FREQUENTLY ASKED QUESTIONS on CREDIT REDEMPTION INSURANCE OR CRIWHAT IS CREDIT REDEMPTION INSURANCE OR CRI?
The Credit Redemption Insurance or CRI is a special form of insurance under which the lives of the borrowers who have loans with the Creditor are insured. In the event of death of an insured borrower, the Insurance Company will pay the Creditor, in this case, AFPSLAI, the amount equivalent to the programmed loan balance of said borrower, assuming that all installments are paid on their due dates.
Banks and other SLAIs and lending institutions are already adopting the CRI.
WHO ARE ELIGIBLE FOR COVERAGE?
All present and future bonafide member-borrowers of AFPSLAI for Salary/Pension Loan, Multi-Purpose Loan, Emergency Loan, and Personal Loan, who, at the inception of the coverage, are at least 18 years old but have not attained their 80th birthday, have made representation in their insurance application that they are in good health and are actively doing the normal activities of life.
WHAT ARE THE BENEFITS/ ADVANTAGES OF HAVING A CRI?
- Promotes peace of mind because in case of death of the borrower, the outstanding balance of the loan will be paid by the insurer.
- Provides protection from losing savings, retirement benefits or other monetary benefits due to the family of the borrower in case of death.
- The Insurance Company will pay the beneficiary/ies P25,000 as Burial Benefit.
- A borrower with CRI coverage is given a rebate on his/her gross premium
The insurance coverage of an insured loan borrower will automatically terminate on the earliest of the following dates:
- The date the Policy terminates or the maturity date of the loan applied for.
- The date the borrower reaches his/her 80th birthday.
- The date the premium is not remitted by AFPSLAI to the Insurance Company beyond the grace period.
- The date the borrower’s loan is transferred to another person.
- The date the borrower’s loan is transferred to a creditor other than the Policy-holder named herein.
For expediency, AFPSLAI will facilitate the claiming of the burial benefit which will be given to the declared beneficiaries.
The surviving heir/s will have to submit to AFPSLAI the following documents:
- Original or Certified True Copy of Death Certificate
- Birth Certificate/Baptismal Certificate of the insured
- Medical Certificate from attending physician at time of death
- Complete Medical Records
- Specimen Signature
- Loan Voucher or Group Credit Life Application Form
- If death is due to accident - Police Report and Autopsy Report (if any)