Debit life Insurance (Loan Insurance)
Debit life Insurance or loan insurance is wide applicable today, because many people take loans from banks or credit institutes to buy or construct a home or for many other purposes. If borrower dies and his/her family is not able to pay installments, bank may use guarantee bond to take its capital. This will encounter the family of borrower with great problems. To remove such a problem, borrowers can pay a small premium to advantage of bank or lender institute to debit life insurance. In such a case, the rest installments will be paid to the bank or lender institute totally from the date of death, if borrower dies.
The main coverage of this insurance policy includes accidental death. Sub-covers such as disability (exemption of premium) can be added to life insurance leftover debt.