What is Credit Life Insurance?
This is a life insurance policy designed to pay, for a borrower, the remaining principal balance, assuming the borrower had made all the due installments.
The policy applies in case of death, disability or even loss of employment of the borrower of a lending institution during the term of their loan.
Lending institution includes: Banks, Microfinance and Saccos.
What is the purpose of Credit Life Insurance?
The cover is meant to protect the lending institution against risk of unexpected death, disability or even loss of employment of a borrower.
This ensures that the lending institution gets paid.
What are the benefits of Credit Life Insurance?
Death: Covers death of a borrower due to illness, accident or natural causes.
Permanent Total Disability [PTD]: Covers permanent total disability, of a borrower due to an accident.
Critical Illness: Covers a first positive diagnosis of a critical illness, of a borrower [Heart attack, Cancer, Stroke, Kidney failure, major Organ Transplant, Coronary Artery Bypass Surgery & Paraplegia]
Funeral Expense Cover: Payment to cater for the immediate burial costs upon death of the borrower
Cover can be extended to cover the nuclear family for the same amount
Retrenchment: Covers loss of employment/Involuntary termination of employment.
This means without the employee’s fault, their employment is terminated through the employer’s initiative.
Deposit Cover: Pays an equivalent of a multiple of the member’s savings to his beneficiaries upon his unfortunate death.