Benefit to the Policyholder/financial Institution – Group Credit Life Secure Plan is a product that ensures that in case of death of the borrower amount of loan outstanding (as per the option chosen) is paid out by Max Life Insurance Company Limited.
Benefit to the loan borrower – In case of member's demise, the family does not have to surrender / forgo the asset since loan will be paid out for the amount of sum insured by Max Life Insurance Company Limited.
Please note that the benefit is payable only in the event of death during the period of coverage and no Disability cover is provided under this policy.
The Benefits at a glance
- Death Benefit and Options On happening of the death by any cause (natural & accidental), the Company shall pay you as per the option as chosen by the member at the inception. The death benefit options are as follows
- Decreasing Cover Death Option in accordance with the outstanding sum assured schedule as set at the commencement of the contract.
Cover during the moratorium period is also available where the loan monthly installments begin after a defined moratorium period and therefore the Sum Assured is level till the end of the moratorium period and reduces thereafter as per the schedule as set at the commencement of the contract.
- Level Cover Death Option Benefit formulae would be chosen in such a way that a minimum sum assured of Rs. 50,000 per member would be ensured at inception.
- Moratorium Option Moratorium period option is available with Decreasing Cover Death Option only. Moratorium period may be chosen in multiples of 3(three) months. Minimum moratorium period allowed is 3(three) months.
The Sum Assured is the initial amount of cover and will remain level throughout the moratorium period. After the moratorium period, Sum Assured will decrease during remainder of the coverage period (Total coverage term less moratorium period). The Sum Assured, as specified in the Certificate of Insurance will be payable irrespective of the actual loan outstanding.
This is a single premium term insurance plan. If an individual assured member surrenders his/ her cover due to any reason, a surrender value would be paid. The surrender value payable at any point of time during the period of cover will be as follows:
70% * Premiums received * (Unexpired risk period in months / Total Period of cover in months) * (Sum Assured applicable at time of Surrender1 / Sum Assured at inception)
1 As per the schedule mentioned in certificate of insurance at the outset