Single Premium Credit Life Insurance is a life policy designed to pay off a borrower’s debt if that borrower dies before the loan is fully paid back to the banks, financial institutions. In the event of the untimely demise (Death, Total Permanent Disability) pat of the borrower, Credit Life Insurance will ensure that title to the purchase will be transferred free and clear to beneficiaries.
|Age limit for Insured||Between (18) and (64) years old.
(The customer who is 64 years old can buy only 1 year’s term of this insurance.)
|Insurance Term||(1) to (2) years.
|Insurable sum||(100,000) to (100,000,000) MMK|
|Type of insurance||1. Decreasing Term Life Insurance
2. Fixed Team Life Insurance
|Payment premium type||Payment of premium must be made lump sum.|
|Premium rate||The single payment premium for this insurance is calculated based on sum insurance amount, insurance term and insured’s age.|
|Benefits of Single Premium Credit Life Insurance||1. Death Benefit
2. Total Permanent Disability Benefit
- For insurable sum MMK (100,000) to MMK (3,000,000), the insured needs to fill up the medical declaration form.
- For insurable sum above MMK (3,000,000), the insured needs to go under medical screening.
- Medical screening will be conducted by physicians from hospitals/clinics recognised by the Ministry of Health and Sports.
- The insurance company will incurred the expense of medical screening.
Advantages of Short Term Single Premium Credit Life Insurance
- This insurance will protect the loan lenders for their financial loss from non-repayment of loan due to the insured borrowers’ death/ total permanent disability from unexpected events.
- This insurance will protect the remaining families/ dependents not to burden the outstanding loan when the insured borrower dies/ total permanent disables from unexpected events.
- The insured can save his/her personal income tax on the premium payment for this insurance.
- Beneficiary refers to a natural person or a legal entity that is entitled to legal benefits from any death/ total permanent disability of the insured relating to the Life Insurance policy.
- The policyholder of Short Term Single Premium Credit Life Insurance must assign his/her benefits only to the loan lender; Bank, Financial Institution, Micro-finance Company as stated in the application.
If the insured dies / total permanent disables due to the following reasons, Death / TPD benefit is not permitted. Only the premium that has been already paid will be provided.
- Due to the self-inflicted injury caused intentionally
- Due to the commission of suicide
- Due to the use of narcotic drug
- Due to the use of hazardous drug
- Due to the commission of crime
- Due to a chronic disease which is omitted to be mentioned at the time of buying insurance.
Premium per 1,000,000 Sum Insured
Reducing Sum Insured
Fixed Sum Insured
Sum Insured (Reducing Type)
|Month||1 year||2 years|
|Month||1 year||2 years|