CREDIT LIFE INSURANCE
This credit life insurance is designed to offer protection policyholders from the financial consequences of the inability to repay the outstanding loan due to death or permanent and total disability.
ADVANTAGES OF THE CREDIT LIFE INSURANCE
- To the loan provider (bank, cooperative, microfinance, association):
This types of insurance policy prevent potential disputes that can arise between the loan provider and the borrower. It also prevent s the loan provider from incurring potential loss that can result from death or permanent disability of the borrower.
- To the family of the borrower:
It prevents the auction of the borrower’s possessions in case of misfortune (death or total and permanent disability). This insurance policy also allows people to request loan, invest in business and makes profit because they do all that with no pressure.