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What is Credit Life Insurance
Credit life insurance is insurance that repays your debt when you are unable to do so due to retrenchment, disability – or if you develop a serious illness and can no longer work. Depending on your cover, your debt will either be paid in part, or in full to your creditors.
Credit life cover also covers your debts if you die. This means that the lump sum pay-out from a life policy does not need to be used to pay your debt.
Credit life cover is mandatory
In terms of the National Credit Act (NCA), credit life insurance cover is mandatory / required by law. A credit provider can rightfully insist that you have a credit life insurance for the duration of your credit agreement with them.
Many credit products such as credit cards, personal loans, vehicle finance and home loans are sold with credit life cover policies. The insurance premiums are included in your installment and the contracts are often signed together or are part of the credit agreement.
However, no credit provider may insist that the credit life insurance policy be held with them. You have the right to choose your insurer.
Cost of cover
Credit life insurance is insurance that repays your debt when you are unable to do so due to retrenchment, disability – or if you develop a serious illness and can no longer work. Depending on your cover, your debt will either be paid in part, or in full to your creditors.
Credit life cover also covers your debts if you die. This means that the lump sum pay-out from a life policy does not need to be used to pay your debt.
Authorised financial services provider (FSP)
In terms of the National Credit Act (NCA), credit life insurance cover is mandatory / required by law. A credit provider can rightfully insist that you have a credit life insurance for the duration of your credit agreement with them.
Many credit products such as credit cards, personal loans, vehicle finance and home loans are sold with credit life cover policies. The insurance premiums are included in your installment and the contracts are often signed together or are part of the credit agreement.
However, no credit provider may insist that the credit life insurance policy be held with them. You have the right to choose your insurer.
Debt review
We are able to structure an insurance package in conjunction with your current debt review process, and guarantee that in the event of your death, disability, illness or loss of income – your debt will be seen to.
