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If you recently got retrenched - and you had debt (specifically: bank products like loans, credit card and vehicle finance) you are likely to have been paying for credit life insurance as part of your monthly debt repayment.
Here's a quick thread...
#CreditLifeInsurance
Here's a quick thread...
#CreditLifeInsurance
What is Credit life insurance?
According to the National Credit Act, Credit life insurance is insurance that provides security should you be unable to repay your debt due to retrenchment, disability or death.
#CreditLifeInsurance
According to the National Credit Act, Credit life insurance is insurance that provides security should you be unable to repay your debt due to retrenchment, disability or death.
#CreditLifeInsurance
#CreditLifeInsurance
Please note - most of these are clear in terms of job losses. They wont cover you if you:
1. resign or retire
2. Involved in strikes or lock-outs
3. You voluntarily forfeit your salary
4. You are dismissed because of misconduct, dishonesty or fraud
Please note - most of these are clear in terms of job losses. They wont cover you if you:
1. resign or retire
2. Involved in strikes or lock-outs
3. You voluntarily forfeit your salary
4. You are dismissed because of misconduct, dishonesty or fraud
#CreditLifeInsurance
So how does the policy payout work?
1. Policies will pay a lump sum equal to the value of the outstanding debt in terms of a credit agreement in the event you're retrenched.
So how does the policy payout work?
1. Policies will pay a lump sum equal to the value of the outstanding debt in terms of a credit agreement in the event you're retrenched.
#CreditLifeInsurance
2. Policies also typically offer a benefit covering either a proportion of the outstanding debt, or a benefit that covers a proportion of your monthly instalment (up to 100%) for a specified period of time (sometimes as little as three months).
2. Policies also typically offer a benefit covering either a proportion of the outstanding debt, or a benefit that covers a proportion of your monthly instalment (up to 100%) for a specified period of time (sometimes as little as three months).
#CreditLifeInsurance
Some of the conditions!!
In some policies, retrenchment benefits are not paid if a person is self-employed or is retrenched within 30 days of the commencement of the insurance cover (in some cases, waiting periods are up to 3 months).
Some of the conditions!!
In some policies, retrenchment benefits are not paid if a person is self-employed or is retrenched within 30 days of the commencement of the insurance cover (in some cases, waiting periods are up to 3 months).
#CreditLifeInsurance
PLEASE CONTACT YOUR BANK!
Don't assume that the payment arrangements are automatically adjusted once you lose your job. Go to the bank with your retrenchment letter & ask what you have under your credit life insurance.
PLEASE CONTACT YOUR BANK!
Don't assume that the payment arrangements are automatically adjusted once you lose your job. Go to the bank with your retrenchment letter & ask what you have under your credit life insurance.
#CreditLifeInsurance
If your job is still secure, it might also be useful to double check if some of your debts are insured... Just to remain prepared amid these tough times.
If your job is still secure, it might also be useful to double check if some of your debts are insured... Just to remain prepared amid these tough times.
