Mizuho introduces “Pair Loan Group Credit Life Insurance” in co-operation with Dai-Ichi Life
Mizuho Bank will begin offering Pair Loan Group Insurance provided by Dai-ichi Life from July 1, 2024. This will be the first home loan offering among major banks that allows enrollment in joint group credit life insurance for pair loans.
Pair Loan Group Insurance covers the total remaining debt of both parties if something happens to either spouse or partner using a pair loan when purchasing a home.
In conventional group credit life insurance for pair loans, each spouse or partner enrolls with their own debt balance as the insured amount. Therefore, if something happens to one party, the remaining debt of the surviving party remains, and they need to continue repayments. The newly launched product allows enrollment with an insured amount equal to the total debt balance of both parties, in preparation for an unfortunate event happening to either spouse or partner. This ensures that if something happens to either party during the loan period, the remaining loan debt of both parties will be fully repaid by the insurance benefit, providing “stability of livelihood” for customers contracting home loans and securing “certainty of debt collection” for financial institutions. This is the first time in the life insurance industry that joint group credit life insurance is being offered to pair loan users.
By introducing this product, Mizuho Bank aims to alleviate future repayment concerns for customers who choose pair loans, in response to the recent increase in dual-income households and diversification of lifestyles.
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