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Group Credit life

Group credit life assurance policy

Credit life insurance is a life insurance policy designed to pay off a borrower's debt if that borrower dies within the loan period. The face value of a credit life insurance policy decreases proportionately with an outstanding loan amount as the loan is paid off over time until both reach zero value.

The main objective of the group credit cover is to provide a capital sum on death of any member of the scheme, equal to the loan outstanding in the books of the scheme at the time of death of the member, instead of the loan being written-off.

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Benefits:

  • Upon death of the member, the policy pays into the financial institution’s account and makes an additional payment of Tshs. 1,000,000 into the members estate to meet funeral expenses.

  • The policy will pay outstanding loan with interest in the event of the policyholder becoming incapacitated (to the extent of being unable to attend to their normal routines).

  • In the event of death of a spouse or dependant, Tshs. 500,000 will be paid to the member to assist in funeral expenses.

Premium Payment

All premiums, shall be payable at the head office of the Insurer. The assured may pay the insurance premium based on sum assured either monthly, quarterly, semi-annualy or annually.

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