Credit life insurance is often designed poorly and provides little value to clients and their beneficiaries. When products provide little value to clients, they reinforce a common negative attitude towards insurance. Thus, improving the value of credit life products may improve clients’ attitudes towards insurance, and in turn improve overall demand for microinsurance.

To understand the status of credit life microinsurance, and to formulate ways to improve the overall quality of credit life products, this paper responds to the following questions:

1) What is credit life insurance and how is it structured?

2) Who benefits from this coverage: borrowers, lenders and insurers?

3) How is good value for clients measured, and is it achieved?

4) What are examples of credit life products that provide value to clients?

5) How might credit life products be expanded or adjusted to offer greater value to clients?

6) What operational considerations are necessary to improve credit life products?