CREDIT INSURANCE

A plan to protect those in debt to finance institutions. Includes: Collective Credit Protection Ekawaktu Life Insurance, Collective Monthly Installment Credit Life Insurance, and Collective Annuity Monthly Installment Credit Life Insurance.

Credit is a fact of almost everyone's business and/or personal life, providing the funds to support business activity and capital expenditure, and making personal investment possible for individuals investing in projects such as home ownership or renovation.

Cash borrowing through credit facilities is a vital part our daily lives, and as long as the loan is repaid within the defined time scale, credit presents no problem. If unforeseen circumstances intervene, however, such as an early death, the responsibility to pay back the debt can become a crushing burden on those left alive.

The AJB Bumiputera 1912 "Kredit" plan is designed to provide protection for those in debt to finance institutions. This protection is offered through three different products: the "Ekawaktu" Life Insurance, Collective Monthly Installment Credit Life, and Annuity Installment Credit Life.

• Collective Credit Protection Ekawaktu Life Insurance. This insurance provides insurance/compensation at the initial loan value if the insurance participant (debtor) passes away during the insurance term. This insurance is used as protection for productive credit (business credit) since the credit balance fluctuates during the credit agreement term.

• Collective Monthly Installment Credit Life Insurance. This insurance provides insurance/compensation equal to the remaining loan, decreasing each month and decreasing proportionally if the insurance participant (debtor) passes away during insurance period. This insurance program can be used as protection for consumptive credit since the remaining credit decreases each month.

• Collective Annuity Monthly Installment Credit Life Insurance. This provides insurance/compensation equal to the remaining loan, decreasing each month with the decrease based on the amount of installment depending on the loan interest if the insurance participant (debtor) passes away during the insurance period. This program is used to meet protection needs for credit like Home Ownership Credit (KPR) since the credit remaining decreases each month depending on the credit interest.

The amount of Insurance Coverage (compensation) for respective participants is defined on the basis of the total loan (credit) agreed by both parties (creditor and debtor) or provided by the creditor.

Policy and Certificate

A Credit Life Insurance Program Policy is issued for 1 (one) individual, for the respective type of credit insurance. The Insurance participant (debtor) obtains a certificate as evidence that the related person has obtained insurance protection.

Back to Top