Credit Level Term Assurance

Credit Level Term Assurance is designed for one clear purpose: to ensure that your outstanding loans do not become a financial burden for your family if something happens to you. When you get a home loan, a business loan, or any other kind of long-term credit, you still have to pay it back. This kind of term insurance serves as a safety net, keeping your loved ones and the things you own connected to the loan safe.

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₹1 Crore loan cover starting from 361/month+

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Credit-level term assurance differs from regular term insurance because it protects your debts rather than replacing your income. It makes things easier, more predictable, and more responsible with money.

What Is Credit Level Term Assurance?

Credit level term assurance is a term insurance policy in which the assured amount is fixed and remains unchanged throughout the policy tenure. The policy is designed to match the loan tenure, and the assured amount is close to the actual loan amount.

In the event of the policyholder’s death or total and permanent disability, the insurance company pays a guaranteed lump sum. This helps the policyholder's family avoid the hassles of paying EMI, clearing loans, and having assets repossessed.

In many insurance classifications, credit-level term assurance falls under credit life insurance, a category of policies designed to protect borrowers and lenders against loan-related risks.

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0 40 yrs

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Benefits of Credit Level Term Assurance

Guaranteed Debt Repayment
The best thing about credit level term assurance is that it guarantees that debts will be paid back. The loan is paid back right away if the policyholder dies, is diagnosed with a terminal illness, or becomes totally and permanently disabled.
Keeping Family Assets Safe
When you take out a large loan, the collateral is usually a family asset, such as a house, car, or business property. Credit level term assurance protects family assets from foreclosure.
Fixed Premiums
The premium stays the same for the whole time the policy is in effect. This gives the borrowers a stable financial situation.
Peace of Mind for the Policyholder
Knowing that the family won't have to pay back the loan gives the borrowers peace of mind.
Optional Riders
Many insurers allow riders such as critical illness or disability cover to be added to a credit level term assurance plan, offering broader protection under the same life insurance policy.

Term Plans

LIFE COVER

₹ 1 Crore

STARTS AT

₹ 13/day⁺

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LIFE COVER

₹ 50 Lakh

STARTS AT

₹ 8/day⁺

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LIFE COVER

₹ 75 Lakh

STARTS AT

₹ 12/day⁺

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Who Should Consider Buying Credit Level Term Assurance?

This policy is particularly useful for borrowers who carry significant financial responsibility and want clarity rather than complexity.

Primary income earners with dependents
If your family depends mainly on your income, any outstanding loan can quickly become overwhelming in your absence. Credit level term assurance ensures that your dependents can focus on stability rather than managing debt.
Individuals with high-value or long-term loans
The longer the loan tenure, the higher the uncertainty. A 20-year loan taken today assumes decades of stable income and good health. Credit level term assurance protects against the unpredictability of life over such long periods.
Business owners with personal liability exposure
Many business loans involve personal guarantees. If the borrower is no longer around, the lender can legally recover dues from personal assets. This policy helps shield the family from that risk.
Borrowers who prefer simple, fixed protection
Not everyone wants complicated insurance structures. Credit level term assurance appeals to those who want straightforward coverage, fixed premiums, and clear outcomes without ongoing adjustments.
Used alongside a regular term insurance plan, it creates a balanced approach: one policy clears liabilities, the other supports long-term family needs.

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Things to Consider Before Buying Credit Level Term Assurance

Choosing the right policy requires attention to detail. A poorly aligned plan can reduce its effectiveness.

Make sure the policy lasts as long as the loan
The policy should cover the whole time the loan is in effect. If the insurance runs out before the loan, the remaining years are not covered. Always make sure that both timelines are in sync.
Choose a sum assured that covers the whole amount of the liability.
The amount of the loan, plus any fees, should be easy to cover with the sum assured. Not having enough insurance defeats the purpose of the policy.
Read the exclusions and conditions for making a claim carefully.
Know about waiting periods, exclusions for making claims too soon, and the rules for being disabled or having a terminal illness. At the time of the claim, these details are important.
Instead of insurance that comes with a loan, look at independent policies.
Lenders' insurance is useful, but it can be expensive and not as flexible. Standalone policies usually offer more options for riders, more transparency, and lower costs.

