Finance-Linked Life Insurance

In the event of a death or disability occurring during the insurance period, the loan settlement amount valid as at the date of the claim will be paid to the bank.

The sum insured and the policy term are consistent with the loan amount and repayment schedule. The sum insured decreases monthly in line with the repayment schedule. As the insured repays the loan, the sum insured decreases accordingly.

In the event of the insured person’s death, the loan balance is settled using the cover in force at that time; once the loan has been settled, any remaining amount, if any, is paid to the beneficiaries.

Furthermore, to ensure that your loan instalments are not disrupted in the event of unexpected job loss, you may, if you wish, include unemployment cover in your policy. This way, you will have comprehensive protection for your loan repayments.

Insured persons who are entitled to unemployment benefit under the İŞKUR scheme may claim this benefit, provided they have worked continuously for 180 days at the same workplace and have completed the 90-day waiting period as of the start date of their insurance cover. Compensation equal to the involuntary unemployment benefit is paid for each full month that unemployment continues until the individual takes up new employment (up to a maximum of 4 months). The individual must have worked for 90 days from the start date of their insurance cover, and unemployment must have continued for at least 30 days from the date they became unemployed.

• If you are an employee, you may claim a tax allowance of 15 per cent of your gross monthly salary and the total amount of the annual gross minimum wage;
• if you are self-employed, you may claim a tax allowance of 15 per cent of your declared annual income, provided that this does not exceed the total amount of the annual gross minimum wage.