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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.

When the worst happens, credit life insurance will make all the difference. The principal member will be covered in the case of permanent disability or retrenchment so that the family isn’t left with the financial burden which can be caused by these events. And, in the event of the death of the principal member, this long-term credit life insurance will ensure that those left behind will not suffer any financial strain, especially if the principal member was the breadwinner. This form of life insurance takes care of the principal member and the family when they need it most. 

Credit life insurance settles any outstanding debt owed on a loan or credit account so the principal member or their family are not left to deal with this. Proof of the pay-off balance of the borrower’s account or loan from the insurer will go to the lender. The benefits of this long-term insurance are structured to cover various forms of debt, such as personal loans, purchases on credit and overdraft accounts. Should the policyholder pass away, become permanently disabled or be retrenched, African Unity Life will pay the creditor the outstanding amount.   

Of course, it’s important to understand exactly what is covered by credit life insurance. You’ll receive the benefits of this insurance in the case of permanent total disability, involuntary retrenchment, and in the event of natural or accidental death, your family will be covered by this policy. 

At the end of the day, if the worst is to happen, you want to know that your debt is covered and that neither you nor your family will end up with the financial burden of not being able to cover these expenses. The peace of mind that this type of long-term life insurance offers will make all the difference should any of the above occur. 


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.

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