Policy Summary
Credit life assurance is a life policy that pays out the amount owing to the Bank/ financier in the event of death or on total and permanent disability of the life assured as a result of accident or natural illness. The policy ensures that, title to the financed asset is transferred free and clear to beneficiaries.
Benefits of Credit Life Assurance
- The borrower or beneficiary is protected from surrendering their assets to the financier in the event of inability to service their loan following incapacity or demise of the loanee
- The financier is safeguarded from loss of the lent funds
Types of Credit Life Assurance
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Single Life Policy
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Joint Life Policy
| Benefit | Details of Cover |
| Death | The insurance company shall pay the outstanding debt and interest as at date of death due to natural or accidental causes. |
| Total Permanent Disability | A member rendered totally and permanently incapacitated by injury or illness from his usual occupation, the insurance company shall pay the principal loan outstanding and accrued interest |
| Critical Illness | An insured person being diagnosed for the first time with any one of the following conditions; cancer, heart attack, stroke, kidney failure, coronary artery bypass surgery, paraplegia, and major organ transplant, the insurance company shall pay 100% of outstanding loan and interest up to the maximum amount specified in the policy. |
| Retrenchment/Loss of Income | In the event of retrenchment or loss of income, the insurance company shall make payment of six (6) or nine (9) months’ installments immediately upon retrenchment or proven loss of income arising from damage/loss of financed asset/business |
| Free Cover Limit | Refers to the maximum amount payable without need for medical examination. |
| Extensions | • AIDS/HIV and pre-existing conditions • Political Violence and Terrorism • Enhanced age limit |
