The Standard Bank Home Loan Protection Plan provides coverage of up to R2 million for individuals who have a home loan with Standard Bank Home Loans. The plan protects the home loan in case of death, permanent disability, or a serious illness.
Individuals aged between 18 and 55 are eligible to purchase the product, and coverage expires when the policyholder reaches the age of 75.
The Standard Bank Home Loan Protection Plan offers a variety of coverage options, which are discussed in detail below.
Standard Bank Home Loan Protection Plan Options
Access Home Loan Protection Cover
The Access Home Loan Protection Plan is one of two Standard Bank home loan protection plans. Individuals aged between 18 and 55 are eligible for the plan, which provides coverage of up to R810,000.00.
Access Home Loan Protection is available in two income-based options: Plan Q and Plan R. The access home loan protection plan includes bundled benefits for these options.
Plan Q is for formally employed individuals and covers death, temporary disability, permanent disability, and loss of employment. Plan R offers the same coverage as Plan Q and is available to self-employed, informally employed, and contract workers.
Both plans provide coverage for permanent disability, temporary disability, and loss of employment benefits until the policyholder reaches the age of 65. The policy is then converted to a death-only policy that expires at the age of 75.
The Access Home Loan Protection offers several advantages, which are discussed below:
The Access Home Loan Protection comes with a cooling-off period of 31 days. Within this period, the policyholder can opt-out of the plan without having to pay a premium. Alternatively, the policyholder can stay on the policy or change the policy and get a refund for premiums already paid.
The Standard Bank Access Home Loan Protection Plan comes with a grace period of 31 days. The plan provides the policyholder with extra days if they fail to pay the premiums due on time.
If the policy is not maintained for two months, it will be terminated, assuming that the policyholder no longer wants the policy. The policyholder has one month to respond if they still want to be covered under the policy.
The plan covers the policyholder for disability with a cover of up to R810,000.00. The plan pays the home loan should the policyholder suffer an injury while insured by the plan. Late payments are not covered for disability, and the policyholder will be responsible for the payment of any lagging payments and fees.
The plan covers loss of income due to retrenchment and covers the loan repayments for up to a maximum of 12 months after being retrenched. During this period, the policyholder does not have to pay any premiums to the Access Home Protection Plan.
The plan does not pay any amounts that are left in arrears, and the premiums on the plan must be up to date to make a claim.
Temporary Disability Benefit
The temporary disability benefit provides cover when you cannot earn an income from your usual business, job, or another job. The policy covers temporary disabilities resulting from illness or disease or visible injuries caused by an accident.
The temporary disability benefit pays an equal amount of money for the next month before you become temporarily disabled. However, the plan won’t cover any late payments or outstanding payments for the home loan.
Extensive Home Loan Protection Cover
The comprehensive home loan protection cover protects individuals aged between 18 and 55, and the plan’s maximum cover amount is R2,000,000.00.
Customers can choose from four different plans for comprehensive home loan protection: Plan M, Plan N, Plan O, and Plan P.
Plan M is available for those who want a death-only policy, which expires when the policyholder reaches the age of 75. Plan N provides protection against death, temporary disability, retrenchment, and dread disease. When the policyholder reaches the age of 75, the cover is converted to a death-only policy and expires.
Death, temporary disability, total and permanent disability, and dread disease are all covered under Plan O. The plan pays out up to 12 months’ premiums up to a maximum of R2 million in the event of death. When the policyholder reaches the age of 65, the policy is converted to a death-only policy, and the policy expires when the policyholder reaches the age of 75.
Plan P provides coverage for death, temporary disability, and total and permanent disability until the policyholder reaches the age of 65. The plan then becomes a death cover and expires when the policyholder reaches the age of 75.
Advantages of Standard Bank Home loan Protection Plan
- Subscribing to the cover is easy, and there are different plans to choose from.
- The maximum cover amount is high for the majority of home owners in South Africa.
- Retrenchment and temporary disability receive up to 12 months of home loan premium repayments, and claims can be made online.
- Premiums decrease as the home loan amount decreases.
- Accidental death is covered immediately by the plan with no waiting period, and loss of income due to disability or temporary disability is covered by most plans.
Disadvantages of Standard Bank Home Loan Protection Plan
- Premiums on the plan can increase if you engage in demerit activities, and the cover doesn’t provide any cashback for premiums paid.
- Additionally, the cover lapses with no surrender benefit when the policyholder reaches the age of 75.
The Standard Bank Home loan protection plan offers customers a variety of plans to choose from, each dedicated to a specific user. The coverage includes numerous benefits on each plan, giving policyholders good value for their money. However, since the policy lapses when the policyholder reaches the age of 75, the plan does not reimburse the policyholder for any premiums paid, even if the policyholder was claim-free during the policy period.