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Written By
Fathima Tabasum
Fathima Tabasum
Senior Marketing Associate
Fathima defines Digit's voice in life insurance with her strong command of language. Her creative, clear writing and research skills simplify complex concepts and build trust and engagement.
Reviewed By
Ashok Manwani
Ashok Manwani
Vice President - Products
Ashok is an insurance professional with extensive experience in product development and management. In his role at Digit, he focuses on creating innovative life insurance solutions tailored to meet diverse customer needs.
What is Group Credit Life Insurance?
A group credit life insurance, also known as group credit protection, is an insurance cover that provides coverage to a group of individuals who have taken loans from a financial institution or belong to a specific association.
Designed to safeguard both lenders and borrowers, it mitigates the risks associated with loan defaults due to unforeseen circumstances such as such as disability, involuntary unemployment or critical illness.
In such unfortunate cases, the plan provides financial support to pay off the outstanding loan balance.
The primary objective of a group credit life insurance plan is to protect lenders from potential losses due to loan defaults, while also providing borrowers with peace of mind knowing that their loan obligations would be covered under unusual circumstances.
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How Group Credit Life Insurance Plans Work?
Group Credit Life Insurance plans operate on the principle of pooling resources to provide financial protection against loan defaults. Here's a general overview of how these plans typically work:
Group Enrolment
A group, such as an employer, financial institution, or association, selects a Group Credit Life Insurance plan and enrols eligible members from the group.
Premium Payment
After enrolling the members, finalising the plan and the initial paperwork, the premium is paid. The premium for the group credit life insurance plan is calculated based on various factors, including the loan amount, the number of participants and the level of coverage chosen.
Coverage Activation
Post all paperwork and premium payment, participants become eligible for coverage under the plan. In the event of a covered event, such as disability or involuntary unemployment, participants can file a claim to activate the coverage.
Claim Evaluation and Payout
The insurance provider evaluates the claim to determine its validity and eligibility for coverage. If approved, the outstanding loan balance is paid off, either partially or in full, depending on the terms of the plan. This relieves the borrower from the obligation of loan repayment and protects the lender from financial loss.
Benefits of Group Credit Life Insurance Plan
Financial Security
Group Credit Life Insurance offers peace of mind to individuals and businesses by ensuring that outstanding debts are covered in case of unforeseen circumstances. This helps maintain financial stability and mitigates the risk of default.
Enhanced Customer Confidence
Offering Group Credit Life Insurance as an additional benefit to members or customers enhances their confidence in the group or organization. It demonstrates a commitment to their financial well-being and fosters long-term loyalty.
Risk Management
By transferring the risk of default to the insurance provider, groups can effectively manage their credit risk exposure. This allows them to focus on their core activities and pursue growth opportunities with greater confidence.
Competitive Advantage
Providing Group Credit Life Insurance as a value-added benefit differentiates the group or organization from competitors. It positions them as a reliable and responsible partner, attracting more customers and members.
Things to Consider Before Buying a Group Credit Life Insurance Plan
Things to Consider Before Buying a Group Credit Life Insurance Plan
Before purchasing a group credit life insurance plan, it is crucial for any company to take the following factors into consideration and choose a plan that best aligns with the company's financial goals and objectives.
- Coverage Limitations and Exclusions: Carefully review the terms and conditions of the plan to understand the coverage limitations, exclusions, waiting periods, and any pre-existing condition clauses. Ensure that the plan aligns with your specific needs and provides adequate protection for potential risks.
- Financial Stability of the Provider: Research the insurance provider's financial strength and stability. A reputable and financially secure provider ensures that claims will be paid promptly and that the plan will remain viable over the long term.
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Digit Group Life Insurance Plans That Can Cover your Lending
Digit Life Group Long Term Plan
Digit Life Group Long Term Plan
Group Long Term Plan is a Non-linked, non-participating, group pure risk premium life insurance plan.
- Can be given to lender as well as non-lender groups.
- Provides insurance coverage to the insured members, thus financially protecting their families.
- Minimum Sum Assured ₹5,000 per person, Maximum Sum Assured No Limit.
- Inbuilt Optional Benefits like Terminal Illness, Multistage Cancer Benefit, Critical Illness, etc.
Digit Life Group Micro Term Insurance
Digit Life Group Micro Term Insurance
Group Micro Term Insurance is a Non-linked, non-participating, group pure risk premium micro life insurance plan.
- Can be given to lender as well as non-lender groups.
- Provides insurance coverage to the insured members, thus financially protecting their families.
- Minimum Sum Assured ₹1,000 per person, Maximum Sum Assured ₹2,00,000 per person (subject to IRDA Micro Insurance Regulations 2015).
- Inbuilt Optional Benefits like Hospitalisation cover, Health cover, etc.
99.53% Claim Settlement Ratio For Digit’s Life Insurance in FY'25
99.53% Claim Settlement Ratio For Digit’s Life Insurance in FY'25
When life takes an unexpected turn, every second matters. With a 99.53% Claim Settlement Ratio (CSR), Digit Life Insurance stands as a pillar of trust and reliability. This isn’t just a statistic; it’s a promise to our policyholders.
Every claim tells a story. Whether it was a salaried parent overcoming loss, a child’s future hanging in the balance, or a spouse seeking stability, we acted fast to bring peace of mind to grieving families.
