Credit Life Insurance is a type of insurance, often bought by borrowers, in which the amount of the policy matches the loan balance at any given time; designed so that the loan will be paid off in full in the event of unforeseen events. Compuscan, in collaboration with Real People, offers this valuable product to credit providers.
The National Credit Act allows credit providers to add insurance as part of their loan agreement. Most borrowers do not have their own credit life insurance and credit providers can sell it as part of their loan products. The insurance premium is simply added to the principal debt and will become part of the monthly installments of the borrower.
Features:
Death Cover :
Outstanding loan amount up to R10 000
Disability Cover :
Outstanding amount up to R10 000
Retrenchment Benefit :
Upto 6 months loan instalments
Monthly Premium Rates :
1% of capital borrowed paid monthly
Waiting Periods and Exclusions:
Benefit
Exclusion
Pre-existing Conditions
Waiting Period
Death Benefit
War, Riot, Suicide
No
No
Total Disability Benefit
War, Riot, Suicide
Yes
6 Month
Retrenchment Benefit
*See exclusions
6 Month
No benefits shall be payable in respect of retrenchment claims if any of the following apply:
The insured’s death claim was paid
The insured has not been in full time employment for the 6 (six) months immediately before the notification date of retrenchment or having had reasonable grounds to believe that he/she would become unemployed, retrenched or redundant after the commencement date of cover
The insured is self employed, work was seasonal, or unemployment is a regular feature of his/her work
The insured comes to the expected end of a fixed-term contract, the expected end of and/or the early termination of a casual, temporary or work contract
The insured finishes the job he/she was specifically employed to do, resigns, retires, accepts voluntary retrenchment
The insured is a partner in a partnership, a member of a Close Corporation or a director of a company Services, or employed by a family-owned business
The insured loses his/her job due to fraud, dishonesty or any misconduct on his/her part, has received one or more verbal or written reprimands which constituted to form part of this disciplinary procedure
The insured loses his/her job because of any illegal strikes, which he/she took part in or any lock out by his/her employer
The insured loses his/her job, directly or indirectly, due to any sickness, disease, accident, injury, childbirth, abortion, pregnancy, miscarriage, mental disorder or medical condition.
Benefits:
By making Credit Life part of your loan product, you not only protect your business against unforeseen losses, but you also protect your client’s family from inheriting major debt.
You earn commission of 25.65% on the Credit Life premiums for every client that signs up for the product.
You will experience increased profitability with the benefit of security.
How do you sign up for Credit Life?
Credit Life Insurance functions through Proloan, Compuscan’s Loan Management system.
If the credit provider is already an existing Proloan client they can sign up for Credit Life Insurance with ease through a quick set-up process.
Credit Life Insurance will be linked to their specified loan products through a simple set-up procedure and the required insurance documentation will be printed with the credit agreements whenever a borrower applies for a loan at their institution.
The commission claims process is also simplified since Proloan will automatically send a list of all your insurance transactions to Real people on a monthly basis.
The Claim Process:
Originals or certified copies of originals must be submitted to Real People Head Office.
Death & Disability claims will be paid to you as a lump sum.
Retrenchment claims get settled monthly as the premiums become due.
Should you wish to sign up for this value adding functionality or if you would like to know more about it, please do not hesitate to contact us at Tel: 021 888 6000 or info@compuscan.co.za
