Prevent your loved ones from financial hardship by satisfying an outstanding financial obligation.
What Is Credit Life Insurance
The Geminia Credit Life Policy is a life insurance solution that is taken out by a lending entity in order to offset or to pay off a borrower’s outstanding debt in the unfortunate event of their death, disability, or unemployment.
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Who can apply for a credit life cover?
The policy is issued in the name of the Financier, but the cover is based on the loanee/member taking up the loan.
Lending institutions include:
- Microfinance Institutions,
- Banks,
- SACCOS and/or any registered Group lending to its members (Registered groups can be Employers, Registered Self-Help Groups, Hire Purchase Organizations, Micro-Lenders, etc.)
Features of the Plan
- Structure of Policy – The policy is issued in the name of the lending entity (Financier), but the cover is based on the loanee/member taking up the unsecured credit facility.
- Eligible Entities – The policy can be taken up by lenders such as microfinance Institutions, Banks, SACCOS and/or any registered Group (Employers, Registered Self-Help Groups, Hire Purchase Organizations, Micro-Lenders, etc
- Reducing Cost – Cost of credit life insurance reduces in value throughout the policy since it only covers the outstanding balance on the loan.
- Inbuilt – Most institutions offer it as a cove built into the credit facility to ensure here is no gap.
Benefits
Safety of Property – The borrower’s property is safeguarded against being used as compensation for outstanding loan
Peace of mind for Joint Borrowers and dependents – The borrower’s loved ones or other co-loanees are relieved of the responsibility to pay outstanding loan in the unfortunate event of their death or disability.
Extensions – This policy can be extended to cover the retrenchment of the borrower for a specified period as they look for another job.
Reducing costs – The premium payable reduces with the loan repayment
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FAQs
Who is covered?
the policy is issued in the name of the Financier, but the cover is based on the loanee/member taking up the loan
What is covered?
the members are covered for the risks of Death and Permanent & Total Disability. Additional Benefits such as Critical Illness and Retrenchment Benefits can be included in the policy at an extra cost
What is the maximum age limit?
Eligible members who are 18 – 65 Years of age
Premium paying options?
Clients can pay a Single Premium at beginning of cover to insure them for the full loan term, or pay Annual premiums based on Reducing the balance of the loan as at policy anniversary
Is Credit life mandatory?
Most lenders have built it into the credit facilities to protect both the borrower and the lending institution
Does one require medical examination to take up Credit life beyond a certain limit?
A medical exam is not a mandatory requirement for one to take up the Credit Life Insurance cover
