BNP PARIBAS CARDIF LIFE INSURANCE-MIRAE ASSET CAPITAL, PROVIDING GROUP CREDITOR INSURANCE ‘HOME SAFE PLAN’ FOR RENTAL HOUSING CUSTOMERS
BNP Paribas Cardif Life Insurance announced that it will start offering the group creditor insurance ‘Mirae Asset Capital Home Safe Plan’ to improve the housing stability of rental tenants from Nov 4.
Two companies signed a partnership to activate creditor insurance in September, and as the first collaboration, they introduced a group creditor insurance service for rental housing tenants for the first time in the secondary financial sector. While the housing stability of the vulnerable is greatly threatened by high interest rates, inflation, and housing fraud, it is part of the joint inclusive finance practice at the level of the secondary financial sector to share the pain of rental housing tenants and support housing stability.
Customers can benefit from the Home Safe Plan service with a simple agreement, and they can prepare for the risk of non-repayment in advance since this group creditor service will repay the remaining loan balance and overdue interest of up to KRW 50 million in case of death or being diagnosed with more than 80% of disability during the service period. As Mirae Asset Capital pays 100% of the insurance premium, customers have no burden to pay the premium.
In addition, since the tenant himself or the bereaved family members are not asked for the right to indemnity, they can maintain the daily life without debt inheritance, and there is no burden of inevitably moving during the rental housing period, which contributes to the improvement of the overall housing stability of the vulnerable groups.
Jonathan Oh, the President and CEO of BNP Paribas Cardif Life Insurance said, “Recently, the Financial Services Commission announced that it aims to improve the economic recovery of borrowers and the recovery value of creditors based on debt settlement between financial companies and debtors through the implementation of the Personal Debtor Protection Act, which is in line with the ultimate goal of creditor insurance, which seeks to function as a social safety net as a ‘loan safety net’. We hope that the ‘Home Safe Plan’ will support the financial authorities’ efforts by improving the soundness of the loan and preemptively preventing individual default, and help to achieve the win-win situation between borrowers and creditors”.
BNP Paribas Cardif Life Insurance, which has been leading the domestic creditor insurance market for more than 20 years, is putting effort to enhance the awareness of creditor insurance in Korea. The company operates ‘Credit Care Guide’, which gives useful information on wise credit management, and the ‘Credit Care Academy’, focusing on financial education on credit management for the financially vulnerable. It will also start a quiz event at the official Instagram account from Nov 4.
