Affinity Solution

An affinity group is a group consisting of persons who assemble together with a commonality of purpose or engaging in a common economic activity.

In Insurance parlance Non-employer-employee groups like employee welfare associations, borrowers of a bank, professional associations or societies may also be treated as affinity groups provided the president/ secretary/ manager/ group organizer in his capacity as organizer of the group has an authority from majority of the members of the group to arrange insurance on their behalf.

Credit Guard – Mortgage Plans

It is a Group Protection Plan that provides basic life cover to people who have availed of credit from the financial institution/bank. The coverage amount can also be the credit limit under the primary credit card at the time of joining the Insurance scheme subject to a maximum limit.

Life cover is provided under One Year Renewable Group Term Plan and will be renewed on a yearly basis.

All Banks/Institution, who issue credit cards and maintain accurate records of their cardholder members, will be the policyholder of this scheme.

For the Lending Institution

	A tool to attract and retain loyal customers
	Security for the loss-additional revenue stream
	Eliminates the burden of debt collection if the default of payment is caused by the death of the borrower
	Provides product differentiation in an increasingly competitive market

For the Borrower

	Affordable insurance - discount rate, cheaper than an individual term insurance cover
	Minimum medical requirements - only a health declaration form required for loan amount within the free cover limit
	No liability on the family
	This plan can provide peace of mind to the borrower member that in case of his death he would not be passing on the burden of loan to his family members

How Mortgage Plans Work

The Mortgage Life Insurance Plans provide a cover for the outstanding loan amount of the borrower. The borrower pays a nominal premium for the insurance to the lender. The lending institution pays this premium to the insurer on behalf of the borrower. In the event of the demise of the borrower, the insurer pays out the sum assured to the lender or the financial institution.

This sum assured is determined on the basis of the outstanding loan amount at the time of purchasing the policy and can be uniform throughout the loan tenure or can be a reducing sum, based on the loan repayment schedule.

Regulations

Eligibility Conditions and Scheme Coverage

The scheme is applicable to a borrower with an outstanding loan with a financial institution. It offers cover if the borrower is between 18 years of age to 60 years of age. The plan however has a maturity age of 65 years.

The policy term for each borrower would be linked to his loan duration. The coverage on a borrower would be terminated in case the borrower prepays the entire outstanding loan amount.

Tax Treatment

The premium paid by a borrower, in his capacity as an individual, would be eligible for tax rebate under Section 80 C of the Income Tax Act, 1961.

Commencement and Termination

	The insurance coverage shall commence at the latest of
	Date of commencement of the Policy
	Acceptance of the Member by the Insurer, communicated vide acknowledgment to the Bank.
	The insurance coverage shall will cease at the earliest of
	Member attaining cover ceasing age or on death,
	Termination/discontinuation of credit card with Bank, for any reason
	Termination of group master policy,
	Policy renewal date.

Single Premium Group Term Insurance Plan

Key Features

Level Term Plan

It’s a level term plan which offers a uniform cover throughout the tenure of the loan. The sum assured depends on the loan amount outstanding at the time of purchasing the loan.

Low cost Insurance

The plan provides a cover at nominal costs, reducing the financial burden to the extent of outstanding loan, on the dependents of the borrower in case of his demise

Protection for the lender (Bank or financial institution)

The plan provides protection to the lender by repaying the sum assured to cover for any loss on account of the outstanding loan amount in case of death of the borrower.

Customized protection

The plan offers customized features based on the loan portfolio of the lending institution.

Refund of the premium

In case of prepayment of the complete loan, unexpired premium will be refunded up to a certain limit.

Group Mortgage Reducing Term

Key Features

Reducing Term

It is a reducing term plan, whereby the risk on the life (borrower) reduces on the basis of the schedule chosen by the policyholder, which is equitable with the repayment of the loan.

Peace of Mind at Nominal Cost

The pure risk cover provides the necessary peace of mind to the borrower and his family at a very affordable price.

Protection for the lender (Bank or financial institution)

The plan provides protection to the lender by repaying the sum assured to cover for any loss on account of the outstanding loan amount in case of death of the borrower.

Customized protection

The plan offers customized features based on the loan portfolio of the lending institution.

Joint coverage option

Plan offers joint life coverage if the loan is in the name of two borrowers, provided they are related - parent-child, husband -wife or siblings.

Refund of the premium

In case of prepayment of the complete loan, unexpired premium will be refunded up to a certain limit.

Group Asset Assure

With BSLI Group Asset Assure Plan, you can show your customers/employees that you care by securing their families against unforeseen events resulting in financial stress . You can now assure your customers/employees that their families would not have to forgo their dreams or bear the brunt of loan repayment, should anything unfortunate happen to them.

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