Skip to main content

By African Unity Life

Fri, 07 Sep 2018
African Unity Life

There are many different kinds of insurance policies available. And, while you know that they offer a valuable financial safeguard, sometimes it can be difficult to know what each one means and why it is important. That is why we are going to be discussing credit life cover today. When it comes to any insurance policy, or a financial service of any kind, for that matter, it is important to have all the details. 

What is credit life insurance?
Credit life insurance, especially that which is underwritten by African Unity Life, is a policy that protects you and your family’s finances in certain circumstances. These circumstances include retrenchment, permanent disability and accidental death of the principal member. The way in which your finances are protected is that your debt is paid off in the event that you are unable to pay them off yourself for the above reasons. These debts include your credit debt and any overdraft accounts that you may have. 

How does it work?
In the case of your death, permanent disability or retrenchment, your debts will be repaid and neither you (in the case of permanent disability or retrenchment) nor your family (in the event of your death) will have to repay the debt. The policy is owned by the finance provider, alternatively known as the lender, and is paid by you (the person who has borrowed the money). As with every policy, you will pay a premium for this insurance. 

Why do you need it?
Firstly, you should have this policy so that you know that you are going to be financially secure should you be retrenched or permanently disabled. Having to pay back debt while you are unable to work or while you are looking for work can be an incredible strain on your finances. Having this policy takes away the stress and worry that can come with being unable to repay your debts to the finance provider. This can make a difficult financial time in your life even more difficult. Borrowing money from a financial services provider is often necessary in at certain times during your life, however, this does not mean you need to be crippled by debt should anything unforeseen happen.  

Secondly, should you pass away due to an accident, without a credit life insurance policy, your family may be left to pay off your debts. This could cause heavy financial strain on your family, especially during a time when they are in mourning and trying to cope with their loss. It is important to remember that this type of policy is as much for your peace of mind as it is for your family’s financial security. 

Credit life insurance becomes even more important if you are a parent or have any other financial dependants and, especially, if you are the sole breadwinner of the family. You want your dependants to have the best life possible and the added financial strain of your debt could be a serious burden for them to have to carry. 

This kind of policy is affordable and offers you the type of peace of mind that you really need should the worst happen. If you have a look at credit life insurance quotes, especially those policies which are underwritten by African Unity Life, you will see that it is an inexpensive form of cover that is definitely worth having. 

In conclusion
Credit life insurance is a policy that protects you and your family’s financial security should you be retrenched, permanently disabled or pass away due to an accident. If you have any debt which could cause financial strain on you or your family should one of the above happen, it is definitely a policy worth having. You can receive a quote from African Unity Life through our website. It’s easy and worth a moment of your time.