Credit Life Insurance provides financial protection for both the borrower and the bank in case of death, total permanent disability, critical illness during their loan term.

Housing Finance Bank customers that take out

• Mortgage loans
• Salary loans
• SME
• Business loans (Sole proprietors and self-employed)

• Death: Outstanding loan balance at the time of the borrower’s death.
• Permanent Total Disability (PTD): Outstanding loan balance in case the borrower becomes permanently unable to work.
• Critical Illness (optional): Covers life-threatening illnesses such as cancer, stroke, or heart attack.
• Retrenchment (optional): Provides temporary relief by covering up to 12 months of loan instalments if the borrower loses employment involuntarily due to redundancy or restructuring.
• Funeral Benefit (optional): Offers a small cash payout to assist with funeral expenses, depending on the insurer.
• Catastrophe Coverage (optional): provides financial protection to borrowers and lenders in the event of major, unforeseen events that severely disrupt business operations or cause significant asset loss

Common exclusions include:

• Death or disability resulting from suicide (within the first 12 months)
• Pre-existing medical conditions not disclosed at the time of application
• Death or disability arising from war, terrorism, or criminal acts
• Termination due to misconduct, resignation, or retirement (for retrenchment cover)
• Drug or alcohol abuse-related conditions

• Coverage Limit: Equal to the approved loan amount or reducing balance
• Premium Payment: Paid once at loan disbursement for the entire loan term.
• Policy Term: Matches the loan repayment period.
• Beneficiary: Housing Finance Bank (to clear the loan), and any surplus (if applicable) goes to the borrower’s estate or nominated beneficiary.
• Optional Covers: Critical illness, retrenchment, or funeral benefit can be added depending on the product.

The premium rate depends on:

• The loan type and amount
• The loan tenure (duration)
• The borrower’s age and risk profile
• The type of credit product (personal, mortgage, or business)

The premium is usually a small percentage of the loan value and is paid once at loan approval.

• Duly completed Claim Form (provided by the bank)
• Medical Bills and notes
• Death Certificate or Medical Report (for death, disability/illness claims)
• Retrenchment Letter (for retrenchment claims)
• National ID of the deceased or claimant
• Police Report (if death resulted from an accident)
• Next of kin details and contact information

• The bank acknowledges the claim within 3 working days.
• The insurer will assess and process the claim within 10–15 working days after receiving all required documents.
• Payment is made directly to Housing Finance Bank to clear the outstanding loan
  balance.
• Any additional benefit (if applicable) is released to the nominated beneficiary.

• It protects your loved ones from financial stress in case of death or disability.
• It ensures your loan instalments are paid without burdening your estate.
• It provides temporary repayment relief if you lose your job due to retrenchment.
• It promotes financial peace of mind for you and your family.