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Loan Protection Plan
This target financial institutions in the business of lending. We insure the loan amount with a life cover. In case of death of the borrower, we pay a benefit equal to the outstanding loan amount owed to the financial institution.
This policy does not pay for default of the loan.
Phoenix Life Loan Protector Policy, sometimes referred to as Credit Life in the insurance industry is designed for financial institutions which are in the business of lending and borrowing. This policy provides life, as well as disability benefits in the event of the insured death and/or permanent disablement respectively.
The policy becomes effective when a loan is disbursed to the borrower who is a customer of your financial institution. An insurance coverage is typically placed in conjunction with a specific loan obligation. The terms and conditions of the loan defines the basic nature of the coverage provided by this product/policy.
In the event of death, the outstanding loan balance is paid off from the life benefit of this policy to the financial institution (creditor). The disability benefit provides a monthly benefit equal to the loan’s monthly payment until the loan is fully paid off or the insured returns to work.
The life benefit provided under this policy always matches the outstanding loan balance. Coverage terminates when the loan obligation ceases (either at the end of the term of the loan, at early repayment of the loan or when death or disability benefits have been paid). The primary beneficiary of this policy is the financial institution.
Your institution will not have to worry about debts through death or disablement of a client who has an outstanding loan obligation.
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