How loan repayment insurance works in Singapore
Here’s how loan repayment insurance works and how it can help your Singapore-based business.
Taking on a business loan is a huge commitment, whether to expand your business or simply to have access to more working capital. When the unexpected happens – such as an accidental death or accidental permanent disability – an unpaid loan can be a significant source of anxiety. Loan repayment insurance, however, can provide a safety net for when the unexpected happens. Here’s how loan repayment insurance works:
How do I apply for loan repayment insurance?
When you apply online for a business loan with DBS, simply enter the promotional code “SMEINS” and you will receive 12 months’ complimentary loan repayment insurance, underwritten by Chubb, on your business loan if it is approved. There is no need to put in a separate insurance application, which means the whole process is fuss-free and convenient.
What kind of coverage does loan repayment insurance provide?
The loan repayment insurance on your DBS Business Loan provides a S$100,000 benefit in the event of accidental permanent disability or accidental death. If the insured individual is hospitalised for at least seven days because of an accidental injury, the policy provides a skip loan benefit of up to three DBS loan instalments – including the principal amount and interest – capped at S$3,000 a month.
When does my insurance coverage start?
With loan repayment insurance, you’re protected from day one. Once your loan funds are disbursed, your loan repayment insurance policy will take effect, protecting you against accidental injury – and will provide a payout to DBS in the event that the insured individual is permanently disabled or dies in an accident.
What happens after the first 12 months of complimentary coverage?
After the first 12 months of complimentary loan repayment insurance coverage, you will receive a new policy number with the automatic renewal of your policy. Your loan repayment insurance policy is subject to an annual premium of S$267.50, including GST. Should you decide to terminate your loan or repay the entire loan amount in full, the equivalent of 12 months’ insurance premiums will be recovered from the borrower. DBS will debit the amount from any bank account the borrower maintains with the bank.
Where can I find out more information before signing up?
If you need to learn more about how the DBS Business Loan with loan repayment insurance works, check out our product website. You may wish to consult an Accident and Health (A&H) insurance intermediary before deciding whether loan repayment insurance is right for you.
Apply online today for a DBS Business Loan with complimentary 12-month Loan Repayment Insurance. Loan Repayment Insurance is underwritten by Chubb and distributed by DBS.
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