Humania Assurance recently added debt insurance protection to its Humania Assurance - Insurance Without Medical Exam product. IWME Debt Insurance is available online.
IWME lets clients who are hard-to-insure or who already had an insurance application turned down obtain coverage offering a disability benefit of $400 to $2,500 per month to cover mortgage loans, rent, credit cards, and car and personal loans. They can also obtain life insurance coverage of up to $300,000 and up to $100,000 in critical illness insurance protection.
“Offer your clients up to four term insurance coverages instantly issued online against premature death, critical illness and disability to cover loss of income or monthly debt payments,” Humania announced on its website.
Clients must answer six eligibility questions and can be insured in under 10 minutes. Debt disability insurance offers benefits for 12 to 24 months. The disability insurance premium can be established based on T10 or T20 coverage, with guaranteed renewal until age 65.
A retroactive benefit is included and there is a possibility of 75 per cent premium return every 20 years. “The waiting time before receiving benefits is 90 days. If the insured then becomes disabled for at least six consecutive months, they receive a lump sum,” says Kim Oliphant, vice-president, sales and marketing at Humania.
She is targeting the higher risk market. Advisors have often urged the insurer to design a credit insurance product for this niche. “No one covers debt in case of disability for hard-to-insure clients who were rejected somewhere else, for example. We have six questions and none concerns height, weight, profession or previous rejections,” Oliphant explains.
The product includes three insurance premium rates. People with conditions like AIDS or HIV, or who had drug addiction problems may be insured at the highest risk rate.