Is a group scheme under which every life insured is indebted to or a surety of the policyholder whose insurable interest as a policyholder arises solely from that indebtedness or suretyship.
Benefits
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Life Cover of the bollower. Deceased estate is not used to seller any outstanding loans.
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Premiums can be paid on a single premium at commencement of cover or on an annual basis
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It is easier to obtain credit as a credit institution has a lower risk of default
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The estate of the borrower (in the event of death) remains intact and does not have to pay outstanding loan(s).