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Short Term Single Premium Credit Life Insurance

Introduction

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 InsuredBetween (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 insurance1. Decreasing Term Life Insurance
2. Fixed Team Life Insurance
Payment premium typePayment of premium must be made lump sum.
Premium rateThe 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 Insurance1. Death Benefit
2. Total Permanent Disability Benefit

Medical Examination

  • 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

  • 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.

Exclusions

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.

  1. Due to the self-inflicted injury caused intentionally
  2. Due to the commission of suicide
  3. Due to the use of narcotic drug
  4. Due to the use of hazardous drug
  5. Due to the commission of crime
  6. 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

 Policy term
Age12
183,9006,900
204,2007,300
254,9008,700
305,90010,700
357,20013,200
408,40015,400
459,60017,700
5011,60021,600
5515,10028,500
6022,20042,300
6431,800-

Fixed Sum Insured

 Policy term
Age12
185,0009,000
205,4009,800
256,60012,300
308,60016,100
3510,80020,500
4013,00024,500
4515,10028,700
5018,60035,800
5525,00048,500
6037,60073,800
6454,700-

Sum Insured (Reducing Type)

 Policy Term
Month1 year2 years
11,000,0001,000,000
2921,200963,000
3841,700925,600
4761,300887,900
5680,100849,800
6598,100811,300
7515,200772,400
8431,500733,100
9347,000693,400
10261,500653,300
11175,200612,800
1288,000517,800
 Policy Term
Month1 year2 years
13-530,500
14-488,700
15-446,500
16-403,900
17-360,800
18-317,300
19-273,300
20-228,900
21-184,000
22-138,700
23-92,900
24-46,700