Credit life insurance is a type of insurance policy that pays off a borrower’s outstanding debts in the event of their death. However, our Credit Life Product goes a step further because it is designed to provide financial security to borrowers and their families in the face of unforeseen events such as accidental death, disability, and critical illness. It offers various benefits to help ease the burden of loan repayment in such circumstances.

There are a lot of benefits to this product. Firstly, there is significant risk mitigation and enhanced loan Security. This product not only safeguards lenders against the risk of default in the event of the borrower’s death but also enhances overall loan security.

In the unfortunate event of the borrower’s demise before loan repayment completion, the insurance policy steps in to settle the outstanding balance. This ensures that lenders are protected from financial losses.

Secondly, the inclusion of critical illness and disability helps lenders mitigate risks associated with borrowers facing health concerns or disabilities. This coverage reduces the perceived risk for lenders, leading to increased confidence in approving loans for individuals who may otherwise face challenges due to health factors.

Benefits to borrowers include the provision of peace of mind where borrowers know that their outstanding loan balance will be covered in the event of their death, critical illness and disability leading to incapacity. This coverage ensures that borrowers can focus on their recovery without worrying about loan repayments.

Ultimately, this product is designed to safeguard Family Finances because, in the event of the borrower’s death, this product will ensure that the burden of loan repayment does not fall on the borrower’s family or dependents.

The enhanced Credit Life has several new features including, Accidental Death Cover. This Offers a lump sum cover on death, provided death occurred due to an accident. Further to that, we have added a Critical Illness Cover offering to pay off the outstanding loan balance in the event of a member being diagnosed with a specified illness. Another feature is Total Permanent Disability Cover offering to pay off outstanding loan balance in the event of an illness or accident that results in incapacity. And finally, this enhanced product has a Funeral Cover Solution.

Under this, the product commits to pay Lumpsum to beneficiaries of the borrower on death, cover can be extended to immediate family.

To qualify for the Credit Life Product, the main insured life must be a borrower. This means individuals taking out loans with credible institutions qualify for this product.

The Accidental Death Cover offers a one-time cash lump sum payment if the insured member dies within 14 days of a qualifying accident. An accident in our case means a single, unexpected, unforeseen, and unintentional incident which is not a symptom of disease or illness. This is a very crucial safeguard for borrowers and their beneficiaries against unexpected tragedies.

The Total Permanent Disability Cover provides financial assistance if the insured person becomes totally and permanently incapable of working due to injury or illness. Loss of limbs, sight, or paralysis are automatically included in this cover. The benefit will be paid as a lump sum equal to the loan outstanding balance at the date of claim.

The Group Critical Illness Cover provides a lump sum payment if a member is diagnosed with specified critical illnesses such as cancer, stroke, paralysis and/or permanent loss (of limbs, hearing, or sight), major organ transplant, coronary artery bypass graft, major organ transplant, Aorta Graft Surgery, coma, and myocardial infarction (First Heart Attack).

The Funeral Cover ensures that the dependents of the borrower receive a lump sum payment upon their death, helping to cover funeral expenses. It is a compassionate offering aimed at alleviating financial strain during a difficult time. The insured must be a borrower who is covered for funeral cover at the point of loan disbursement. The cover is selected by the bank/credit partner so that individual borrowers do not select the cover. Under this feature, the maximum cover is MK5m per life assured.

To access benefits under any of the covers, certain documentation is required. For example, a police report is necessary for an Accidental Death Cover, while a medical specialist’s report is needed for a Group Critical Illness Cover.

Our institution provides financial solutions that prioritize the welfare and security of our customers. The enhanced Credit Life Product speaks to our value of championing the customer. Our goal is to see them thrive by meeting both their long- and short-term goals. We want to together achieve mutually positive futures.

Credit assurance will be sold on a voluntary group basis, and participation cannot be made compulsory.

All borrowers to whom credit has been provided by the credit institutions will be eligible to join the Old Mutual credit assurance scheme, subject to the following requirements:

Entry ages:

• Minimum age is 18
• Maximum age is 65

Borrowers must have been continuously employed for at least 2 years prior to effecting cover, of which at least 1 year must have been with the current employer. This will only apply where retrenchment and disability (occupation definition) benefits are selected.