We must explain to you how all seds this mistakens idea off denouncing pleasures and praising pain was born and I will give you a completed accounts off the system and expound.
Credit Life Insurance is a form of insurance specifically designed for institutions that grant credit to clients. It provides a cost effective way to ensure that outstanding debt is settled should a client die or become disabled during the period that he/she accessed credit or loan facilities from the institution.
Metro Life Tanzania provides life cover, permanent disability cover and temporary disability cover for the following forms of outstanding debt:
This benefit protects the credit provider against the risk of the loan holder dying while there is still credit outstanding. The benefit can be structured to pay out any of the following to the credit provider should the loan holder die:
The most appropriate type of benefit will depend on the type of loan being covered. Credit Life is a cost effective way for credit providers to manage the risk of default in the event of the loan holder’s death.
Benefit Type | Lump sum payment |
---|---|
Loans Covered |
|
Optional Benefits |
The following benefits can be added to Credit Life:
|
Cover |
Cover will continue until the earliest of the following:
|
This is a lump sum benefit paid out to the credit provider if the loan holder becomes permanently disabled and is no longer able to perform their job or a similar job. The benefit amount will be the same as covered by the Credit Life Benefit (e.g. outstanding balance, original loan amount etc.)
It is a cost effective way for credit providers to manage the risk of default in the event that the loan holder becomes disabled and is no longer able to work and earn an income. By adding the Permanent & Total Disability Benefit to Credit Life the credit provider is comprehensively covered against the major life risks that often cause default.
Benefit Type | Lump sum payment to the credit provider |
---|---|
Disability Definition | In simple terms, the member is regarded as disabled if they can no longer do their own job or a similar job. |
Waiting Period | The claim will be paid after a waiting period of 6 months from the date of disability. The purpose of this period is to assess if the disability is permanent and total. |