LIFE ASSURANCE

Insurance Category: LIFE ASSURANCE

Insurance Sub-Category: GROUP LIFE
Insurance Policy: CREDIT LIFE ASSURANCE
Policy Summary
Credit life assurance is a life policy that pays out the amount owing to the Bank/
financier in the event of death or on total and permanent disability of the life
assured as a result of accident or natural illness. The policy ensures that, title to the
financed asset is transferred free and clear to beneficiaries.

Benefits of Credit Life Assurance

The borrower or beneficiary is protected from surrendering their assets to the
financier in the event of inability to service their loan following incapacity or
demise of the loanee.
The financier is safeguarded from loss of the lent funds

Types of Credit Life Assurance

1. Single Life Policy
Single Life Assurance covers one person only and pays out the insured value if that
person dies during the length of the policy or makes a claim under the terms of the
insurance policy in place.
2. Joint Life Policy
Joint Life Assurance covers two or more lives (for instance spouse or business partner)
usually on a first death basis. The insured value is paid out if any one of the parties dies
or is rendered permanently disabled during the length of the policy, after which the
policy terminates.

Main Features
Appended below are the policy features:-
Benefit Details of Cover
Death The insurance company shall pay the outstanding debt and
interest as at date of death due to natural or accidental
causes.
Total Permanent A member rendered totally and permanently incapacitated by
Disability injury or illness from his usual occupation, the insurance
company shall pay the principal loan outstanding and accrued
interest
Critical Illness An insured person being diagnosed for the first time with any
one of the following conditions; cancer, heart attack, stroke,
kidney failure, coronary artery bypass surgery, paraplegia, and
major organ transplant, the insurance company shall pay 100%
 of outstanding loan and interest up to the maximum amount
specified in the policy.
Retrenchment/Loss In the event of retrenchment or loss of income, the insurance
of Income company shall make payment of six (6) or nine (9) months
installments immediately upon retrenchment or proven loss of
income arising from damage/loss of financed asset/business
Free Cover Limit Refers to the maximum amount payable without need for
medical examination.
Extensions AIDS/HIV and pre-existing conditions
Political Violence and Terrorism
Enhanced age limit

Claim Documents from the Insured person

Notification
Original or certified copy of burial permit
Original or certified copy of death certificate
Copy of National ID
Loan amortization agreement/statement
Police Abstract Report for accidental death