In February 2017 the National Credit Act was amended and new regulations set.
Liberty has developed a Credit Life package, which adheres to the regulations of the NCA.
Credit Life Assurance is taken out by you in favour of your debt provider in the event that you are unable to meet your payments due to death, disability, critical condition or unexpectedly finding yourself unemployed. It is there to protect the financial institution from whom you obtained the loan and makes it easier for you to be approved for credit, as the debt provider does not have to take on the risk of unsettled debt.
Who is the product aimed at?
Anyone who understandably makes use of various lines of credit and incurs debt while supporting a family, educating children, investing in a home or a set of wheels, and generally living a normal life. Credit Life Assurance will also give your debt provider peace of mind, knowing that despite your death or disability, your debt will be settled. In the event of your death, any benefits that are payable to your dependants, for example life insurance, are not eroded by outstanding debt.
Features of the product:
- Credit Life Assurance will ease the burden of paying your loans in the event of death, permanent disability, critical condition or unexpected retrenchment. A lump sum will settle your full outstanding debt.
- Cover is also provided if you become temporarily disabled or retrenched, to give you a period of grace while you are getting back on your feet. This would cover your monthly instalments due during the period of disablement or unemployment. Instalments are paid directly to the credit provider.
View the brochures for more information:Loan Protection Plan Loan Protection Package Q&A