Below is a list of companies with the best Mortgage Protection Insurance Cover in Kenya:

Madison Group

Group Creditor / Mortgage

This policy seeks to protect the lender, borrower, dependents and guarantors from loan liability – as a result of death or disability before the full settlement of the advanced loan or mortgage.

This cover requires a minimum of 10 members

The policy covers death and total permanent disability, which would translate to inability to service the loan.

At additional premiums, the policy also caters to critical illness, last expense and retrenchment.

APA Insurance

Mortgage Protection

Group life schemes offer mortgage protection arranged on a yearly renewable or single premium basis for lenders to specifically protect the families of the deceased mortgagor from the risk of the lender reselling their home in the event of the untimely death or disability of the breadwinner. This cover provides the same benefit as for credit life.

Riders are benefits

that complement your plan and offer additional benefits at a relatively low cost. The riders include:

Total and Permanent Disability:

Where an amount equal to the death benefit sum assured will be paid to you in the event that you become permanently and totally disabled as a result of illness or accident.

Critical Illness:

If a member contracts a specified critical illness for the time (the first diagnosis). The specified illnesses are cancer, kidney failure, Paraplegia, heart attack for the first time in their life, Stroke, Coronary artery bypass surgery and major organ transplant. 30% of the accepted group life sum assured subject to an upper limit range of between Kshs. 1 to Kshs. 12 million will be payable. On subsequent death 70% or 100% will be payable to the next of kin depending on whether the benefit is stand-alone or accelerated.

Group Disability Income Insurance:

This rider Compensates for lost income during the disability period. The employer chooses the maximum period for disability benefit payment either 2 years, 5 years or up to normal retirement age.

Temporary Total Disability:

This benefit is payable if a member becomes wholly but temporarily incapacitated by bodily injury following his usual occupation hence unable to earn an income. The benefit payable is the actual weekly earnings for periods ranging between 1 to 2 years.

Medical Reimbursement:

This rider compensates for medical bills spent by the insured up to the agreed limit.

Jubilee Insurance

Group Mortgage Protection Cover

Securing your home in event of the death of the breadwinner is precaution that could save families from financial distress. A mortgage protection cover solves this by guaranteeing your loved one’s funds that they can use to help with mortgage payments in the event of your death.

Why get the Group Mortgage Protection Cover?

• Our mortgage protection policy also covers disablement of the borrower alongside the unfortunate event of their death.
• The sum insured per member, payable on death or disablement, will be the outstanding loan including interest associated with the mortgage agreement for which the borrower’s contract is affected.

Key Benefits

• Guaranteed repayment of mortgage loan
• Credit Life assurance and SACCO protection
• Fixed premiums for policy duration
• Flexible term to suit diverse loan duration
• Support in burial expenditures

KCB Bank

Mortgage Insurance and Servicing: Protecting Your Investment and Your Family

When you embark on your homeownership journey with a KCB mortgage, there’s more to consider than just the principal and interest payments. Two crucial aspects that play a vital role in protecting your investment and ensuring smooth management of your home loan are mortgage insurance and loan servicing. In this blog post, we’ll demystify these concepts and explain how they contribute to a secure and hassle-free mortgage experience. But first, what is mortgage insurance and what options do we have for you?

Understanding Mortgage Insurance

Mortgage insurance is a safeguard that protects both you as a borrower and us as a lender. It provides financial security in case of unforeseen circumstances that might affect your ability to repay your loan. At KCB, we offer several types of mortgage insurance to ensure comprehensive protection:

1. Mortgage Protection Insurance (MPI)

MPI is designed to pay off your outstanding loan balance in the event of your death. With coverage rates of 0.42% of the loan amount for one person or 0.63% for two persons, MPI provides peace of mind knowing that your family won’t be burdened with mortgage debt if the unexpected occurs.

1. House Owners Comprehensive Insurance (HOCI)

HOCI protects your property against damage from various risks such as fire, floods, and other natural disasters. With coverage of 1.25 per 1000 plus 0.05% of the insurance value, HOCI ensures that your home can be restored to its original condition in case of damage.

1. Retrenchment Insurance

In today’s uncertain job market, retrenchment insurance offers valuable protection. For just KES 1,500 per annum or KES 125 per month, this insurance covers your loan repayments for up to 9 months if you lose your job due to retrenchment.

1. Collateral Replacement Indemnity (CRI)

CRI allows you to access higher loan-to-value ratios, making homeownership more accessible. With a coverage of 2.5% on excess of 105% financing, CRI can help you secure the home of your dreams with a smaller down payment.

These insurance products not only protect your investment but also provide peace of mind throughout your homeownership journey.

