MEMBERS of Pag-IBiG can now enjoy better insurance benefits as various features of the Mortgage Redemption Insurance (MRI) have been upgraded.
In a statement, Pag-IBiG said a new feature of the MRI is that the burial benefit of the insurance has been increased from P20,000 to P22,000 following renegotiation with the fund’s new life insurance provider in June.
The burial benefit is just one of the many features of the MRI, said the statement.
Pag-IBIG had conducted a bidding process in 2014, thus “ending the almost 30-year negotiated insurance coverage of all Pag-IBIG home loan borrowers since the 1980s,” the fund said.
The fund noted that the MRI renders the housing loan fully paid upon death of the borrower provided the amortization payments are up to date.
Aside from the burial benefit feature, it also pays the loan in full upon determination of total permanent disability, provides amortization support of up to P500,000 in case of terminal illness, and grants experience refund wherein 20 percent of the insurer’s profits are refunded to the insured borrower.
Pag-IBIG said these features were not included in the MRI of the previous insurance provider.
“The new contract also removed the additional premiums for OFWs and those classified as “medically sub-standard,” which were charged by the previous insurance provider,” the fund said.
Meanwhile, in line with new administration’s thrust to reduce red tape the processing time for the MRI has been cut to 24 hours, from the previous 30 days.
“Even with these apparent superior features, premiums were cut by half from P0.41 per P1,000 to only P0.23 per P1,000,” Pag-IBIG said.
“Pag-IBIG Fund is continuously implementing reforms and introducing innovative programs that would ensure the provision of more benefits to Pag-IBIG members,” Pag-IBIG president Darlene Marie Berberabe said.
After the successful bidding for a life insurance provider, Pag-IBIG said the Fire and Allied Perils insurance for properties subject of Pag-IBIG housing loans will be the next to be bidded out.