What does Credit Life Insurance cover?

Credit life insurance covers four main life events that could stop you earning an income: death, permanent disability, temporary disability, and retrenchment. On death or permanent disability the insurer settles your outstanding balance; for temporary disability or retrenchment it covers your instalments while you cannot work, up to the policy limits.

What does Credit Life Insurance cover?

Credit life insurance is built around the events that could stop you from earning an income. The four events typically covered are:

1. Death — If the borrower passes away while the loan is active, the insurer pays the outstanding balance and the loan is settled in full.
2. Permanent disability — If you become permanently disabled and can no longer earn an income, the insurer settles the outstanding balance.
3. Temporary disability — If you are temporarily unable to work due to illness or injury, the insurer covers your monthly instalments for the period you are unable to work.
4. Retrenchment — If you lose your job through retrenchment (not resignation or dismissal), the insurer covers your instalments for the period you are unemployed, up to the policy's limits.

The exact events covered, and the maximum amount the insurer will pay, are listed on your credit life policy schedule — the one-page document we send you when your loan is paid out. Keep it in a safe place; your family or HR officer may need it to make a claim.

See also What Credit Life does NOT cover and How to make a Credit Life claim.