Credit Life Insurance
In the event of the principal member’s death, permanent disability or retrenchment, African Unity Life’s credit life benefit settles the outstanding credit or loan amount with the relevant finance provider, which will relieve the financial burden on the family.
Frequently Asked Questions About Credit Life Insurance
What is credit life insurance and what does it cover?
Credit life insurance is there to cover any debt that you may have in the event of permanent disability, retrenchment or accidental death.
Who owns the policy?
The policy is owned by the lender or finance provider, which refers to the institution you have borrowed money from, such as the bank.
Who pays for the policy?
The borrower (you) pays for the policy.
Can I have life insurance and credit life insurance?
Yes. You’ll find that it is usually a requirement that you already have a policy in place to cede to the finance provider as security for a loan. Without this policy, you probably will not be able to obtain a loan. A life insurance policy typically serves to relieve the financial burden of a family after the death of a breadwinner. Credit life is a simple payout to cover debt cost with an institution quickly.
Can my family benefit from this policy?
Your family will benefit from this credit life insurance policy in the sense that they don’t have to pay your outstanding debt. In the event of your death, your outstanding loan amount will be settled in full.