Credit Life Insurance Plan (CLIP)

Ensuring financial protection for cooperative partners and members. Credit Life Insurance Plan is designed to protect borrowers/member and their families from financial hardship in the event of the member’s death. This plan is specifically designed to cover loans or any credit transactions.

Credit Life Insurance Plan is insurance on the life of a DEBTOR in connection with a specific loan or other credit transaction of five years’ duration or less, to provide payment equivalent to the outstanding loan balance of the loan to a CREDITOR and a return of total principal payments to the BENEFICIARIES, in the event of death of a DEBTOR.

Upon the death of the Insured DEBTOR, CARE MBA will pay the following benefits to the corresponding beneficiaries:

  • the outstanding balance of the loan at the time of death of the DEBTOR, excluding interest charges, payable to the CREDITOR, and
  • the sum of principal payments made on the loan at the time of death of the DEBTOR, payable to the BENEFICIARY declared in the Application Form for Credit Life Insurance Plan.
  • DEBTORS shall be charged a lump sum amount of PhP 12.50 per PhP 1,000 of approved loan amount per year or equivalently, 1.25% of the approved loan per year for the benefits described in Section 4 above.
  • CARE MBA shall not utilize more than FIFTEEN PERCENT (15%) of the Credit Life Insurance gross contribution for administrative expenses.
  • CARE MBA shall not utilize more than THIRTY PERCENT (30%) of the Credit Life Insurance gross contribution for payment of service fees.
  • CARE MBA shall contribute not more than FIVE PERCENT (5%) of the Credit Life Insurance contribution as increment to the guaranty fund.
  • CARE MBA will review the contribution rates on a yearly basis. CARE MBA reserves the right to change the contribution rate at any time it deems appropriate to maintain the funds of the MBA at a level adequate to meet its benefit obligations or commitments under the plan.

Please click here to view/download CARE MBA IRR

CREDIT LIFE INSURANCE PLAN Credit Life Insurance Plan is insurance on the life of a DEBTOR in connection with a specific loan or other credit transaction of five years’ duration or less, to provide payment equivalent to the outstanding loan balance of the loan to a CREDITOR and a return of total principal payments to the BENEFICIARIES, in the event of death of a DEBTOR.

IMPORTANT NOTICE

The Rules and Regulations of CARE MBA Credit Life Insurance Plan embodies the terms and conditions of the insurance described above. A copy of the Rules and Regulations is kept in the main office of CARE MBA and is available to the CREDITOR/DEBTOR for inspection during its regular office hours.

The Insurance Commission, with offices in Manila, Cebu and Davao, is the government office in charge of the enforcement of all laws relating to insurance and has supervision over mutual benefit associations. It is ready at all times to render assistance in settling any controversy between a mutual benefit association and a member relating to insurance matters.