Credit Life Insurance is a life policy designed to pay off a borrower’s debt if that borrower dies before the loan is fully paid back to the lender.  In the event of the untimely demise of the borrower, Credit Life Insurance will ensure that title to the purchase will be transferred free and clear to beneficiaries.


  • The borrower is protected from losing their savings or other property if they cannot repay the loan due to death, disability or involuntary unemployment
  • Beneficiaries and dependents are protected from taking up liabilities that they were not a party to and/or privy to
  • The lender is protected from losing the money borrowed


  • Single Life Policy

Single Life Insurance covers one person only and pays out the insured value if that person dies during the length of the policy or makes a claim under the terms of the subsisting insurance

  • Joint Life Policy

Joint Life Insurance covers two or more lives (for instance a spouse or business partner) usually on a first death basis. The insured value is paid out if one of the parties dies during the length of the policy, after which the policy would end


Credit Insurance is available on almost all types of loans including:

  • Education Loans
  • Secured Loans
  • Unsecured Check-off Loans
  • Special Scheme Loans
  • Investment Group Loans
  • Asset Finance


The main policy features are enumerated in the table below:

– Death: The insurance company shall pay the outstanding debt and interest as at date of death. Death may be due to natural or accidental causes

– Total Permanent Disability: A member being totally and permanently incapacitated by reason of injury or illness from his usual occupation, the insurance company shall pay the principal loan outstanding and interest

– Critical Illness: An individual contracting for the first time one of the following conditions, cancer, heart attack, stroke, kidney failure, coronary artery bypass surgery, paraplegia, and major organ transplant, the insurance company shall pay 100% of outstanding loan and interest up to a maximum of KES.12 million

– Retrenchment/Loss of Income: In the unfortunate event of retrenchment or loss of income, the insurance company shall make payment of nine (9) months installments immediately upon retrenchment or proven loss of income arising from damage/loss of financed asset/business

– Free Cover Limit: Maximum amount to be covered without medical examination shall be KES.35 million

– Extensions: 

  • AIDS/HIV and pre-existing conditions
  • Political Violence and Terrorism
  • Waiver of maximum age limit