Credit Life Protection is a decreasing term cover that a bank can offer to individuals taking any kind of a loan from the bank including personal loan, credit card or Mortgage. The coverage is designed to protect both the borrower and the lender. Credit insurance is always sold in connection with a specific loan. 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 or disability.
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 or disability. Hence, this product has been designed to protect both the parties against adverse consequences.
In-case of the unfortunate death of the insured full outstanding loan balance is paid off, subject to maximum sum assured The sum assured is a reducing amount of cover, over the loan repayment term.
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 – Waiting Period of 30 Days: Outstanding credit card balance is paid off, subject to maximum sum assured.)