What is credit life insurance in SAP FS-CML - Loans Management?

SAP Term: credit life insurance

• Component: FS-CML

• Component Name: Loans Management

• Description: Risk insurance concluded by the lender with an insurance company to cover loan losses. If an insurance event occurs, the insurance company is responsible for the remaining debt on the loan. Insurable risks are: Death Occupational disability Unemployment

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• Key Concepts: 
  Credit life insurance is a type of insurance that is designed to pay off a borrower’s loan in the event of their death. It is typically offered by lenders as an optional add-on to a loan agreement. The FS-CML Loans Management component of SAP provides a comprehensive solution for managing credit life insurance policies. 
  
  How to use it: 
  The FS-CML Loans Management component of SAP allows users to manage credit life insurance policies from within the system. It provides features such as policy creation, policy management, and policy termination. It also allows users to track and monitor policy performance and generate reports on policy performance. 
  
  Tips & Tricks: 
  When creating a credit life insurance policy in SAP, it is important to ensure that all of the necessary information is included in the policy. This includes the borrower’s name, address, and contact information, as well as the loan amount and term. Additionally, it is important to ensure that all of the necessary documents are included in the policy, such as the loan agreement and any other relevant documents. 
  
  Related Information: 
  The FS-CML Loans Management component of SAP also provides features for managing other types of loans, such as consumer loans, mortgages, and auto loans. Additionally, it provides features for managing collateral and other related documents. For more information on how to use this component of SAP, please refer to the official SAP documentation.