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Credit Life

FREQUENTLY ASKED QUESTIONS

What is credit life insurance?

Credit life insurance is the most popular of long-term insurances, as it ensures that your debts will be paid off in the event of your death (and, depending on your plan, if you become disabled or are retrenched).

Credit life insurance or "customer protection insurance” is defined in the National Credit Act as the cover payable in the event of a consumer’s death, disability, terminal illness, unemployment, or other insurable risk that is likely to prevent the consumer from earning an income or meeting the obligations under a credit agreement.

Is it legal to switch cover?
Yes, absolutely. For more information.

Credit life insurance is a mandatory requirement in terms of the National Credit Act (NCA). While it is a requirement to have the cover in place, there is no prerequisite as to which provider the cover should be taken through and it’s a creditor’s right to choose who to insure through. As such, while creditors are required to have credit life insurance in place, they may switch cover without any repercussions.

Credit life insurance (also known as a Personal Protection Plan) is designed to cover the policy holder’s debts in the event of death, disability or retrenchment. Usually, at the onset of a loan agreement, the credit provider may insist that credit life insurance be taken, but it can also be established at the customer’s request and with the provider of their choice.

The NCA confirms that, while the credit provider may offer you this insurance, you have the right to obtain cover anywhere. The only requirements for a legal switch are that the new cover must offer the same or better benefits as the existing cover, and there can be no gap in cover (there can be no period of time where no credit life insurance is in place).
Am I going to be paying for this service?
You will continue to pay for credit life insurance, however, your monthly premium for the Clientèle Credit Life policy should be cheaper than what your credit provider charges, and the insurance premium payment will be made to Clientèle Credit Life via a separate debit order. Our assessment service is 100% free and you will not be charged either by us or your outgoing credit provider for changing credit life insurance policies.
Will this be an additional debit order?
Your previous credit life insurance would most likely have been included in your instalment payment to your credit provider, but by providing independent insurance through Clientèle Credit life  for all your credit products, there will be an additional debit order paid to  Clientèle Credit life 
How will I see my savings?
The instalment payment you pay to your credit provider should reduce by more than the cost of the credit life insurance premium which  Clientèle Credit life provides.
Is this a new policy?
Yes.
How does the process work?

  • Step 1: Identify yourself
  • Step 2: Check you meet qualifying criteria for our savings product
  • Step 3: Get an instant quote of what we estimate you're paying and how much we can save you
  • Step 4: Check that you're happy to accept our combined product to cover your various credit products
  • Step 5: Read some important information, and Accept
  • Step 6: give us your debit order details to ensure continuous coverage

What is happening in the background while I enter my details and follow the steps?
  • With your permission, we review your credit profile and use it to estimate how much we could be saving you on your credit life insurance monthly.
  • If you are satisfied with the savings, you provide us with a Client Authority Mandate to instruct your credit providers on your behalf. This allows us to interact with your credit providers.
  • You may also have to sign a complaint form in cases where credit providers insist on unnecessary branch visits.
  • We contact each of the respective credit providers with whom you have an account, cancel the existing credit life insurance and provide details of the Clientèle Credit Life insurance cover you have put in place to cover you in the event of your death, disability or loss of income through no fault of your own.
  • Where it is required, the policy is ceded to the respective credit provider and the benefit is paid directly to them, in an insured event.
  • We handle most of the paperwork on your behalf, and we keep you updated so you are informed of our progress.