Alyssa Lane
Group credit life insurance is a type of insurance that covers the lives of a bank's current and future debtors. It is usually sold to creditor institutions on a group basis to cover the lives of their borrowers. The bank is both the policyholder and the beneficiary of the life insurance. Group credit life insurance provides financial protection and reassurance to borrowers and their families.
| Characteristics | Values |
|---|---|
| Who is it sold to? | Creditor institutions on a group basis to cover the lives of their borrowers |
| Who is the policyholder and beneficiary? | The creditor institution, e.g. a bank |
| Who is it for? | Current and future debtors of the creditor institution |
| What does it cover? | The loan balance and purchases of high-end properties |
| What is the maximum amount covered? | 200 million yen |
| What happens if the borrower dies or becomes severely disabled? | The insurance money is paid to the bank and used to repay the borrower's outstanding loan amount |
| What does it provide? | Reassurance to the borrower and their family |
What You'll Learn
- Group credit life insurance is a special kind of group term insurance
- The bank is both the policyholder and the beneficiary
- The insurance money would be paid to the bank by the life insurance company
- The insurance provides reassurance to the borrower and their family
- It covers the lives of the bank's current and future debtors
Group credit life insurance is a special kind of group term insurance
Group credit life insurance insures up to 200 million yen ("Main Danshin"), covering the loan balance and providing coverage for the purchases of high-end properties. The borrower is required to enrol in the group credit life insurance policy specified by the bank. The insurance money would be paid to the bank by the life insurance company and then used to repay the customer's outstanding amount of the loan if the worst should happen to the borrower. This insurance system provides reassurance to the borrower, and also to his/her family.
Group credit life insurance is a comprehensive and flexible range of credit insurance products giving customers financial protection. It provides financial support to protect the interests of customers and companies, with a high level of coverage for card customers. It is an innovative product that protects a company's mortgages.
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The bank is both the policyholder and the beneficiary
Group credit life insurance is a special kind of group term insurance. A group credit life insurance policy is issued by an insurance company to a creditor institution, such as a bank, covering the lives of the bank's current and future debtors.
Unlike other group life plans, the bank is both the policyholder and the beneficiary of the life insurance. This means that if the worst should happen to the borrower, the insurance money will be paid to the bank by the insurance company and then used to repay the customer's outstanding amount of the loan. This insurance system provides reassurance to the borrower and their family.
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The insurance money would be paid to the bank by the life insurance company
Group credit life insurance is a special kind of group term insurance. It is usually sold to creditor institutions on a group basis to cover the lives of their borrowers. A group credit life insurance policy is issued by an insurance company to a creditor institution, such as a bank, covering the lives of the bank's current and future debtors.
Unlike other group life plans, the bank is both the policyholder and the beneficiary of the life insurance. This means that in the event of the death of the borrower, the insurance money would be paid to the bank by the life insurance company and then used to repay the customer's outstanding amount of the loan. This insurance system provides reassurance to the borrower, and also to his/her family.
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The insurance provides reassurance to the borrower and their family
Group credit life insurance is a special kind of group term insurance. It is usually sold to creditor institutions on a group basis to cover the lives of their borrowers. A group credit life insurance policy is issued by an insurance company to a creditor institution, such as a bank, covering the lives of the bank's current and future debtors. The bank is both the policyholder and the beneficiary of the life insurance.
SMBC Trust Bank's "Danshin (main contract)" covers the loan balance up to 200 million yen and provides coverage for the purchases of high-end properties. This type of insurance can provide peace of mind for borrowers and their families, knowing that their financial obligations will be taken care of in the event of an unexpected death or disability.
Group credit life insurance is a valuable tool for financial institutions to protect their interests and provide support to their customers. It offers a high level of coverage for card customers and can be tailored to suit the needs of businesses, from SMEs to large multinationals.
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It covers the lives of the bank's current and future debtors
Group credit life insurance is a special kind of group term insurance. It is usually sold to creditor institutions, such as banks, on a group basis to cover the lives of their borrowers. The bank is both the policyholder and the beneficiary of the life insurance.
Group credit life insurance insures the bank against the risk of its borrowers dying or becoming severely disabled before they have repaid their loans. If the worst should happen to the borrower, the insurance company will pay the bank the outstanding amount of the loan. This provides reassurance to the borrower and their family.
Group credit life insurance is a comprehensive and flexible product that offers financial protection to customers. It also protects the interests of the bank by ensuring that the loan will be repaid even if the borrower dies or becomes disabled.
SMBC Trust Bank offers a Group Credit Life Insurance policy called "Danshin", which covers loan balances of up to 200 million yen and provides coverage for the purchase of high-end properties.
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Frequently asked questions
Group credit life insurance is a special kind of group term insurance. It is issued by an insurance company to a creditor institution, such as a bank, to cover the lives of the bank's current and future debtors.
Unlike other group life plans, the bank is both the policyholder and the beneficiary of the life insurance.
If the worst should happen to the borrower, the insurance money will be paid to the bank by the insurance company and then used to repay the customer's outstanding amount of the loan.
