Group Creditor Life is a group life insurance product purchased by lenders to provide coverage primarily against the risk of death of its borrowers. Canopy’s Group Creditor Life also offers other voluntary policy riders including critical illness and accidental death and dismemberment.
Should an eligible, insured borrower die, the life insurance company would pay the covered benefit which is equal to the outstanding loan balance (subject to policy maximums) to the lender, who is in turn obligated to use the benefit paid to reduce the borrower’s obligation to the lender.
While coverage against death is mandatory under the policy, voluntary riders are also available. These include:
- Accidental Dismemberment & Permanent Total Disability
- Critical Illness