Credit life insurance provides a safety net for borrowers
Credit life insurance is a concept that dates back centuries but is still new to the Cambodian market. More Cambodians than ever are turning to microfinance for money to cover their small business endeavours or pay expenses, and, increasingly, they are looking to protect their families from the burden of these debts in the event of death or disability. Khem Sary, executive director of Meada, said that credit life insurance helps spread risks and makes customers feel less vulnerable. “Because our clients are poor they face high vulnerability when taking out loans,” he explained. “Our real achievement has been to increase the number of poor people covered by insurance.
