as well as their contract device cost. For example, if a customer has an outstanding contract term of 18 months, with a device value of N$4000, the once-off payment required to initiate the cover would be N$39. The once-off payment will thus differ from customer to customer, based on the customer’s contract terms.
“The credit life cover is applicable to existing, new, and renewed contracts.
The benefit is paid through a claims process as soon as satisfactory documentary evidence is provided, proving that the customer has died. The cover will automatically terminate as soon as the postpaid contract duration ends or in the event of a contract being suspended due to non-payment. Further terms and conditions are listed within the MTC Credit Life terms and conditions available on MTC’s website,” Dr Erastus stated.