– BNP Paribas Cardif Life Insurance provides ‘Hyundai Loan Relief Service’ in partnership with Hyundai Savings Bank, which pays off the remaining loan balance of the policyholders in case they pass away or are diagnosed with TPD or cancer
– This advanced insurance service protects policyholders from unexpected financial burden and helps financial institutions to better manage lending risks
BNP Paribas Cardif Life Insurance, the Korean subsidiary of BNP Paribas Cardif, the insurance arm of BNP Paribas, today launches ‘Hyundai Loan Relief Service’ ((NP) The Safe Credit Protection Group Insurance) with its partner Hyundai Savings Bank.
This new service will be available for borrowers of Hyundai Savings Bank who are running their own businesses. It will pay off the remaining balance if policyholders pass away or are diagnosed with total permanent disability of 80% or more, a state in which they are not capable to repay their debts. On the one hand, it protects policyholders and their families from bearing the debt-servicing liabilities. And on the other hand, it also helps financial institutions better manage their risks of lending. This kind of product is very common in many advanced markets including Europe and Japan.
‘(NP) The Safe Credit Protection Group Insurance’ will provide the financial protection for five years after subscription and a credit line up to KRW 50 million. The insurance premium of this service will be fully covered by Hyundai Savings Bank. Customers can easily subscribe to this service with no additional charge, by just filling out an application form when they sign up for the loan services offered by Hyundai Savings Bank.
Byung Uk Lee, Chief Marketing Officer of BNP Paribas Cardif Life Insurance, said: “’(NP) The Safe Credit Protection Group Insurance’ is an advanced financial service with a unique structure, which provides benefits to both debtors as well as lenders.”
BNP Paribas Cardif Life Insurance introduced the first creditor protection insurance products to banks in 2002 and credit card firms in 2004 in South Korea. This year, it has also launched two other creditor protection insurance products: one that helps Renault Samsung vehicle buyers pay off their car loans through Renault Capital, and the other that helps borrowers of Shinhan Savings Banks pay off their Hug Loans.