This life policy is designed to meet the requirements of individual borrowers to ensure that the outstanding loan is extinguished automatically in the event of the borrowers death. The annual premiums depend on the schedule of outstanding loan amounts at the beginning of each year. On death of the borrower the loan is liquidated straightaway by admittance of claim under the policy. Benefits are fixed and death benefit decreases with every year. Premium under the plan can also be paid in a lumpsum as single premium.