Credit Life Insurance Plan
Credit Life Insurance Plan is a form of insurance designed to pay off an individual’s loan balance in the event of their untimely death. This policy ensures that the borrower’s family or beneficiaries will not be left responsible for repaying the outstanding loan, providing financial relief and peace of mind. Typically, the coverage amount is directly tied to the outstanding loan balance, and the policy expires once the loan is fully paid off.
Maximum Insurable Amount
The Maximum Insurable amount under CLIP is ₱322,500.00, not to exceed 500 times the daily minimum wage rate of non-agricultural workers in Metro Manila.
Requirement for Coverage
- DEBTORS must be a member of PBC-MBA
- 18 years old but not more than 70 years old at the first loan release date.
CLIP Benefit
Upon the death or Total and Permanent Disability (TPD) of the Insured DEBTOR, PBC-MBA will pay the Loan Amount insured during the period of coverage in the following manner:
- The amount of benefit will be paid to the outstanding loan balance of the Insured DEBTOR, excluding interest charges. This amount is payable to the CREDITOR.
- The remaining balance after deducting from the insured Loan Amount stated in (a) is payable to the secondary beneficiary/ies
Termination of Individual Coverage
The insurance coverage shall automatically terminate under the following conditions:
- upon the death or TPD of the Insured DEBTOR
- upon the expiration of the term of the loan
- when the Insured DEBTOR reaches age seventy-five (75)
- upon full payment of the loan
Unearned Premium
- If the Insured DEBTOR decides to fully pay the outstanding loan balance before the expiration of the term of the loan, the unearned portion of the premium net of charges shall be refunded to the Insured DEBTOR.
Premium
- One-time premium of ₱9.60 per thousand of the original Loan Amount per year or ₱0.80 per month.
Frequently Asked Questions
- CLIP is insurance on the life of a DEBTOR in connection with a specific loan to provide payment equivalent to the insured Loan Amount
- The Maximum Insurable amount under CLIP is ₱322,500.00, not to exceed 500 times the daily minimum wage rate of non-agricultural workers in Metro Manila.
- Upon the death or Total and Permanent Disability (TPD) of the Insured DEBTOR, PBC-MBA will pay the Loan Amount insured during the period of coverage in the following manner:
- The amount of benefit will be paid to the outstanding loan balance of the Insured DEBTOR, excluding interest charges. This amount is payable to the CREDITOR.
- The remaining balance after deducting from the insured Loan Amount stated in (a) is payable to the secondary beneficiary/ies
- Amount of loan /₱1,000.00 x ₱0.80 x no. of months shall be deducted upfront from the loan proceeds
- Loan Ledger from the financial Institution with which the member has a loan
- Death Certificate