When people start repaying a loan, they are bound to think how they would keep up with the payments if their circumstances unexpectedly change, either through an accident, health problems, job loss or even death. Such situations could put the burden of repaying a loan on their loved ones.

To provide peace of mind and ease the situation for those finding themselves in such difficulties, HSBC Bank Malta, in collaboration with four of Malta’s top insurance companies, is the first local bank to launch personal loan credit insurance.

This protects the amount outstanding in monthly instalments on a personal loans from HSBC. It is designed to cover loan repayments in the event of an accident, sickness, involuntary unemployment or death. Through the insurance, which is optional and covers HSBC personal loans through the payment of an additional small monthly premium, the borrower knows that should circumstances change unexpectedly, loan repayments will be covered.

Clients are offered various options,either taking out complete life, accident, sickness and unemployment insurance or selecting one of the options to suit their particular needs. The four available options are life policy on its own, accident and sickness policy on its own, accident, sickness and unemployment policy, or life, accident and sickness policy.

To offer this product, HSBC has teamed up with four long-established local insurance companies. The life element of the cover will be provided by HSBC Life Assurance (Malta) Ltd while the accident, sickness and unemployment part will be provided by Elmo Insurance Ltd as the lead co-insurers with Atlas Insurance PCC Ltd, Citadel Insurance plc and GasanMamo Insurance Ltd as the other co-insurers subscribing to the policy.