C
Insurance
Credit Life Insurance
This insurance covers your loan if something bad happens — death, disability, retrenchment, illness. If you die, it pays off the outstanding balance so your family isn't stuck with the debt. The NCA says lenders can require it but you can use your own insurer instead of theirs.
Usage Examples
"Bongani took out a R60,000 personal loan from Capitec. The credit life insurance cost R95 per month, but when he was retrenched from his Joburg job, the insurance paid off the full R45,000 balance still owing. Without it, he'd have been in deep kak."
"Thandi's Nedbank loan included credit life insurance at R78 monthly. She worked as a nurse in Durban — high-risk environment in her bank's eyes. When she got diagnosed with cancer, the insurance kicked in and cleared her R30,000 balance."
"Andile got life insurance through his own broker instead of using Wonga's offer. His insurer's premium was R52 per month versus Wonga's R89 — same cover, less moola out of his pocket. That's what the NCA allows."