Product Overview

Credit Life Insurance

Credit Life Insurance is a specialised insurance product that pays off a borrower's outstanding loan balance if they pass away, become permanently disabled, or suffer a critical illness during the loan tenure. It protects both the borrower's family from inheriting debt and the lender from credit losses.

Key Features

What's Included

Core features designed for B2B distribution through banks, NBFCs, MFIs, and fintech lending platforms. Contact us for full benefit schedules and commercial terms.

Death Benefit Cover

Settles the full outstanding loan balance upon the borrower's death — protecting the family from inherited debt and the lender from write-offs.

Permanent Disability Cover

Covers outstanding loan dues in the event the borrower suffers total and permanent disability rendering them unable to repay the loan.

Critical Illness Cover

Optional cover that settles loan obligations upon diagnosis of listed critical illnesses — such as cancer, stroke, or heart attack — during the loan tenure.

Flexible Loan Tenures

Adaptable cover periods aligned to the loan tenure — from short-term microloans to long-term home and business loans across all ticket sizes.

Group & Individual Policy Models

Available as a group master policy (lender-held) or individual policies for borrowers — adaptable to your distribution model and regulatory setup.

Streamlined Claims Process

Simple, fast claims settlement process with minimal documentation — designed to reduce friction for borrower families and lender recovery teams.

How It Works

Simple, Clear Protection

Credit Life Insurance follows a straightforward flow — from policy issuance at loan disbursement to claim settlement when a trigger event occurs.

01

Loan Disbursed

Borrower receives the loan. Credit Life policy is issued simultaneously — either as a group enrolment or individual policy.

02

Premium Collected

Single premium (or instalment-based premium) is collected at disbursal — often built into the loan structure for seamless onboarding.

03

Trigger Event Occurs

If the borrower dies, becomes permanently disabled, or is diagnosed with a critical illness, a claim is initiated.

04

Loan Balance Settled

AGI settles the outstanding loan balance directly with the lender — protecting the borrower's family and the lender's book.

Loan Types

Covers All Major Loan Categories

AGI's Credit Life Insurance is structured to cover a broad range of loan products — making it easy for partners to integrate across their full lending portfolio.

Home Loans

Protects families from losing their home if the primary breadwinner can no longer repay the mortgage — high perceived value for retail borrowers.

Personal Loans

Covers unsecured personal loan balances — a key product for banks and NBFCs seeking to reduce NPA risk on their consumer lending portfolios.

Business & SME Loans

Protects business continuity for lenders — ensuring that a key-person event doesn't result in unrecoverable commercial loan exposure.

Microfinance / Group Loans

Ideal for MFIs and cooperative lending — covers individual borrowers within group loan structures, protecting both co-borrowers and the institution.

Auto / Vehicle Loans

Covers outstanding vehicle loan balances — reducing repossession risk for lenders and protecting borrower families from vehicle loss.

Fintech / Digital Loans

API-ready integration for digital lending platforms — embed Credit Life at loan origination with minimal friction and automated enrolment.

Coverage Details

What Each Trigger Covers

A clear view of coverage scope across the three main trigger events — with optional enhancements available for premium tiers.

Coverage Element	Death	Permanent Disability	Critical Illness
Outstanding Loan Balance Settlement	✓ Included	✓ Included	Optional
EMI Waiver During Claim Processing	✓ Included	✓ Included	Optional
Lump Sum Payout to Lender	✓ Included	✓ Included	✓ Included
Family Surplus Benefit	Optional	—	—
Joint Borrower Cover	Optional	Optional	Optional
Co-borrower / Guarantor Extension	Optional	Optional	—

* Coverage inclusions and optional benefits are subject to commercial terms. Contact our partnerships team for full benefit schedules.

Who It's For

Built for Every Lending Partner

AGI's Credit Life proposition is distribution-ready for a wide range of financial institutions and lending platforms across the B2B landscape.

Banks & Scheduled Commercial Banks

Group master policy models that cover entire retail and MSME loan portfolios with a single policy framework — reducing NPA and improving borrower loyalty.

NBFCs & HFCs

Flexible product structures for non-banking finance and housing finance companies — covering personal loans, auto loans, and mortgage portfolios.

Microfinance Institutions (MFIs)

Group credit life solutions for joint liability group (JLG) and self-help group (SHG) borrowers — protecting co-members from liability after a borrower event.

Fintech & Digital Lenders

API-first integration for digital and app-based lenders — embed Credit Life at loan origination with automated enrolment, zero paper, and instant policy issuance.