What is credit life insurance?

Credit life insurance is a type of insurance that pays off a borrower's outstanding debts if the borrower dies, becomes ill or disabled, or loses their job, depending on the specific policy. This allows peace of mind for both the borrower and the lender, as it covers the loan in circumstances where the borrower is not able to.
Credit life insurance can typically pay out under the following circumstances:
1. The death of the policyholder.
2. Permanent or temporary disability that prevents the policyholder from earning an income.
3. Unemployment or loss of income, not due to misconduct.
However, it might not pay out if:
1. The policyholder has missed premium payments.
2. The policyholder lost their job due to misconduct.
3. The policyholder had a pre-existing medical condition not disclosed at the time of taking up the policy.
The insurance payouts typically go directly to the lender to settle the outstanding debt, and not to any family members or beneficiaries.
Providers of credit life insurance vary and may be offered by the lender providing the loan or through an independent insurance company. In South Africa, some of the providers include Old Mutual, ABSA, Nedbank, and other local insurance companies.
Remember, it's important to read and understand the terms and conditions of the policy so that you understand what is covered, what isn't, and what your obligations are as the policyholder! 💡💼

[@mrmatch01]

Lovely studio! Progress manifesting brighter. Thanx again for the 411

[@BluFinanceTV]

Fascinating video. Banks are doing their best to protect themselves and estate of their clients. Just that most clients forget about these policies deducting direct from their loans account. Keep creating the best content

[@NthabisengLetsatsi]

Super informative as always! Thank you

[@Bathos78]

Thank you for sharing I did not know 💐

[@redeemablesoul]

Nicollet please make a video on the different taxes that needs to be paid once both parents die..

[@michaelhlongwane697]

Mind blowing great information and we are learning a lot from you. Keep up the great work.

[@Ohole]

Nicolette please make a video on the company M5 Property Addicts they scammed me off money 😢and I am in Namibia 😢😢😢 they owe me a lot of money!!

[@simtha85]

Hips are getting undone🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣

[@Mogotsi_P]

and what about the end of the contract?

[@kgomotsodiale7355]

Would the insurance pay if one is to take a voluntary separation package.

[@SmallTalkNetwork]

Insurance companies don't pay in a case of Voluntary Retrenchment (you had a choice to stay).. it's only compulsory Retrenchment where they pay.

[@supafly8]

The insurance company took a risk to cover you for that period. If you don’t claim it doesn’t mean they did nothing. They still took the risk over that time and that’s what you paid for.. so no money back (not advice by the way- speak to a registered financial advisor)

[@sizwetraveladventures]

Ha ha ha. My kids are my retirement strategy

[@namhlabhenxa5487]

😂😂😂😂😂😂😂😂😂 "You've made too many kids"