When an unexpected life-changing event occurs, such as death, disability or retrenchment, the financial repercussions are the last thing you or your loved ones want to consider. These tragic events’ financial pressures on your family are almost inevitable. However, much like debt and monthly expenses, these events can be planned for, and their consequences mitigated.
You do not want your friends, family, and other loved ones having to dip into their savings to cover your monetary obligations or, possibly, put them into debt. To account for these unexpected events in your and their lives, there are financial solutions to help avoid many of the worst-case scenarios. Your debts need to be covered during potential unemployment, throughout your life and after your death.
Credit life insurance coverage is a cost-effective safeguard for your debts and expenditure. If the unthinkable were to happen – and you were retrenched, injured, or passed away – it would give you and your family tremendous comfort knowing that your debts will be covered. Your resources can be better spent finding alternative work, recovering from injuries, or grieving a loved one, and not worrying about paying off debts.
Credit life insurance is a very particular type of insurance designed to cover your debts in the case of retrenchment, disability, or untimely death. It will protect your debts in the case of death, which is an important way of supporting your family’s financial future and giving them time to grieve. Whereas, if you become permanently or temporarily disabled, seriously ill or unemployed, this will help cover a portion of your repayments until you can resume payments without assistance.
Beyond keeping financial pressure off your loved ones, it allows them to keep your actual life insurance and hard-earned savings for their intended purposes. Let us cover a few more questions about credit life insurance and why it should be a significant financial consideration for you:
Do you need credit life coverage on top of your life insurance?
This depends on you, your family and what type of coverage you want to secure. If you have lived a very financially conscientious lifestyle, with no credit and no debt, then you might only need life insurance. However, if you are like the rest of us – and have opened credit, secured loans, and accrued some debt over the years – it is there to help support and protect your family’s future.
Families across South Africa have had to take money out of their loved one’s life insurance policies to help repay outstanding debts when the unthinkable happens. Getting credit life coverage means that your debts are paid. Therefore, family, partners or selected beneficiaries will not have to reach into their pockets to cover your outstanding debts.
Keep your life insurance money to secure your family’s financial future through obtaining credit life coverage.
What do credit life insurance policies cover?
Like with all insurance policies and coverage options, there are a variety of solutions to help suit your circumstances and needs. Depending on your credit life insurance type, you can cover outstanding debts and repayments on home loans, vehicle financing, credit cards, personal loans, and more. Different coverage options will suit different people based on their unique lifestyles and financial circumstances.
Understanding the terms and conditions of your credit life coverage is essential, so unexpected restrictions do not catch you and your family off guard. A wide range of credit life insurance options is customised to suit any applicant’s needs. By specifically designing the policy’s terms and conditions for you, you can ensure that your family has the coverage they require.
The point is that credit life insurance will help cover most kinds of debt and can support its beneficiaries in the event of retrenchment, permanent and temporary disability, or death.
Who do credit life insurance policies cover?
The purpose of credit life coverage services is to provide coverage to the beneficiaries when the individual takes out the cover. However, credit life insurance options can cover more than one person. Suppose you are married and you and your partner are in a community of property. In that case, you are both responsible for any accrued debt; therefore, both parties are eligible for coverage.
In essence, this extends to your family members, friends or significant others who will stand surety for your loan. Although their professional and personal circumstances are not covered, your credit life plan covers any debts or payments they are obligated to pay on your behalf. Keeping up to date on your specific policies, credit accounts, coverage limits and debts and repayments will help you get the best insurance for your unique circumstances.
If you are one of the many South Africans concerned about putting your family under financial pressure if the unthinkable happens, you need to consider investing in a credit life insurance policy.
Universal Insurance Administrators are at the forefront of South Africa’s Credit Life insurance for Credit Providers. We provide Credit Life cover to help ensure that all South African families can be covered in the event of death, disability, or retrenchment. Contact us today for more information about the products and services we offer at Universal Insurance Administrators.
