Assured Life offers premium

insurance services to South Africa

Assured Life offers premium

insurance services to South Africa

Frequently Asked Questions

What is credit life insurance?

Credit life insurance is insurance that repays your debt when you are unable to do so due to retrenchment, disability – or if you develop a serious illness and can no longer work.  Depending on your cover, your debt will either be paid in part, or in full to your creditors.

Credit life cover also covers your debts if you die. This means that the lump sum pay-out from a life policy does not need to be used to pay your debt.

Is credit life cover is mandatory?

In terms of the National Credit Act (NCA), credit life insurance cover is mandatory / required by law. A credit provider can rightfully insist that you have a credit life insurance for the duration of your credit agreement with them.

Many credit products such as credit cards, personal loans, vehicle finance and home loans are sold with credit life cover policies. The insurance premiums are included in your installment and the contracts are often signed together or are part of the credit agreement.

However, no credit provider may insist that the credit life insurance policy be held with them. You have the right to choose your insurer.

What is cost of cover?

The National Credit Act (NCA) states that a credit life policy must cover the consumer’s “total liability in terms of the credit agreement.

In terms of the NCA, a credit provider must disclose to you the “total cost of credit”

Credit Regulations published in 2017, the rate of Credit insurance is capped at R4.50 per month per R1 000 borrowed

Example: If you have borrowed R60 000, the maximum credit life insurance that you should be charged is R270 (R4.50 x 60) per month.

These regulations definitely protect consumers from being over-charged.

What is authorised financial services provider (FSP)?

Credit Life insurance cover is governed by the Long Term Insurance Act, it can be sold only by an authorised financial services provider (FSP), and as such the Financial Advisory and Intermediary Services (FAIS) Act applies. This Act governs the rendering of financial advice.

What is debt review?

We are able to structure an insurance package in conjunction with your current debt review process, and guarantee that in the event of your death, disability, illness or loss of income – your debt will be seen