Group Credit Life insurance: protect your loans and business
Protect the business of lending companies, banks, real estate, and memorial parks from unpaid loans due to the untimely demise of borrowers.
What is Group Credit Life insurance?
Group Credit Life insurance is a type of loan protection insurance designed for groups of borrowers, typically offered by lending institutions, such as banks and credit unions. This coverage ensures that in the event of a borrower's death, the outstanding loan balance is paid off.
It’s an essential credit insurance for businesses that provides business loan protection to lenders and gives peace of mind to borrowers.
Plan key benefits and features
Protection for lenders: Ensures that outstanding loan balances are paid off in the event of a borrower’s death to reduce the risk of financial loss for lending institutions.
Peace of mind for borrowers: Provides security to borrowers' families to ensure that their debts are settled without burdening their loved ones.
Flexible coverage options: Can be tailored to meet the needs of different businesses, from banks to credit unions. This offers coverage for both individual and group borrowers.
Affordable premiums: Typically more cost-effective than individual life insurance policies. This makes it a practical solution for businesses looking to provide added protection for their clients.
Easy claims process: Simplifies the claims process for both lenders and beneficiaries to ensure the timely settlement of loan balances.
Boosts business reputation: Offering business loan protection enhances your company's credibility by showing clients that their financial well-being is a priority.
What does Group Credit Life insurance cover?
| Coverage type | Description |
| Death coverage | Pays off the remaining loan balance if the borrower passes away, protecting both the lender and the borrower’s family. |
| Total permanent disability | Covers the outstanding loan amount if the borrower becomes permanently disabled and is unable to continue repaying the loan. |
| Accidental death or disability | Provides coverage in case the borrower’s death or disability is caused by an accident. |
| Loan balance coverage | Ensures the full loan balance is covered, up to the policy limit, regardless of the remaining loan term or amount. |
| Flexible policy term | Coverage can be customized based on the loan term, ensuring the insurance matches the repayment period of the business loan. |
Optional benefits
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Comprehensive accident protection Your borrowers will have the capability to pay off their loans even if disability, loss of body parts or death due to an accident occurs. Terms and conditions apply.
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Total and permanent disability benefit Assurance of loan repayment even if the borrower becomes totally and permanently disabled. Terms and conditions apply.
Who is eligible for this program?
- Borrowers of ages 18 to 64 years old
- Groups of at least 10 debtors
How does the claim process work?
Filing a claim for Group Credit Life insurance is simple and straightforward. To begin, visit the Manulife claims page for more details and to submit your claim online.
Required documents:
Claimant's statement specific to the type of claim (e.g., death or disability).
Valid Government-Issued ID of the claimant.
For death claims: Certified death certificate and proof of loan balance.
For disability claims: Medical reports and a physician's statement confirming total disability.
For accidental claims: Accident report and medical documents related to the injury.
Timeline:
Once all required documents are submitted, your claim will be processed within 7 working days.
Frequently asked questions
Loan protection insurance is not legally required in the Philippines, but credit insurance for businesses is often mandatory for lenders to ensure the loan balance is covered in case of borrower death. Many lending institutions require it as a condition for approving loans.
In creditors group insurance, the beneficiary is typically the lender or creditor, who receives the insurance payout to cover the remaining loan balance in the event of the borrower’s death.
If the borrower passes away before repaying the loan, group credit life insurance pays off the outstanding balance. This protects both the lender and the borrower’s family from debt.
Group Credit Life insurance covers various types of loans, including business loan protection for business loans, personal loans, mortgage loans, and even salary loans. It ensures that the remaining debt is paid off in case of the borrower’s death.
The cost of Group Credit Life insurance depends on factors like the loan amount, the number of borrowers, and the type of loan. Premiums are generally calculated based on these factors and the agreement between the lender and Manulife.
Premiums for Group Credit Life insurance are typically calculated based on the total loan amount, the number of borrowers, and the age and health status of the insured group members. The lender or business can choose the level of coverage, and premiums are adjusted accordingly to provide adequate protection while maintaining affordability. Group discounts may also apply based on the size of the group and the chosen coverage options.
Want to learn more about Group Credit Life?
Talk to a financial advisor today