Loan Secure - Loan protection plan for SMEs and rural banks
An affordable package plan that offers financial protection for rural banks and for other small to medium lending institutions in case of borrowers’ untimely death.
What is Loan Secure?
Loan Secure is a loan protection plan designed to safeguard lending institutions by covering outstanding loans in the event of a borrower’s death, total permanent disability, or accidental death. It provides peace of mind for both lenders and borrowers by ensuring that loans are repaid, even in unforeseen circumstances. With automatic enrollment for smaller loans and optional benefits for added protection, Loan Secure is an essential solution for managing business loan risks.
Plan key benefits and features
Loan Secure offers essential benefits to both lenders and borrowers, providing financial protection and peace of mind. Here’s why it’s the right choice for securing your loans:
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Protection from the death of the borrower with unpaid loans In the event that the insured borrower dies, the amount of insurance will be paid to the lending company to pay off the outstanding loan. Terms and conditions apply.
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No underwriting required Automatic approval of insurance coverage for borrowers with loan amount of 300,000 and below.
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Flexible service fee Service fee for your company may vary based on your preference.
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Additional protection for employees FREE insurance coverage for the employees of your company for a minimum of 70 enrolled borrowers with a total loan volume of 3,000,000. Terms and conditions apply.
What does Loan Secure insurance cover?
| Coverage type | Description |
| Death coverage | Pays off the outstanding loan balance if the borrower passes away to provide relief to the borrower's family and the lender. |
| Accidental death benefit | Additional coverage if the borrower dies due to an accident to ensure an extra payout. |
| Total and Permanent Disability (TPD) | Pays a lump-sum amount if the borrower becomes permanently disabled and is unable to work for life. |
| Comprehensive accident protection | Covers accidental dismemberment or disability, with cash benefits for the borrower or their beneficiaries. |
| Employee protection | Provides free coverage for employees of the lender if at least 70 borrowers are enrolled, with a loan volume of P3,000,000.
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Optional benefits
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Comprehensive accident protection Secured payment for loans in case an insured borrower becomes disabled or suffers loss of body parts due to an accident. In the event the borrower dies because of an accident, the beneficiaries will receive an additional insurance benefit.
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Total and permanent disability benefit (TPD) The borrower will be paid a lump sum amount equivalent to the death benefit if the borrower becomes totally and permanently disabled for six (6) consecutive months and is unable to work or will be unable to work for life due to disability.
Who are eligible for this program?
Borrowers ages 18 to 64 years old who secured loans from rural banks, lending companies, and cooperatives
Groups of at least 10 debtors
How does the claim process work?
Filing a claim for Loan Secure is a simple and efficient process. To get started, visit the Manulife claims page for more information and to submit your claim online.
Required documents:
Claimant's statement specific to the type of claim (e.g., death, disability, or accident).
Valid Government-Issued ID of the claimant.
For death claims: Certified death certificate and proof of the loan balance.
For disability claims: Medical reports and a physician’s statement confirming total disability.
For accident-related claims: Accident report and medical documentation related to the injury.
Timeline:
Once all required documents are submitted, your claim will typically be processed within 7 working days.
Frequently asked questions
Loan protection insurance is not required by law, but many lenders include it as part of the terms for approving a loan to ensure that outstanding balances are covered in case of death or disability.
Premiums for the loan secure insurance are based on factors such as the loan amount, number of borrowers, and chosen coverage options. The service fee may vary based on preferences agreed upon by the lender and Manulife.
Loan protection coverage typically applies at the time of loan origination. To add coverage to an existing loan, you should consult your lender or Manulife advisor for eligibility and options.
Loan Secure can cover each loan under the agreement with the lender, meaning multiple loans can be insured as long as they are part of the same loan protection plan arrangement.
Loan Secure insurance proceeds typically go directly to the lender to clear the outstanding loan balance. Excess proceeds (if any) may go to the borrower’s heirs or beneficiaries, depending on the policy terms.
Want to learn more about Loan Secure?
Talk to a financial advisor today!