Do you have credit life insurance to cover you?
Credit life insurance is a form of coverage designed to protect you in case unforeseen circumstances prevent you from repaying your debts. This coverage pays off your outstanding loans if you are retrenched, disabled, or pass away. It ensures that your debt obligations do not burden your family or affect your credit standing during tough times
Why You Need Credit Life Insurance
Credit life insurance covers your debt repayments when you cannot, providing essential financial relief. The cover applies to unsecured loans, vehicle finance, and other types of credit. Should you lose your job or suffer a disability, credit life insurance steps in to settle your debt. For instance, if you lose your job and cannot make loan repayments, the insurance would take over these obligations, ensuring your finances remain intact.
Understanding Credit Life Premiums and Regulations
Credit life cover is strictly regulated in South Africa. By law, the premium cannot exceed R4.50 per R1,000 borrowed. For example, if you have a R50,000 loan, the maximum monthly premium would be R225. Regulations also ensure that every policy offers standard benefits, including cover for death, disability, and retrenchment. Therefore, no matter your provider, you are protected against unforeseen financial difficulties.
Are You Overpaying for Credit Life Cover?
Credit life cover is often added automatically to your credit agreements, which can result in overpaying. Meerkat’s solution simplifies this by consolidating multiple policies into one affordable option, saving you money while providing comprehensive cover. It’s important to review your current policies and ensure you're not overpaying for credit life insurance.
Who is Eligible?
To qualify for credit life insurance with Meerkat, you need to be between 18 and 54 years old with suitable employment status. The policy does not require medical tests for approval, making it accessible to a wide range of individuals. With just your ID and a selfie, you can secure this vital financial protection.
What Happens If I Lose My Job and Can't Pay My Loan?
Losing your job can have a major financial impact, especially if you have debt to repay. With credit life cover, if you are retrenched, the policy will cover your loan repayments. This provides much-needed financial relief during periods of unemployment, ensuring that your credit score remains unaffected and your obligations are met.
Protect Yourself and Your Family
If you rely heavily on your salary to meet debt repayments, credit life insurance can offer peace of mind. It acts as a safety net, ensuring that your debt doesn’t become a burden on you or your loved ones if something goes wrong. Meerkat’s credit life insurance, underwritten by Old Mutual Alternative Risk Transfer Limited (OMART), provides comprehensive and personalized coverage tailored to your financial circumstances.
Why Meerkat?
Meerkat is a financial wellness company that helps South Africans take control of their finances by offering solutions such as credit life insurance, funeral cover, and debt management services. Their mission is to provide accessible and affordable products that protect individuals and families from financial hardship. With Meerkat, you can simplify your financial life, ensuring that you’re prepared for unexpected events and can achieve long-term financial stability.
