How can you find the right fit for credit life insurance?

Aug 02, 2018

In our pursuit of helping South Africans make better financial decisions, we're happy to share great articles like these from our friends over at Switch2.Make sure you check out their solution and give them a follow!

CREDIT LIFE INSURANCE: FINDING THE RIGHT FIT

Consumers often feel like they’re drowning in the murky waters of credit life insurance. The worst part of it is that some people don't even know they are paying this on their credit. Insurance in general can become confusing. Finding the right cover for your unique requirements can present a challenge – and finding a provider that won’t overcharge you may seem impossible.

The lack of knowledge could dissuade consumers from looking into their credit cover, even though it is critical insurance. Credit cover offers protection in the event of death, disability, retrenchment, or (in certain cases) pregnancy. Most credit providers build credit life insurance into their loan repayments or credit instalments – but remember, you have the right to choose who you take this cover through!

It’s time for consumers to take back control of their financial health. To do this they must know their rights and understand what a good insurance fit looks like.

Here are the top 5 considerations before signing on the dotted line

1. Does the insurance provider have your best interest at heart?

Choose a provider that doesn’t load every interaction with Ts and Cs that effectively make the cover useless.

2. Are you adequately covered?

Being underinsured creates a false sense of security and leaves the insured or their family with a shortfall when the time to claim comes.

3. Is the provider reputable and will they pay out on time?

Credit providers are often impatient when it comes to missed instalments and delayed payments. Choose an insurance provider that is a well-recognised, registered financial services provider and manages claims in a timeous manner.

4. Are there any hidden catches?

Scrutinise the small print and make sure you know what your cover entails, if there are any loopholes or anything that could prevent you from claiming in the future.

5. Are you paying competitive rates or are you being overcharged on your premium?

Credit life insurance was previously unregulated, leaving providers to their own devices when determining the value of cover. Make sure you’re signing with a provider that offers reliable service and decreases your premiums as the capital credit is paid off.

Contact Switch2 Credit Life for reliable, affordable and trustworthy cover.

Switch2 is a division of Clientèle Life Assurance Company Limited, an authorised financial services provider and registered insurer, FSP No. 15268. For terms and conditions visit www.switch2.co.za. This article and its contents do not constitute financial advice.

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