In today's credit driven world, it is sometimes difficult to not depend on loans for a comfortable living. These loans have to be repaid on a regular basis to the bank or lending institution. Most of the time the loan is taken in order to buy a house or a car or some other appliance that will add comfort and convenience to us and our loved ones. It is important to appreciate that the loan is given by the lending institution in return for the promise of repayment. But what if the unfortunate happens and the loan is not repaid? No lending institution will let go their money. They will either recover their money or confiscate the property or item purchased with the money. Some of the questions that we need to ask ourselves at this point are as under:
The National Life Mortgage Redemption plan enables one to set aside small sums of money so that your outstanding loans can be paid out. This policy has a reducing sum assured based on the term and Sum assured chosen. What that means is that as your debt keeps decreasing over time, the appropriate sum assured also keeps reducing. This way the plan gives you a dynamic risk protection based on the diminishing risk. By the time you have paid out your debts, the risk covered by this plan would cease. Low Premiums
Understand the duration for which you need the dynamically diminishing protection (the term), the total outstanding loan amount, make the decision and start making the contributions (premiums) on a monthly, quarterly, half- early or annual basis.
Being a protection plan, one can have peace of mind knowing that if death happens to the income earner before the settlement of the loans, ones dependants would be given funds by National Life to clear off the outstanding debts.