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    "Turn Liability into Asset"


1. 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.

2. 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.

3. Benefits of the plan    

- Pay 100% of sum assured;

- Cover with total permanent disability (TPD).

4. Why Credit Life Insurance Plan?

- You are a father/mother responsible for your family;

- Turn liability into asset;

- Your house is safe even if you are not around;

- Duration of cover is flexible;

- Your dream still continue successfully;

- Very affordable price.

Illustrated Example:

A Customer of a bank has taken a housing loan as following:

- Name : Mr. Camroth,35 years old
- Loan amount  
: 50,000 USD with interest rate of 8% p.a.
- Loan period 
: 10 years,  starting from 1st January 2017
- Primary beneficiary
: Bank
- Contingent beneficiary : Specified in application form.

Payment:

1. Installment per month (customer pays to the Bank) is $606.64 per month (amortization).

2. Credit life insurance plan A single premium (customer pays to the life insurance company, one time for 10 years) is $946, which is 1.89% to loan amount(946/50,000=1.89%).

3. Credit life insurance plan B single premium (customer pays to the life insurance company, one time for 10 years) is $1,655, which is 3.31% to loan amount (1,655/50,000=3.31%).

4. Credit life insurance plan C annual premium (customer pays to the life insurance company, annually) is $199 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 2018, the Company would pay:

1. Credit life insurance plan A: the $47,250 which $46,597.38 paid to the Bank and left-over amount of $652.62 paid to Insured’s family.

2. Credit life insurance plan B & C: the $50,000 which $46,597.38 paid to the Bank and left-over amount of $3,402.62 paid to Insured’s family.

- If Mr. Camroth wants to pay entire remaining outstanding loan by 1st January 2018 to the bank, he must pay the amount of USD $46,597.38. 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 $50,000 to his family directly.

2. He can surrender (terminate) policy:

a. Credit life insurance plan A: by receiving amount of $546.5 (based on our SV table).

b. Credit life insurance plan B: by receiving amount of $1,035.5 (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.