Consolidates all credit protection or credit life policies into a single policy, or as a new policy where there are no existing credit protection/life policies in place.
What is Credit Life insurance?
Credit Life insurance covers debt obligations in the event of the insured’s death, disability, a dread disease or retrenchment.
It is usually sold as part of a loan or credit agreement to protect the financial institution from whom you obtained the loan and makes it easier for you to be approved for credit, as the debt provider does not have to take on the risk of unsettled debt.
In the case of death, total disability or dread disease the outstanding liability will be paid out.
If the Insured is temporary disabled or retrenched, credit life insurance will cover the monthly instalment.
Who is the product aimed at?
Anyone who makes use of various lines of credit and incurs debt while supporting a family, educating children, investing in a home or a set of wheels, and generally living a normal life. Credit Life insurance will also give your debt provider peace of mind, knowing that despite your death or disability, your debt will be settled.
In the event of your death, any benefits that are payable to your dependants, for example life insurance, are not eroded by outstanding debt.