Credit Life Insurance forms an important part of the consumer credit landscape, yet many consumers are not aware of what credit life insurance is, how it works, what it costs, where to find their policy or whether they have it! In this blog series, we will be taking a close look at what credit life insurance is
and why it is important
that you know more about it.
If you have credit, in the form of vehicle finance, a home loan, or store accounts – then you most likely have credit life insurance. Credit life insurance is insurance that covers a consumer’s outstanding debt in the event of death, disability, terminal illness, unemployment or other insurable risks that can impair a consumer’s ability to make monthly payments.
In South Africa, the National Credit Act allows that a credit provider may insist that you take out credit life insurance, however, the credit provider is not allowed to say where you must take out such cover. You are therefore allowed to shop around for the policy that suits your needs.
Other issues relating to credit life insurance are the cost of the insurance (there are laws protecting how much consumers are allowed to pay), types of credit life insurance, claim rates, consumer knowledge, what is covered, and how to claim to name a few!
During the following weeks, we will unpack these issues and take a closer look at what you need to know about credit life insurance.
In the meantime, it is always a good idea to know your credit score and to make sure your credit report is accurate. To get your credit report, visit www.mycreditcheck.co.za
Remember: An informed individual is a protected individual!