What is Credit Life Insurance Scheme?


Protect yourself against loan default in the event of borrower’s death, thus ensuring interest of both parties are kept intact.


Why Opt for ABSLI Credit Life Insurance Scheme?


An enduring quality that plays an instrumental role in organisational success is human touch. It also fosters customer loyalty. With ABSLI’s Credit Life Insurance scheme, you can establish yourself as a caring lender by showcasing that the family of the borrower neither need to go through the hassles of loan repayment nor forgo their dream in the event of an untoward incident.

  • Ensures asset doesn’t become a liability
  • Helps in brand building and enhancing customer loyalty
  • Safeguards you against non-repayment of loans
  • Shields the borrower’s family from the burden of loan repayment

Our Credit Life Insurance Scheme Products

ABSLI Group Asset Assure

Offers for all types of loan and wealth creation products

Suitable for HFCs, NBFCs and Banks, it offers:
  • Availability of coverage during moratorium period
  • Flexibility to choose from multiple plan options
  • Option to choose between level and variable cover
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ABSLI Group Bima Yojana ( Micro Insurance)

A credit protect product suitable for MFI loans

Suitable for MFIs, it offers:
  • Discount on premium younger life in case of joint cover
  • Level death benefit
  • Option to choose between single and joint cover
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ABSLI Group Smart Select

Offers protection of assets in case of death, disability or critical illness

Suitable for HFCs, NBFCs and Banks, it offers:
  • Avail cover up to 125% of the loan amount
  • Comprehensive coverage through multiple riders
  • Coverage for multiple co borrowers along with top up loan
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Benefits of ABSLI Credit Life Insurance Scheme

Affordable and low-cost product

A cost-effective and value-added product that shields you against potentially bigger losses in the event of non-repayment of loans.

Hassle-free claim settlement

A hassle-free claim settlement ensures you get the desired funds as and when required, which prevents you from booking losses.

Helps build customer loyalty

By safeguarding the borrower’s family from paying off loan’s liabilities in case of eventualities, it helps foster customer loyalty.

High non-medical cover limits

Get the desired coverage hassle-free without having to undergo any medical tests.

Option to cover up to 125% of the sum assured

A coverage up to 125% of the sum assured gives you a wider financial cushion in the event of a default due to a mishap suffered by the borrower.

Prevent losses

Safeguards interest of lending institutions including banks, NBFCs and HFCs, among others, and prevents them from incurring losses due to default in payment arising out of borrower’s death.

Tax benefits for customers

By offering tax benefits* under section 80C and 10(10D) of the Income Tax Act, 1961, it helps your customers lower their tax liability.

FAQs

  • What’s the need to buy credit life insurance scheme?

    Credit life insurance scheme primarily serves two purposes. It protects you, the lender, against non-repayment of loan in the event of the borrower’s death and also helps build customer loyalty.

  • What’s the eligibility criteria for buying credit life insurance scheme?

    Eligibility criteria differs across plans. Refer to plan brochures for more information.

  • Why should I cover loan for customers with credit life insurance scheme?

    Repayment of loan becomes a tall order for the family of the borrower in case of untoward incident. While hypothetically you can re-possess the asset in case of non-payment of outstanding loan EMI, the same doesn’t augur well for both parties.

    However, with credit life insurance scheme, the family of the borrower doesn’t have to undergo the hassle of loan repayment as the outstanding loan amount is paid through the policy. Thus, while on one hand it protects your loan from turning into a non-performing asset (NPA), on the other hand it ensures that the family of the borrower doesn’t forgo the asset created with the loan.

Why Choose ABSLI Credit Life Insurance Scheme?

Avail our credit life insurance scheme because of our:

  • Coverage to a wide range of portfolios
  • High group claim settlement ratio of 99.81% standing for FY 19-20
  • Presence in 18 states and 85+ locations
  • 2.77 million lives covered as of March 31, 2020

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* Benefits are subject to fulfilment of the other conditions of the respective sections prescribed therein. Tax laws are subject to amendments from time to time.

Disclaimer:

The Trade Logo “Aditya Birla Capital” Displayed Above Is Owned By ADITYA BIRLA MANAGEMENT CORPORATION PRIVATE LIMITED (Trademark Owner) And Used By ADITYA BIRLA SUN LIFE INSURANCE COMPANY LIMITED (ABSLI) under the License.”

ABSLI Group Asset Assure plan is underwritten by Aditya Birla Sun Life Insurance Company Limited (ABSLI). This is a non-linked, non-participating traditional group insurance plan. ABSLI reserves the right to recover levies such as GST levied by the authorities on insurance transactions. If there be any additional levies, they too will be recovered from you. For further details, please refer to the policy contract. Tax benefits are subject to changes in the tax laws. For more details on risk factors terms and conditions, please read the sales brochure carefully before concluding the sale.

ABSLI Group Bima Yojana plan is underwritten by Aditya Birla Sun Life Insurance Company Limited (ABSLI). This is a non-linked non-participating group micro insurance term plan. All terms & conditions are guaranteed throughout the policy term. GST will be added (extra) to your premium and levied as per extant tax laws. For further details please refer to the policy contract. Tax benefits are subject to changes in the tax laws. For more details on risk factors terms and conditions, please read the sales brochure carefully before concluding the sale.

ABSLI Group Smart Select plan is underwritten by Aditya Birla Sun Life Insurance Company Limited (ABSLI). This is a non-linked non – participating Group Credit Life Insurance Plan. ABSLI reserves the right to recover levies such as the GST levied by the authorities on insurance transactions. If there be any additional levies, they too will be recovered from you. For further details, please refer to the policy contract. Tax benefits are subject to changes in the tax laws. For more details on risk factors terms and conditions, please read the sales brochure carefully before concluding the sale. Please refer the Exclusions Section in the sales brochure for details on Exclusions and the Terms & Conditions.

Registered Office: One World Centre Tower 1, 16th Floor, Jupiter Mill Compound, 841, Senapati Bapat Marg, Elphinstone Road, Mumbai - 400013. Call Centre: 1-800-270-7000 www.adityabirlasunlifeinsurance.com IRDAI Reg. No. 109 | CIN: U99999MH2000PLC128110 VER1/OCT/2018 UIN:109N045V03 | UIN: 109N123V01| UIN: 109N125V01 ADV/11/20-21/1601