That’s why we are committed to settling genuine claims swiftly, transparently, and with compassion, ensuring that your loved ones receive the support they need when it matters most.
₹2.88 Billion Worth Claims Paid in FY'25
₹2.88 Billion Worth Claims Paid in FY'25
At Digit, we don’t just talk about protecting families; we actually do it. In the last financial year, we paid ₹2.88 billion to families who lost a loved one. That’s a big jump from ₹351.52 million a few years ago, showing how much we have grown and how seriously we take our promise.
Every payout represents a family supported, a future safeguarded, and a promise fulfilled. We make sure claims are settled quickly and clearly, with zero confusion, so families don’t have to worry during tough times.
15,000+ Claims Settled in FY'25
15,000+ Claims Settled in FY'25
Solvency Ratio for Digit's Life Insurance in FY'25
Solvency Ratio for Digit's Life Insurance in FY'25
At Digit, being financially strong isn’t just a goal; it’s how we earn your trust. Our solvency ratio has grown from 2.07 to 3.85, which means we are more than ready to keep every promise we make.
This number shows we have more than enough funds to pay claims and support families, even in tough times. In fact, our ratio is nearly double the required limit, giving you extra peace of mind.
Because when you choose life insurance, you are not just buying protection; you are trusting us with your family’s future. And we take that seriously.
Digit Life Insurance in the Spotlight
How Digit Life Uses Smart Tech to Simplify Life Insurance?
How Digit Life Uses Smart Tech to Simplify Life Insurance?
At Digit Life, we think technology should be more than just innovative, as it should make things easier, safer, and more relatable. That’s why our dedicated tech team is always working to minimise hassles, reduce uncertainty, and ensure everything runs smoothly. Our innovative tools:
- Life User Declaration: Say goodbye to outdated methods! With our Life User Declaration video, our smart systems automatically verify your identity and ensure your declarations match your policy. This process is not only fast but also fully automated and secure, meeting all necessary regulations without any hassle.
- Face Matching: Our advanced Face Matching technology checks your identity with great accuracy. We use sophisticated computer vision models to compare your KYC image with your profile photo, as well as your live video images. This thorough and automated system makes sure it’s really you every time!
- Claim Document Classification: Our Claim Document Classification tool quickly sorts and understands the documents you send for your claim. Trained to handle various document types, this system instantly pulls out important information, helping us speed up the process of approving your claim. It’s all about getting your claims handled efficiently!
The Super Smooth Claims Process at Digit Life
The Super Smooth Claims Process at Digit Life
- With our hassle-free claims process, it's just a 72-hour claim settlement from Last Document Received (LDR).
- We promise a 100% paperless claims experience. No hard copies of the Death Certificate or Medical Reports asked.
- Call our Helpline Number: 18002962626 or 9960126126
- Write to us on Lifeclaims@godigit.com
Why Does it Take 13 Days to Settle a Life Insurance Claim?
Why Does it Take 13 Days to Settle a Life Insurance Claim?
When you file a claim, you may be required to submit some documents to process claim properly and legally:
- Claims form
- Death certificate
- Medical reports
- FIR/post-mortem report (if applicable)
- Nominee identification & bank account details
Sometimes, these documents take time to collect. Maybe they are with different hospitals. Maybe a nominee lives abroad. Maybe legal paperwork is delayed.
That’s why we measure two types of timelines:
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Interesting Digit Life Stories and Milestones from FY’25
1. Record-Breaking Days
Talk about a busy day! We issued over 1.7 lakh policies on September 28, 2024. Our systems were operational even at late hours, issuing over 1,100 policies at 1:08 AM on December 7, 2024.
2. Our Growing Family
The average age for people joining the Digit Life insurance family in FY24-25 was 34 years old, a slight nudge up from 33 years previously.
3. Premium Extremes
Talk about range! We saw an annual premium as high as ₹35 lakh for our Digit Icon product, while we also issued policies for as little as ₹143 for a 2-year Digit Life Group Micro Term Insurance
4. More Women Protected
We saw a 1.2% increase in female lives covered this FY, with women now making up 49.89% of our total covered lives, up from 48.77% last year
5. Flexible Premiums
We've got options! Some folks opted for monthly premiums as low as ₹50 per month, while others chose the monthly premium category for a policy with an annual premium of ₹2.3 lakh (roughly ₹19,000/month).
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Group Credit Life Insurance is a type of life insurance plan designed to protect borrowers and lenders by covering outstanding loan balances in the event of the borrower's death. This insurance ensures that the borrower's family is not burdened with the debt, and the lender receives the remaining loan amount.
By pooling resources, these plans provide financial security and peace of mind to all parties involved. Group Credit Life Insurance is an essential tool for managing financial risks associated with loans, offering a safety net that benefits both the insured individuals and their families.
FAQs about Group Credit Life Insurance
Who are the Most Common Buyers of Group Credit Life Insurance?
Is a Medical Examination Required to Get Group Credit Life Insurance?
What Happens if a Borrower Becomes Disabled and Cannot Work?
Some group credit life insurance policies also include disability coverage, which can help cover loan payments in the event of disability, depending on the policy terms.
The group credit protection plans at Digit provide accidental coverage as part of their inbuilt optional benefits.
How is Group Credit Life Insurance Different from Individual Life Insurance?
Can I have both Group Credit Life Insurance and Health Insurance?
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