Etiqa Life and General Assurance Philippines and state-run Social Security System (SSS) have extended their partnership to provide cover for pensioners who took out loans from the pension fund.
According to a report by the Philippine Star, the two parties signed a memorandum of agreement last week, as part of the implementation of the SSS’s Pension Loan Program (PLP).
Etiqa, which was formerly known as AsianLife & General Assurance Corp., has been the credit insurance partner of SSS since the launch of the programme in September 2018.
The PLP provides financial assistance to pensioners who have borrowed from the pension fund. The recently enhanced programme allows pensioners to borrow a maximum amount of PHP200,000 (around US$4,000), depending on their basic monthly pension.
Borrowers will also be covered by group credit life insurance, provided by Etiqa, which secures the loan in case of their death. To qualify for the program, retiree-pensioners should be 85 years old or below by the end of the loan repayment term, and must have no outstanding loan balance and benefit overpayment deductible from their monthly pension, the report said.