What is the Credit Life Insurance Plan?
It is a term assurance plan that provides financial protection for property loan borrowers. Specifically, it helps settle outstanding loan amounts in case you eventually have a risk to life or total and permanent disability of the borrowers. It has 3 types of A, B, C.

"Credit Life just, Turn Liability into Asset"
Features of the plan
- Coverage period : 1 to 30 years;
- Payment mode : single and annually;
- Issued age : 18 to 60 years;
- Expired age : 65 years;
- Sum assured : reduce and flat;
- Primary beneficiary : Bank/MFI or Creditors;
- Contingent beneficiary : Specified by the Insured in application form.
Benefits of the plan
- Pay 100% of sum assured;
- Cover with total permanent disability (TPD).
Why Credit Life Insurance Plan?
- Name : Mr. Camroth,30 years old
- Loan amount : 5,000 USD with interest rate of 8% p.a.
- Loan period : 5 years, starting from 1st January 2019
- Primary beneficiary : Bank
- Contingent beneficiary : Specified in application form.
Illustrated Example:
A Customer of a bank has taken a housing loan as following:
- Pay the Percentage of Premium Collected of sum assured;
- Cover with total permanent disability (TPD);
- Cover diagnose of Cancer, Heart Attack, Kidney Failure, Stroke and End Stage Liver Failure.
Payment:
- 1. Installment per month (customer pays to the Bank) is $101.38 per month (amortization).
- 2. Credit life insurance plan A single premium (customer pays to the life insurance company, one time for 5 years) is $49, which is 0.98% to loan amount(49/5,000=0.98%).
- 3. Credit life insurance plan B single premium (customer pays to the life insurance company, one time for 5 years) is $146, which is 2.92% to loan amount (146/5,000=2.92%).
- 4. Credit life insurance plan C annual premium (customer pays to the life insurance company, annually) is $19 per year.
Graph illustration

Assumption (after 12th installment)::
With the Credit Life Insurance Plan of Camlife:
– If Mr. Camroth got TPD/dies on 1st January 2020, the Company would pay
1. Credit life insurance plan A: the $4,225 which $4,152.80 paid to the Bank and left-over amount of $72.20 paid to Insured’s family.
2. Credit life insurance plan B & C: the $5,000 which $4,152.80 paid to the Bank and left-over amount of $847.20 paid to Insured’s family.
– If Mr. Camroth wants to pay entire remaining outstanding loan by 1st January 2020 to the bank, he must pay the amount of USD $4,152.80. Then he has 2 options with the life insurance policy.
1. He can keep the policy in-force until the expiry date. If he gets death/tpd, the Company shall pay:
a. Credit life insurance plan A: the RSA amount (based on our table) to his family directly.
b. Credit life insurance plan B & C: the $5,000 to his family directly.
2. He can surrender (terminate) policy:
a. Credit life insurance plan A: by receiving amount of $19 (based on our SV table).
b. Credit life insurance plan B: by receiving amount of $40 (based on our SV table).
c. Credit life insurance plan C: don’t have the surrender value.
This is just an illustrated example, not a contract.