Flexibility
The credit life insurance programs can be tailor made to meet the unique features of the lender’s loan portfolio.
Program design will depend on various factors including the following:
- Group size
- Total loan portfolio
- Maximum coverage amount required
- Age distribution of borrowers
- Coverage Amount: It could be level or reducing, usually adhering to the loan repayment pattern
- Premium Rate: It can be any one of the following - age specific, age banded or common rate depending upon the nature of the loan obligation
- Premium mode: Choices of Premium Payment Method/Frequency can be opted to meet lender’s system and manpower support
The Advantages of Group Credit Insurance
For the Lender
- A tool to attract and retain loyal customers
- Eliminates the burden of debt collection if the default of payment is caused by the death or disability of the borrower
- Product differential in an increasingly competitive market
For the Borrower
- Peace of Mind
- Emergency aid to cover debt in the event of misfortune
- Saves time and effort in arranging individual insurance
Tax Benefits
- You are eligible for Tax benefit as per the current tax laws.
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