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.
Single Premium Credit Life Insurance
|Age limit for Insured||Between (18) and (62) years old.
(The customer who is 62 years old can buy only 3 years term of this insurance.)
|Insurance Term||(3) to (15) years.|
|Insurable sum||(1,000,000) to (300,000,000) MMK|
|Type of insurance||Decreasing Term Life Insurance type.|
|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
Reducing Sum Insured
- The insured of Single Premium Credit Life Insurance 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 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 Single Premium Credit Life Insurance must assign his/her
benefits only to the loan lender; Bank, Financial Institution, Microfinance Company as stated in the application.
Ineligibility for benefit
- If the insured dies due to the commission of suicide within a year from the date of insurance, Death Benefit is not permitted. Only the surrender value will be provided.
- The insured will not be entitled to Total Permanent Disability Benefit if it is caused by the following reasons within a year from the date of insurance. Only the surrender value will be provided.
- total permanent disability due to self-inflicted injury caused intentionally; and
- total permanent disability caused by unsuccessful suicide.