The purpose Group Credit assurance is to protect the creditor from financial liabilities arising from demise or disability of borrowers
> This Policy is designed to cover outstanding loans on the borrower’s death and/ or total permanent disability.
> Defaults are not covered.
> The financial institution is the policyholder and pays the premium

 


Pioneer Assurance Group Credit assurance policies are divided into; Annual Guaranteed and Open Policy.

Annual Guaranteed Group Credit Policy

It is a credit life policy designed for creditors who pay a one-off premium at the beginning of the insurance period irrespective of the
changes in the loan balance during the year.

Features

  • The insurance covers members between age 18 and 75 years old with outstanding loans against death or total permanent disability.
  • The premium is computed by taking into account each individual loan amount and the repayment period and therefore the premium is paid once for each individual loan.
  • In this plan, the members can participate in meeting insurance costs related to their loans, in other words, the plan has a member pay option
  • Covers shares at time of death during insurance period (optional)


Benefits of Annual Guaranteed Group Credit policies

  • The Financial Institution to maintain credit service to all members
  • The Financial institution to reduce bad debts arising from premature death or disabilities of borrowers
  • To reduce the number of families left with nothing as a result of outstanding debts
  • To repay all Loan balances on death or total permanent disability of an insured member.
  • The Financial Institution to have effective budget because the premium is guaranteed on annual basis regardless of the change in loan balances

Open Credit Life Policy

  • It is a credit life policy designed for Institutions who pay a premium based on the outstanding individual member loan balances and the duration of the loan.

Features

  • The insurance covers members between age 18 and 75 years old with outstanding loans against death or total permanent disability.
  • The premium is computed by taking into account each individual loan amount and the repayment period and therefore the premium is paid once for each individual loan.
  • In this plan, the members can participate in meeting insurance costs related to their loans, in other words, the plan has a member pay option
  • Covers shares at time of death during insurance period (optional)