What is Credit Life Insurance?

Credit life insurance is cover that settles what you still owe on a loan if you die, become permanently or temporarily disabled, or are retrenched. Instead of your family having to find the money, the insurer pays the outstanding balance to the credit provider. At eKasi Pay Credit this cover is mandatory and provided through a regulated insurer.

What is Credit Life Insurance?

Credit life insurance is a kind of cover designed to settle what you still owe on a loan if something serious happens to you — like death, permanent or temporary disability, or retrenchment. Instead of your family having to find money to pay the debt during a difficult time, the insurer pays the outstanding balance directly to the credit provider.

In South Africa, the National Credit Act caps how much can be charged for credit life cover. At eKasi Pay Credit, credit life cover is mandatory and is arranged through our broker, ASPIS (FSP 48407), and underwritten by 1Life (FSP 24769), at a regulated rate of R4.50 per R1,000 of cover. You retain the right under the Act to substitute it with an equivalent policy of your own that meets the minimum requirements.

To understand the cost, read How is my Credit Life premium calculated? and see our loan costs and fees.