|BENEFITS||AMOUNT OF INSURANCE|
|Life Insurance||Equal to the insured loan of member|
Coop Loan Protection Plan (CLPP) / Loan Payment Protection Insurance (LPPI) is a group term life protection plan specially designed to provide indemnity for loss of life for the borrower-member of the cooperative.
Who are eligible to avail of CLPP / LPPI?
Members who are 18 to 65 years old, in good health and able to perform the usual duties of their livelihood, and are not afflicted with life threatening diseases.
Loans amounting to One Hundred Thousand Pesos (Php 100,000.00) and above with more than 1 year term.
Premium of Loan Amount Coverage
Annual premium is being computed as follows:
Premium = Loan Amount / 1000 * Php 0.20* Loan term
Please see computation details below:
Loan Amount = Php100,000.00
Terms = 2 years
Php 100,000/ 1,000 = 100
100 * Php 0.20 * 24 months = P480
P480 is the total premium for 24 months
Note: Premium is being deducted from the 1% LGF (Loan Guarantee Fund). Additional premium may be asked from the borrower with pre existing conditions.
Period of Coverage and Date of Effectivity
The protection offered by CLPP / LPPI is co-terminus with the term of the loan of the borrower-member.
The effectivity of the insurance of an eligible borrower commences on the date the proceeds of the loan are released until the maturity of the loan.
In case the borrower defaults in the payment of the principal or interest or both, the arrears must not be more than one year from the date of the amortization or when payments become due.