Credit life cover or credit life insurance is a type of insurance that covers your debt in the event of retrenchment, disability or death.
The unfortunate truth is that your debt still needs to be paid even when your circumstances change.
Did you know: you could have credit life cover without knowing it. This is because when you take out any form of credit, many credit lenders will have it as a requirement that credit life insurance be included in your contract and monthly instalment.
Read: You could have credit life cover on your loans without even knowing it
This is why it's crucial that you properly read all your credit agreements BEFORE signing them.
I have many loans and store accounts, how do I check if I have credit life insurance?
You can do this asking the relevant credit providers if you do, and how much you are spending on it per month.
Why is it essential that I have CLI?
Credit life insurance (CLI) is essential for anyone who has taken out a loan or credit agreement. It provides a safety net in case of unforeseen circumstances such as retrenchment, disability, or death, ensuring that your debt obligations are taken care of even when you are unable to earn an income.
Especially in our current economic climate, it is essential that you have a safety net in place. And, if we could learn anything from COVID-19 it's that, job security might seem like it's a given, but you should always take the necessary precautions because you really never know what could happen.
When you have CLI, it will give you peace of mind knowing that your outstanding balance will be covered, giving you financial security during difficult times. The last thing you want to be stressing about after being retrenched for example, is how you will pay for all your debt.
And in the very unfortunate situation of your passing, by having CLI, you can rest assured that your loan amount will be paid off, protecting your loved ones from the burden of debt in case of any unfortunate events. It is a wise investment to have CLI as part of your financial plan, providing you with the necessary protection and support when you, and your family members, need it the most.
What is a disadvantage of having a credit life insurance policy?
One disadvantage of a credit life insurance policy is that you may have too many in place that is actually required or necessary. This could mean that you're paying much more than what you could be paying to be adequately covered.
What does credit insurance cover?
This is dependent on the insurer, but mostly, credit life insurance covers death, retrenchment, and disability. With Meerkat credit life cover, you are covered in the case of temporary and permanent disability.
Does credit life cover dismissal?
Technically, retrenchment is a form of dismissal so your credit life cover should cover your debts if you have been retrenched.
I've been retrenched, now what?
You can ask your creditors if you have this type of insurance, and if they say you do, you can let them know that you are putting in a claim. They will then inform you about their particular claim process for credit life cover.
Meerkat's credit life cover
You are allowed to change credit life insurance providers if you find that you can save money on your insurance premium with the new provider.
We can take a look at your current CLI cover and see if we can beat your premiums! We will also consolidate all your credit life cover premiums into one, saving you money! Get a quick quote now.
How do I claim for CLI at Meerkat?
At Meerkat, if you are one of our credit life cover clients, you can claim your cover by emailing insurance@meerkat.co.za or calling 021 003 4534.
*Your claim must be made within 3 months of the claim event. If the claim is only submitted after 3 months, an affidavit which outlines the reason for the delay and supports the claim documentation will be required.
Why Meerkat?
With Meerkat's credit life cover, you can consolidate all your current credit life cover policies into one monthly installment. This means you could end up saving money!
Meerkat's credit life cover, covers unsecured debt including credit card debt or store accounts for example. We do not cover vehicle asset finance or home loans.
The bottom line is, Meerkat's CLI cover gives you a practical and cost-effective solution to multiple insurance policies, ensuring you are protected at the most affordable rate!
What do I need to qualify for Meerkat's CLI?
You can qualify for CLI at Meerkat if you are between 18 and 55 years old and you're earning an income.
Who is Meerkat?
Meerkat is a financial wellness company committed to helping South Africans do MORE with their money. We do this by helping South Africans:
- Get out of debt.
- Get affordable funeral cover.
- Kick-start an emergency savings fund.
- Provide protection of their income during unforeseen circumstances with credit life cover.
Meerkat's credit life insurance is underwritten by Old Mutual Alternative Risk Transfer Limited, Part of the Old Mutual Group