Personal Loan Protection Plan

Product Profile

You work hard to achieve a decent lifestyle for yourself and your family. Part of that lifestyle probably depends on finance, loans, an overdraft, and other financial commitments.

Have you ever stopped to think what would happen in the event of death, disability, critical illness or dread disease? Could you or your loved ones manage to carry on paying the monthly bills? If not, goods could be repossessed, assets might have to be sold, and the family home may even have to be put on the market.

If commitments are unpaid because an accident or an illness prevents you from earning your usual income, your credit record could be ruined. Future finance might be impossible to get.

The good news is that Adamjee Life credit protection policy provides cover in the case of personal loan, hire purchase or overdraft facility taken at the bank. Personal loan and hire purchase are normally taken for a set term and the total debt decreases as payments are made.

Choose Adamjee Life credit protection policy and, if the unexpected happens, those financial commitments will be paid on your behalf.

 

Credit Life personal Loan Protection is a decreasing term cover that an individual can purchase while taking an personal loan from the bank that protects both the borrower and the lender. Credit insurance is always sold in connection with a specific loan. The cost of the insurance (if any) is generally built in the loan repayment.

It's a type of cover in which the amount of the policy matches the loan balance at any given time; designed so that full payment will be made in the event of death, disability or critical illness.

The banks have a constant threat of not only facing a financial loss in case of death of the creditor, but also damages its reputation by trying to recover money from the family of the deceased.

Similarly, even the borrower does not want to leave the burden of a loan on his/her family, in case of death, disability or Critical illness.

Hence, this product has been designed to protect both the parties against adverse consequences.

Your need for Credit Life Insurance

• To protect your family against possible loss of a valuable asset in the event of untimely death, disablement or critical illness
• Loss of income due to temporary disablement, which could result in one of the above mentioned accounts falling into arrears
• To prevent possible repossession of goods should you be unable to maintain payments
• To prevent estate complications
• Peace of mind at time of trauma as it provides cover towards finance agreement

Immediate Cover

The moment you have signed for Adamjee Life credit protection policy, your cover comes into immediate effect subject to the terms and conditions laid out in the policy document. You will then have the peace of mind that:

• Payment will be made towards your finance agreement if the worst happens to you
• You will have eliminated financial risk, and your assets will be more secure
• Your family will be protected from an added financial burden
• Your credit-worthiness will be protected

Benefits

Death Benefit

In-case of the unfortunate death of the insured full sum assured is paid to the beneficiaries outstanding personal loan balance if paid off, subject to maximum sum assured. The sum assured is a reducing amount of cover, over the loan repayment term.

Temporary Total Disability

Total temporary disability provides coverage to the insured in case of temporary disability as a direct result of an accident that would prevent the insured person from following his/her own occupation or any other occupation to which he/she is reasonably suited for by education or training.

(Accident only ? Own Occupation ? Waiting Period of 30 days: Minimum monthly installment due on the personal loan with a maximum of 3 payments per claim, limited to 6 payments in total.)

Permanent Total Disability

Total permanent disability provides coverage in case of disability that would prevent the insured person from following his/her own occupation or any other occupation whish he/she is reasonably suited by education or training.

(Accident or Sickness - own or Similar Occupation - Waiting Period of 30 Days: Outstanding personal loan balance is paid off, subject to maximum sum assured.)

Critical illness

Critical illness provides coverage against 21 dread diseases as mentioned in policy documents.

(Waiting Period of 90 Days: Outstanding personal loan balance is paid off, subject to maximum sum assured).

In the event that the outstanding personal loan balance is paid off under this policy, the policy thereafter terminates.

Advantages

• Easy and small premium payments
• Full outstanding loan re-payment by insurer in case of death
• Outstanding personal loan protection in case of death / temporary or permanent disablement / Critical illness
• Valuable protection to your family by paying off your debts with the assistance of policy term incase of unfortunate death.
• Wide range of products covering: Home Loan, Auto Loan, Personal Loan & Credit Card
• Peace of mind since your liabilities are protected.

What is Credit Life insurance?

Credit Life insurance covers the outstanding balance of your loan. The insurance company repays the loan in case of your unexpected death, disability and critical illness. It gives your family time to deal with their loss and temporarily relieves them from major financial stress.

How much credit life insurance do I need?

Most people should carry enough insurance to cover all outstanding debt.

Can I insure just a portion of my loan?

It's important to protect your entire debt, but you can decide the percentage of loan that you want to insure.

After my loan is paid off or refinanced, what happens to this insurance?

The policy terminates.

How often do I make payments?

Depends on the payment schedule.

How do I apply for insurance?

Simply complete an application at your desired bank branch. Most customers enroll when they apply for a loan. The premium becomes a part of the loan repayment.

Do I need to take a physical exam?

Most customers do not need to take a physical exam. The company will inform the customer if any medical examination is required.

What is the approval process?

Credit Life policies are pre underwritten so approval is given instantly, in most cases.