This is pure cover: it pays your family if something happens during the term, and there is no amount paid back at the end. Credit Protection Plan is a non-profit participating life insurance plan designed to protect borrowers and lenders from outstanding loan obligations. This product is offered to banks, MFIs, cooperatives, finance companies or other institutions in conjunction with consumer credit. If the borrower cannot repay because of certain specified events, Sun Nepal Life pays the lending institution the outstanding loan.
What's included
Key highlights
- Protects outstanding loan — reduces default risk
- Institutional / group insurance solution
Features
- Protects borrower and lender against outstanding loan obligations
- Designed for banks, MFIs, cooperatives and finance companies
- Pays lending institution if borrower cannot repay due to specified events
- Non-profit participating institutional/group cover
- Offered as institutional (group) credit insurance
What happens in each case
Each plan pays out differently depending on what happens during the term. These are the situations that matter for this kind of plan.
If the insured passes away during the term
This plan states: Outstanding loan balance payable to the lending institution
If the policy runs to maturity
There is no maturity payout. The premium buys cover for the term, not savings.
Typical for term plans — confirm the exact terms in the brochure.
Optional riders
No optional riders are attached to this plan.
Loan & liquidity
- Policy loan
- Not available
Questions about this plan
What kind of plan is Credit Protection Plan?
Credit Protection Plan from Sun Nepal Life Insurance is a term plan that is pure life cover for a fixed period, with no savings element, and suits people protecting family income or a loan.
What is paid if the insured passes away during the term?
Outstanding loan balance payable to the lending institution
Premium
Quote on request