Creditors wish to be assured of full loan repayment in case of death of a borrower and avoid costs of litigation & loss of opportunity income.
This is a special form of group term insurance, which is issued to acreditor to provide for coverage to his debtors in the amount of their out standing loan payable to the creditor in the event of the debtor’s untimely death before the loans are repaid.

Thus, the creditor is spared from seeking payment from the debtor’s family or repossessing the unpaid goods. From the debtor’s standpoint, the plan affords him peace of mind and makes it easier for him to secure endorsers or co-signers when required. Coverage depends on the term of the loan.

Group Credit life Insurance (micro)

Benefit. The amount of insurance is payable to the Creditor in the event the Insured/Debtor dies due to natural or accidental causes. Amount of Insurance. An eligible Debtor shall be insured for an amount equal to his outstanding indebtedness.

Eligibility Requirements. All Debtors who are 18 to 60 years old(age requirement may also vary depending on the prospective client) shall be eligible for insurance.

Underwriting Requirements. The insurance of all eligible Debtors under the Master Policy shall commence upon receipt by the Company of the GCLI application forms, monthly abstract of Debtors and the first full premium stated there in.

ParticipationRequirements. Participation of all present and future eligible Debtors is required to establish and continue this plan.

BasicAdministrationProcedure

Beneficial Life Insurance Co., Inc. shall be provided by the Creditor with a list of its new and existing Debtors, stating their names, ages, balances of account and the a mortization period. Based on the above, Beneficial Life Insurance Co.,Inc. shall process the same and bill the Credit or accordingly.

Coverage shall take effect upon receipt of payment. Subsequent premium billings shall be based on the actual balance of indebtedness due as the 1st of each following month.

Markets for this product line are banks, credit unions, coops financing companies, savings and loans associations, appliance, and automobile dealers.

Implementation Guidelines

1. Applicants must accomplish Health Statement Form. All accomplished Health Statements must be forwarded to the Head Office together with a list.

2. Any amount of coverage that will be granted without proof of insurability ( No Evidence Limit)has to be pre-approved by the company.

3. For coverage over P50,000.00 the application form shall be subject for underwriting and approval.

4. A list of insured according to the number of debtor’s certificate issued must be sent to Beneficial Life InsuranceCo. ,Inc. every month together with the company’s copy of the debtor’s certificate/application.

5. Premium remittances(deposit slips) corresponding to the amount of premiums paid for the number of certificates issued must accompany the list of insured borrowers.

6. In the event of claim, Beneficial Life Insurance. Co.,Inc. shall pay to the Bank the amount, which shall not exceed the loan at the time of the death of the debtor.

Age Eligibility
– All Debtors who are 18 to 60 years old (age requirement may also vary depending on the prospective client)shall be eligible for insurance.
– Age & Underwriting requirements depends on the guidelines of each account

Amount of Insurance
– An eligible Debtor shall be insured for an amount equal to his outstanding indebtedness.

Underwriting Requirements
– The insurance of all eligible Debtors under the Master Policy shall commence upon receipt by the Company of the monthly abstract of Debtors and the first full premium stated there in.

Group Mortgage Redemption Insurance

Group Mortgage Redemption Insurance(MRI) is a yearly decreasing term plan. It is recommended for underwriting mortgage loans.

AMOUNT OF INSURANCE
A Mortgagor/Debtor shall be insured during the first year for an amount initially equal to the a mount of indebtedness as of the effective date of cover age under this plan. The face amount decreases each year according to the outstanding balance of the loan.

COST OF INSURANCE
The premium rate per P1,000.00 of the insurance is based on average age and the group’s risk profile applicable to standard risks. It is subject to adjustments on the basis of medical findings or occupational risks of an individual borrower.

ELIGIBILITY REQUIREMENT
All present and future Mortgagors/Debtors who are at least 20 years old but not over 65 shall be eligible for insurance. Incase of joint purchase, only the first signer is eigible. In case of a conjugal purchase, only the husband is eligible.

EFFECTIVE DATE OF COVERAGE
The insurance coverage of all eligible Mortgagors/Debtors under the Master Policy shall commence immediately upon receipt by the Company of the individual application forms and the first full premium stated here in; after which a Certificate of Insurance shall be issued and delivered to the Mortgagor/Debtor.

PARTICIPATING REQUIREMENTS
The participation of all present and future Mortgagors/Debtors is required to establish and continue this plan. In no case, however, must the number of insureds be less than the minimum of 50 lives at inception or at anyone time.

Age Eligibility
– All present and future Mortgagors/Debtors who are at least 18 years old but not over 65 shall be eligible for insurance. Incase of joint purchase, only the first signer is eligible. In case of a conjugal purchase, only the husband is eligible.

Cost of Insurance
– The premium rate per P1,000.00 of the insurance is based on average age and the group’s risk-profile applicable to standard risks. It is subject to adjustment son the basis of medical
findings or occupational risks of an individual borrower.
– Depending on the approval of the account

Date of Coverage
– The insurance coverage of all eligible Mortgagors/Debtors under the Master Policy shall commence immediately upon receipt by the Company of the individual application forms and the first full
premium stated here in; after which a Certificate of Insurance shall be issued and delivered to the Mortgagor/Debtor.
-Depending on the approval of the account.