- The purpose of credit life insurance is to cushion/protect the creditor from financial liabilities arising from demise or disability of borrowers
- Group creditor policies are designed to cover the outstanding loans on the borrower’s Death and/ or Permanent Total Disability.
- Arrears are not covered.
- The lender is the policyholder and pays the premium
- The cover helps policyholder to maintain credit service to all members by reducing bad debts and the number of families left with nothing as a result of outstanding debts (loan)