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You have credit life cover and you probably don't even know it

What is credit life cover?

Credit life cover is a type of insurance that aims to protect you and the payment of your outstanding debts and loans in the face of unforeseen circumstances. Whether you experience retrenchment, permanent or temporary disability, or even death, credit life cover ensures that your financial obligations are still paid. 

What is crucial to understand is that in these unfortunate situations, your debt does not simply vanish or get erased. Instead, it remains a burden that must be addressed. This is where credit life cover comes to your rescue, providing you with valuable assistance in meeting these obligations during challenging times.

Moku Tip: Credit life cover can usually be claimed within 12 months of the event taking place. This is different for each insurer and you should check what your policy entails.

So, how is it that I may not know if I have credit life insurance or not?

Did you know that credit life insurance, also known as credit insurance, may be a requirement when you take out a loan, depending on the credit provider? That's why it's crucial to carefully read through all the details before signing up for any credit agreement, whether it's for credit cards, personal loans, or vehicle asset finance.

And the reason you may not know about is that if credit life insurance is necessary for your specific loan is because it will be included in your monthly premium amount. So, make sure you're fully informed and protected!

This is why if you've ever made a purchase on credit, it is highly likely that credit life insurance was included in the deal.

Interested to know if you can save on your credit life insurance premiums? Let's see if we can help! Simply fill out the contact form!

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How can I check if I have credit life cover on my existing loans?

You can enquire about credit life cover on your pre-existing loans by contacting your different credit providers. 

Is credit life cover compulsory?

While credit life cover is not compulsory, according to The National Credit Act, a creditor provider can insist that you are covered when you take out debt (enter into an agreement with them).

What does credit life insurance cover?

Credit life insurance covers a range of financial obligations in the event of unforeseen circumstances. It provides protection and peace of mind for both you and your loved ones. Here are some key aspects that credit life insurance typically covers, but again, this may differ slightly depending on the insurer:

  1. Death Benefit: In the unfortunate event of your death, credit life insurance will cover the outstanding balance on your loans or debts, ensuring that your loved ones are not burdened with this financial responsibility.
  2. Disability Benefit: This can usually apply to both temporary disability and permanent disability. If you become permanently or temporarily disabled and are unable to work, credit life insurance can cover your loan repayments, giving you the financial support you need during this challenging time.
  3. Retrenchment Benefit: In the event of retrenchment, when you are not earning an income, credit life insurance can help cover your loan repayments for a specified period, providing you with a safety net until you find employment again.

It is important to review your specific policy to understand the exact terms and conditions of your credit life insurance coverage. Each insurer may have variations in their offerings, so it is crucial to familiarise yourself with the details to ensure you are adequately protected.

Moku Tip: It’s important to note that should you default on your credit agreement and debt repayments, your credit life insurance can lapse. This means that if you have missed a previous debt payment, you credit life insurance may no longer exist.

What does credit life cover cost?

The National Credit Regulator (NCR) has implemented regulations to govern the maximum fees that lenders can charge consumers for credit life cover.

For unsecured loans, which are loans not backed by any asset, the maximum charge for credit life insurance is R4.50 per R1000 of the loan amount.

In the case of home loans, the cost of credit life insurance cannot be more than R2 per R1000. This regulation aims to protect homeowners and ensure that they are not overcharged for this essential form of insurance.

Save money and switch to Meerkat's credit life cover

Did you know: you are able to switch credit life insurance providers if you find that you can save money on your insurance premium with the new provider. 

Let us have a look at your current credit life insurance cover and see if we can beat your premiums! Fill out the contact form today and we'll give you a FREE call-back. 

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How do I claim credit life cover?

If you have credit life cover with Meerkat, you can claim your cover by emailing insurance@meerkat.co.za or calling 021 003 4534.

Moku Tip: If you have been retrenched, check in with your creditors with whom you have loans. Ask them if you can see your policy documents. Alternatively, you can ask them upfront if you have credit life cover on your loan(s).

You can then tell them that you are retrenched and you are putting in a claim. They can then inform you about their claims process for credit life cover.

Who is Meerkat?

Meerkat is a leading financial wellness company dedicated to empowering South African consumers to do MORE with their money. We specialise in debt counselling, providing affordable funeral insurance, helping you kick-start an emergency savings fund, consolidating & saving you money for your credit life cover, and legally getting you removed from the debt review process. Ready to experience the Meerkat difference? Simply complete the contact form on our website and one of our experts will give you a FREE call-back!

Meerkat's credit life insurance is underwritten by Old Mutual Alternative Risk Transfer Limited, part of the Old Mutual Group

 

 

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