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.
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