Loan and Life
A group term insurance plan is known as a loan and life suraksha. The purpose of this plan is to protect the family members of a borrower, in case the borrower’s life is threatened by sudden demise. With this product, the family of the borrower won’t be liable to repay the loan after his death. It is a unique opportunity to maintain long-term relationships with your customers. Learn more about loan and life suraksha.
A loan and life suraksha plan has different benefits and features. It offers flexibility in adjusting the loan amount and the assured sum of the policy. This plan also gives you the option to increase the insurance cover and/or loan amount. It also gives you the flexibility of a moratorium period if you’re unable to make your payments. You can choose whether or not you’d like to increase your loan and life insurance coverage, according to your needs.
A loan and life insurance policy may be advantageous for a borrower if it allows him to make payments on his insurance premiums. While borrowing for insurance premiums would be unfavorable for the insured, it might be a beneficial option for the insurance company. After all, a loan would require collateral and interest charges. But the loan would be paid back using after-tax income, so it would seem to benefit the insurer.
Another way to get a loan and life insurance policy is by naming your lender as a beneficiary of the life insurance policy. It is not recommended, however, as most life insurance plans will maintain a consistent death benefit amount over the duration of the contract. If the borrower dies before making the final payment on the loan, the life insurance company will receive the entire loan amount. The lender is under no obligation to give the money back to the beneficiary.
The terms of the loan and insurance agreement form a set of constants that are stored in a computer memory 122. The constants in the computer memory define ranges of cash values, loan principals, and death benefits. The employer and employee data also serve as inputs to the computer processor 120. Once the computer has a complete picture of the employee and employer’s financial circumstances, the program may calculate the terms of a loan and life insurance policy.