 This borrower-pay program protects your borrowers from unexpected financial difficulties and your institution from potential loan losses in the event of a Disability or Death.
If your borrower were to become disabled and unable to work, how would they make their next loan payment? Most borrowers do not have a substantial savings to draw from. Credit Disability coverage would make the monthly payments for as long as your borrower was disabled or until the loan was paid off.
If your borrower were to pass away, what would happen to the loan payments? Would a spouse be able to cover the monthly payments now that the household income has been reduced? Would the loan become a burden on the family? Would the loan become a collection issue? Credit Life coverage would pay off your borrower's loan in the event of a death and the family would keep the collateral free and clear.
Premiums are collected based on the outstanding loan balance at the end of the month and decrease along with the loan balance.
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