The Ins and Outs of Mortgage Servicing

Mortgage servicing is the administrative aspect of your loan, handling day-to-day management and customer service. At KCB, we pride ourselves on providing excellent mortgage servicing to ensure a smooth experience for our borrowers.

Key aspects of our mortgage servicing include:

1. Collecting and Processing Payments: We offer multiple convenient payment options, including mobile banking, online transfers, and branch deposits. When we receive your payment, it’s promptly applied to your account, keeping your loan in good standing.
2. Managing Escrow Accounts: For many mortgages, we manage escrow accounts to handle property taxes and insurance payments. This service ensures these crucial expenses are paid on time, protecting your property and your credit rating.
3. Providing Customer Service: Our dedicated team is always ready to assist you with any questions or concerns about your mortgage. Whether you need information about your loan terms, want to discuss payment options or require assistance with documentation, we are here to help.
4. Handling Loan Modifications or Refinancing: Life circumstances change, and sometimes you may need to modify your loan terms or consider refinancing. Our mortgage servicing team can guide you through these processes, helping you find the best solution for your financial situation.
5. Managing Defaulted Loans: While we hope it never happens, we have processes in place to assist borrowers who face difficulties making their payments. If you ever find yourself in this situation, please contact us immediately. We’re committed to working with our borrowers to find solutions and avoid foreclosure whenever possible.

Our Top Tips for Effective Mortgage Management

To make the most of your mortgage, consider these tips:

1. Stay informed about your mortgage terms and conditions. Keep all your loan documents in a safe place and review them periodically.
2. Keep track of your payments and escrow account. Regularly review your mortgage statements to ensure everything is in order.
3. Communicate promptly with us if you face financial difficulties. The earlier we know about any issues, the more options we have to help you.
4. Regularly review your mortgage insurance coverage to ensure it still meets your needs as your life circumstances change.

At KCB, we’re committed to providing comprehensive mortgage solutions and excellent servicing to help you achieve and maintain your homeownership dreams. Our mortgage insurance products offer robust protection for your investment, while our dedicated servicing team ensures your loan is managed efficiently and professionally.

And there you have it folks. That is all we have for you in this episode, but we will be back with more mortgage gems that you do not want to miss.

Ready to take the next step? Contact KCB Mortgage through email at KCBKenyamortgages@kcbgroup.com or call us through 0711 087 000/0732 187 000.

Equity Bank

Mortgage Protection

This is a life insurance policy pays off the outstanding loan amount in the event of a borrower’s unfortunate death or permanent disability.

How to get started

1. Go to the form availed below to sign up.
2. Fill in your details.
3. Submit the details. A representative from our team will give you a call.

Family Bank

Group Mortgage Protection Insurance

Group mortgage protection insurance guarantees the continuity of your mortgage payments in the unfortunate event of your death, permanent disability, retrenchment or critical illness.

Benefits

• MPI is arranged to run for the same length of time as the mortgage period, ensuring you are properly covered
• The cost of MPI (premiums) depends on factors such as amount of mortgage plus age and health of borrower, getting you the best and most appropriate rate

Sumac microfinance

Mortgage Protection

Sumac Insurance Agency Ltd, through leading Insurance firms in Kenya offer mortgage protection arranged on a yearly renewable or single premium basis for lenders to specifically protect the families of the deceased mortgagor from the risk of the lender reselling their home in the event of the untimely death or disability of the breadwinner. This cover provides the same benefit as for credit life.

Key benefits

Riders are benefits that complement your plan and offer additional benefits at a relatively low cost. The riders include:

1] Total and Permanent Disability:

Where an amount equal to the death benefit sum assured will be paid to you in the event that you become permanently and totally disabled as a result of illness or accident.

2] Critical Illness:

If a member contracts a specified critical illness for the time (the first diagnosis). The specified illnesses are cancer, kidney failure, Paraplegia, heart attack for the first time in their life, Stroke, Coronary artery bypass surgery and major organ transplant. 30% of the accepted group life sum assured subject to an upper limit range of between Kshs. 1 to Kshs. 12 million will be payable. On subsequent death 70% or 100% will be payable to the next of kin depending on whether the benefit is stand-alone or accelerated.

3] Group Disability Income Insurance:

This rider Compensates for lost income during the disability period. The employer chooses the maximum period for disability benefit payment either 2 years, 5 years or up to normal retirement age.

4] Temporary Total Disability:

This benefit is payable if a member becomes wholly but temporarily incapacitated by bodily injury following his usual occupation hence unable to earn an income. The benefit payable is the actual weekly earnings for periods ranging between 1 to 2 years.

5] Medical Reimbursement:

This rider compensates for medical bills spent by the insured up to the agreed limit.