Final Thoughts

Credit-level term assurance is a good way to lower the risk of a loan. It ensures that outstanding debts are paid off if the borrower can't repay them. This cover helps protect family members from having to repay loans or losing assets if you have long-term or high-value loans. When you pick the right one, it has one clear purpose: to keep debt from becoming someone else's problem.

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FAQs

Q. Do loans have to have credit level term assurance?

Ans: No, it is not required. But lenders might suggest it. You should think about your financial obligations and dependents before buying.
Q. What makes credit level term assurance different from regular term insurance?

Ans: Regular term insurance is meant to replace lost income, while credit-level term insurance is meant to protect loans that are still owed.
Q. Is it possible to use the claim amount for things other than paying back the loan?

Ans: Yes. The nominee gets the money and can use it however they want. Most of the time, paying off the loan is the most important thing.
Q. Is credit level term assurance expensive?

Ans: Premiums are slightly higher than those of short-term plans, but they cover the same benefits and have predictable costs, making them a good choice for long-term loans.
Q. Can I get credit level term assurance from someone other than my lender?

Ans: Yes. Instead of getting a plan through a lender, you can buy it directly from an insurance company, which is usually a better deal.

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˜The insurers/plans mentioned are arranged in order of highest to lowest Sum Assured(SA) offered by Policybazaar’s insurer partners offering term insurance plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI.

Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in

Rs. 400/month is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

Rs. 400/month (Rs.13/day) is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 230 is starting price for a 50 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 8/day is starting price for a 50 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 12/day is starting price for a 75 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 497/month is starting price for a 1.5 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 487/month is starting price for a 2 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 626/month is starting price for a 3 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 905/month is starting price for a 5 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. ₹361/month is the starting price for a ₹1 crore loan cover with an 8% interest rate for an 18-year-old male, non-smoker, with no pre-existing diseases, loan tenure up to 20 years, rounded off to the nearest 10

+Rs. 1,267/month is starting price for a 7 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

*The full refund of premium is available on availing the one-time option of refund of premium. Total premium paid for policy (paid for add-ons) will be the special exit value, payable on availing the one-time option of refund of premium if you wish to completely exit the policy.

+Rs. 447/month is starting price for a 1 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs.679/month is starting price for a 2 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 910/month is starting price for a 3 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 1,374/month is starting price for a 5 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 1,924month is starting price for a 7 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

Women

+Rs. 400/month is Starting price for a 1 crore term life insurance for an 18 year-old Female, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

Rs. 461/month is the starting price for a 1 crore term life insurance for an 24 year-old female, non-smoker, with no pre-existing diseases, cover upto 54 years of age.

1,642/month is the starting price for a 1 crore term life insurance for an 44 year-old female, non-smoker, with no pre-existing diseases, cover upto 74 years of age.

Prices offered by the insurer are as per the approved insurance plans | #All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply | **Tax Benefits are subject to changes in tax laws.| Policybazaar Insurance Brokers Private Limited

We will respond in the first instance within 30 minutes of the customers contacting us. 30-minute claim support service is for the purpose of giving reasonable assistance to the policyholder in pursuance of the claim. Settlement of claim (including cashless claim) is the responsibility of the insurer as per policy terms and conditions. The 30-minute claim support is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. For further details, 24x7 Claims Support Helpline can be reached out at 1800-258-5881

For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding a sale

Policybazaar Insurance Brokers Private Limited | CIN: U74999HR2014PTC053454 | Registered Office - Plot No.119, Sector - 44, Gurgaon, Haryana – 122001 | Registration No. 742, Valid till 09/06/2027, License category- Composite Broker Visitors are hereby informed that their information submitted on the website may be shared with insurers. Product information is authentic and solely based on the information received from the insurers.

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