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Overview
Credit Life Insurance is a type of insurance that provides assurance by covering the outstanding loan balance in case of the insured's death or total and permanent disability.
It is designed for individual loan borrowers to safeguard their financial obligations. If the insured passes away during the insurance term, the insurer settles the debt with the bank, thus eliminating any potential debt burden for the deceased. Any remaining amount, if applicable, is disbursed to the family after the debt settlement.
Features
- The insurance period corresponds directly to the term specified in the loan agreement.
- The insurance period aligns with the loan term. For policies with a shorter duration than the loan term, annual automatic renewal can be set up, with premiums deducted from your credit card or account.
- This insurance is available to individuals and businesses aged 18 to 74 who are in good health and eligible for credit, across both personal and commercial sectors.
- Premium calculations take into account factors such as age, loan duration, payment method (single or monthly), loan amount, and health condition.
- Portions of the paid premiums can be tax-deductible within specified limits, not exceeding the annual gross minimum wage:
- Salaried individuals can deduct 15% of their monthly salary received in the month of payment.
- Annual income tax filers can deduct 15% of their declared annual income.
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