Frequent premature death of borrowers is a big impediment for microfinance program by which MFIs have been encountering a lot of troubles in attaining sustainability as well as improving productivity to reach their desired goals. In recent years, average life expectancy of people of our country increased significantly. In spite of this improvement large number of people of lower income segment still die at the middle age. Particularly, women constitute the most vulnerable group to death due to health complications and many of them die before entering old age. This has a negative impact in achieving sustainable poverty alleviation as the successors force to accept the financial burden of the deceased. Obligation to repay the unpaid debts fall on the heirs of deceased that turns into a complex situation for both successors of late borrowers and the service provider institution as well. On the other hand female borrowers after death of husband suffer from uncertain financial state as her spouse is the main utilizer/investor of the borrowed money.
