Aviva Newsroom - 9 September 2010

Mortgage Assurance Now Brings More Protection to your Loved Ones

Aviva Hong Kong Launches Comprehensive Mortgage Reducing Term Assurance Plan

UK’s largest insurer Aviva announced today the launch of the Aviva Mortgage Reducing Term Assurance Plan in Hong Kong, providing the much-needed peace of mind that homebuyers want when purchasing a property. The comprehensive plan is designed to help policyholders repay a mortgage in the event of death, terminal illness and permanent or temporary disability.

A survey conducted by Aviva on consumer attitudes to savings in 2009 has found that two-thirds (66%) of Hong Kong people see their home as the most significant part of their future financial security. When asked what they would do if they suddenly received a windfall of three times their annual income, 49% of respondents said they would use it to buy a new or second home.

Despite the favourable current interest rate environment and positive sentiment in the property market, many homebuyers remain hesitant to act due to mortgage repayment concerns.

“Buying a new home is a major financial commitment. The fear of not being able to meet mortgage obligations due to unfortunate events beyond our control is making the decision-making process even more difficult. To protect your loved ones from the repercussions of an unfortunate event, it is imperative to take precautions before it is too late. For this very important reason, we have developed our Mortgage Reducing Term Assurance Plan.” said Ms Elba Tse, General Manager of Aviva Hong Kong.

Through the Aviva Mortgage Reducing Term Assurance Plan, homebuyers who lose their ability to repay the mortgage due to death or terminal illness may be eligible to receive a lump-sum benefit to settle their mortgage commitment.

The plan also includes a total and permanent disability benefit of up to a maximum of HK$10 million and an involuntary unemployment benefit, which allows policyholders to defer premium payments for a maximum of 365 days, while still being able to enjoy the comprehensive protection during the deferment period.

According to the Hong Kong Monetary Authority’s recently announced residential mortgage survey results for July 2010, the number of new mortgage loans applications during July have risen by 17.9% to 25,877 compared to June.

“The launch of our new mortgage protection plan is in direct response to the growing number of mortgage applications and underscores our ongoing effort to anticipate and respond to our customers' changing needs. This plan enables people in Hong Kong to purchase their dream home without having to worry about creating an additional financial burden for their family if they lose the ability to repay their mortgage. It is all about protecting your family while achieving your goal of being a home owner with a comfortable living environment.” Ms Tse said.


Product Details

Entry Age Minimum age: 19 (age next birthday)
Maximum age: 70 (age next birthday)
Policy Term 5 – 30 Years
Premium Term Regular Premium from 5 – 30 years (subject to policy term)
Payment Mode Monthly or Annual
Minimum Sum Assured HK$1,000,000 (in multiples of HK$1,000)
Distributors DBS (Hong Kong) Bank, Independent Financial Advisers in Hong Kong


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