Credit Life FAQs

Here are the most common credit life insurance questions answered. In short: credit life is not funeral cover — it pays your outstanding debt so your family doesn't inherit it. The premium is based on your cover amount (not your age or health), there's no medical exam, the policy ends when the loan is settled, and your family can claim if you die.

Credit Life FAQs

Here are the questions we get asked most often.

Q: Is credit life insurance the same as funeral cover?

No. Funeral cover pays a lump sum to your family to cover funeral expenses. Credit life pays your outstanding debt so your family doesn't inherit it. Both have their place — credit life specifically protects what you owe.

Q: What if I settle the loan early?

The policy ends with the loan. No further premiums are charged from the settlement date.

Q: What if my loan goes into arrears?

Cover stays in force as long as the loan is open. However, if the loan is handed over to collections or written off, the policy lapses and a claim may not pay out the full amount.

Q: Can my family claim if I die?

Yes. The next-of-kin or estate representative initiates the claim. Once the loan is settled, any cover amount above the outstanding balance is paid to your nominated beneficiary (or your estate if no beneficiary is on file).

Q: Does my age affect the premium?

No. The credit life premium is based on the cover amount, not on your age, gender, or health status. This is one of the reasons credit life is often cheaper than personal life cover.

Q: Do I need a medical exam?

No. Credit life is sold on a guaranteed acceptance basis — there's no medical underwriting. The trade-off is that pre-existing conditions you knew about when taking the loan are usually excluded from disability claims.

Q: What if I'm self-employed?

You can still claim for death and permanent disability. Temporary disability and retrenchment claims require proof of income loss, which is harder to demonstrate when self-employed — speak to us before assuming you're covered for those events.

Q: How do I get a copy of my policy schedule?

It's in the Documents section of your loan in the app. If you can't find it, contact us and we'll send another copy.

Q: Who do I contact if I have a complaint about the claim outcome?

First contact us and we'll try to resolve it directly. If you're still unhappy, you can escalate to the insurer's complaints team, and finally to the Ombud for Long-Term Insurance. Contact details are on the policy schedule.

For the basics, read What is Credit Life Insurance?, and for your protections see Your rights under the National Credit Act.