What is credit life insurance?

Credit life insurance is a type of insurance that’s designed to help pay your loan repayments or outstanding debts for you if you’re no longer able to because of a life-changing event. It gives you the financial security that your loans or outstanding amount(s) will be paid.

What does credit life insurance do?

If you manage your credit well, credit life insurance could give you peace of mind that your debt is fully covered if you were to pass away or got retrenched, sick or disabled and could no longer earn an income and therefore afford to pay your loans/debt.

5 Reasons to get credit life insurance

• If you have a home loan, credit card, personal loan or vehicle loan, credit life insurance can provide protection and relief from the what-ifs, helping with the following:  
  • Paying the outstanding amount  
  • Covering your monthly repayments
• Your premiums are calculated based on the outstanding balance, and it reduces as your outstanding balance reduces.
• Pay-out amounts and time will depend on the reason for your inability to pay.
• Your family won’t be burdened with the debt should an unforeseen event happen, and you can’t pay back the debt.
• Credit life protection plans pay out as soon as the insured event takes place, subject to the terms and conditions of the policy. This means that your family won’t have to wait for life cover or other policies to settle your outstanding debts.

Standard Bank Insurance Brokers offers a range of Credit Life Protection plans underwritten by Liberty Group, depending on the type of loan you want to cover.

Home loan protection

The home loan protection plan covers your property so you won’t have to worry about losing your family home if something happens to you. It provides the following:

• Covers the outstanding balance on your home loan up to R2 million in the event of death, dread disease or permanent disability
• Pays up to 12 months bond instalments if you’re temporarily disabled and unable to work due to an accident or illness
• Pays up to 6 months bond instalments if you are retrenched from your job

Premiums are calculated based on age, gender, income and smoking status, and your outstanding balance reduces in line with the reduction in your outstanding home loan amount.

If you have a joint bond and credit cover, the younger holder receives a 40% discount on premiums. There are also different plans to choose from to suit your circumstances and needs.

Credit card protection

The credit card protection plan gives you the reassurance that what you owe will be settled and your family won’t be left with the financial burden of credit card debt. It provides the following:

• Settles your outstanding balance up to a maximum of R250 000 in the event of death, dread disease or permanent disability
• Covers your monthly repayments for up to 12 months if retrenched  
• Covers your monthly repayments for up to 12 months following temporary disablement
• Includes a double accident pay-out in the event of accidental death
• Includes a minimum cover of R25 000

Premiums are calculated at a rate per R1 000 of your monthly outstanding balance and will be debited directly from your credit card. Free accidental death cover is automatically included for secondary cardholders.

Personal loan protection

A safety net for your personal loans, including student loans, overdraft or revolving credit plan, your personal loan protection plan provides the following:

• Pays off your loan up to a maximum of R300 000 in the event of death, dread disease or permanent disability
• Pays your loan instalments for a maximum of 12 months following temporary disablement  
• Covers your instalments for a maximum of 12 months if you’re retrenched 
• Includes a minimum cover of R20 000

Credit life insurance is mandatory on all new and limit increase revovling credit plans. Your premiums are calculated on the monthly rate per R1 000 of the outstanding balance of your loan, so as you pay it off, your premiums will decrease. If you have a joint policy, the younger life insured receives a 40% discount on premiums. There are different plans to choose from depending on your circumstances and needs.

Debt Protection

A safety net for your term loans, it’s also a mandatory policy that provides the following:

• Pays off your loan up to a maximum of R300 000 in the event of death and permanent disability
• Pays your loan instalments for a maximum of 12 months following temporary disablement
• Covers your instalments for a maximum of 12 months if you’re retrenched or inability to earn an income
• Includes a minimum cover of R20 000

Vehicle and asset finance protection plan

Keep the wheels rolling and avoid repossession with a plan that’s based on your circumstances and personal and professional needs that provides the following:  

• Settles the outstanding balance on your vehicle finance agreement up to a total of R1 million in the event of death, dread disease or permanent disability
• Pays your vehicle finance instalments for a maximum of 12 months following temporary disablement  
• Covers your instalments for a maximum of 6 months if you’re retrenched

Let us help you find the right insurance options for your needs today.

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_{Credit Life Insurance policies are underwritten by Liberty Group Limited. The Standard Bank of South Africa Limited is a juristic representative of Standard Bank Insurance Brokers an authorised FSP (FAIS no. 224). Terms and conditions, risks and limitations apply.}