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Insurance

Capitec Bank affordable credit insurance

Capitec Bank offers its client an affordable credit insurance to all customers who are taking a loan or a credit card as from May 20 2020, Capitec Bank affordable credit insurance is compulsory but if you have your own insurance you can provide the information of your credit insurance to capitec bank so that you can get covers for unforeseen circumstances.

What does the Capitec Bank credit insurance offer?

The Capitec Bank credit insurance underwritten by Guardrisk and works based on your employment status and when you get a loan you will get the below benefits.

  • Your credit insurance premium will decrease as the value of your loan decreases
  • Available up to the age of 65
  • The claims process is simple
  • No paperwork is required when applying
  • Insurance contract is available immediately

How does the Capitec Bank credit insurance work

Capitec Bank credit insurance is designed to help you with your debt just in case you find your self out of the job and you can not prepay the loan, it will come into effect when you claim and inform Capitec Bank on you situation that you are out of work.

The below circumstances can happen to any one in South Africa, but when this happens make sure that you are cover, they will then pay you and cover the debt on your behalf;

  • When death occurs: the full outstanding amount will be paid
  • When you get permanent disability: the full outstanding amount will be paid
  • When you are temporary disability – a maximum of 12 instalments
  • Unemployment, the inability to earn an income other than as a result of disability or retrenchment – a maximum of 24 repayments (3-month waiting period for retrenchment or termination of employment)

What are the conditions for Capitec Bank not to pay the Capitec Bank credit insurance payout

If you become unemployed or unable to earn an income for reasons other than temporary or permanent disability, no benefit will be payable as a result of;

  • Retrenchment of which you were aware of or received notice of within a period of 3 months from the entry date of your policy
  • Participation in an unprotected strike
  • Retirement
  • Resignation
  • Voluntary retrenchment or termination of employment
  • Voluntary forfeiture of salary, wages, or other employment income

So before taking a loan please ask the consultant of the bank if they do offer credit insurance so that you can protect you self for the future.

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Insurance

Why is the Personal Loan Customer Protection Plan Important?

The personal loan customer protection plan is very vital especially when you are taking any form of credit whether it is an overdraft, revolving credit loan, student loan or personal loan, according to the nichemarket.co.za website there are about 6 million South Africans who are currently blacklisted, so the customer protection plan protect you from getting blacklisted in the event that you can not repay your credit, this maybe due to a number of reasons such as being retrenched from work or temporarily disabled.

Life is not predictable and anything can happen such as losing your job and other factors that could make you be unable to repay your credit or loan, so it is advisable to ask your service loan or credit provider if they do offer their customers a credit customer protection plan, if they don’t you might be tempted to take the loan or credit provided, but it is wise to think about the future and protect your self, rather take credit to a provider that offers the protection plan.

Who provides customer protection plan

Most of the credit providers are under written by the actual insurance providers, for example Capitec Bank is under written by guardrisk. Just to name a few companies that do provide the customer protection plan:

  • Capitec Bank: credit insurance
  • FNB: Debt protection plans
  • Sanlam: Credit Life Cover
  • Old Mutual Finance: Credit Life Insurance
  • Nebank: Personal loan insurance
  • Standard Bank: Loan Protection Plan
  • Direct Axis: Personal Protection Plan
  • RCS: Customer Protection Insurance
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