Absa Credit Life Protection Review 2024

Absa Credit Life Protection is an insurance policy that protects a person’s credit if they become permanently or temporarily disabled, […]

Absa Credit Life Protection

Absa Credit Life Protection is an insurance policy that protects a person’s credit if they become permanently or temporarily disabled, critically ill, lose their job, or die. The plan is available to anyone who has taken out a loan and is at least 18 years old.

Should an insured occurrence happen, the plan will pay the credit in full. The plan requires a monthly premium, which varies depending on factors such as credit limit, age, and other underwriting factors.

Personal loans, student loans, credit cards, revolving loan facility, overdraft facility, vehicle, and asset finance can all be covered by Absa Credit Life Protection.

The plan aids estate planning by preventing assets from being liquidated to cover debts owed by the deceased, among other things.

We cover all of the credit agreements that are eligible for Absa Credit Life Protection below.

What Absa Credit Life Protection Covers

Absa covers different types of 6 credit agreements and other assets that are financed. Below we go into each credit agreement that the plan covers in detail.

Personal Loans

Absa Credit Life insurance can cover personal loans. The plan covers Absa personal loans with credit limits ranging from R1,000.00 to R350,000.00.

The plan provides two types of credit life insurance coverage: Plan A for those who are employed and Plan B for those who are not employed.

Plan A is a policy that protects you against death, permanent disability, temporary disability, terminal illness, critical illness, and loss of income. If one of the covered incidents occurs, the plan settles the personal loan account.

Death, permanent disability, temporary disability, terminal illness, and critical illness are all covered under Plan B. This plan does not cover income loss because it is designed for those who are not employed.

Both plans permit policyholders to file multiple claims for temporary disability and income loss. If you are unable to earn an income due to temporary disability, the plan will cover monthly installments on your personal loan for a limited time.

Student Loans

Absa Credit Life Protection insurance covers Absa student accounts and is only available to those who are 18 years or older. The student loan that can be covered by the plan must be worth at least R15,000.00.

When taking out the cover, individuals will qualify as either Plan A or Plan B qualifiers. Death, permanent disability, temporary disability, terminal illness, critical illness, and income loss are all covered under Plan A.

Death, permanent disability, temporary disability, and critical illness are all covered under Plan B. Plan A is for employed people, while Plan B is for unemployed people.

Absa Credit Life Insurance only covers the sponsor, whether or not the sponsor is a student. If a sponsor is involved in one of the covered incidents, the insurance will pay the outstanding balance on the student loan.

Overdraft Facilities

The Absa Credit Life Protection Cover provides overdraft facility coverage up to R150,000.00. The plan pays a monthly amount equal to 5% of the facility’s average outstanding balance.

Those who are employed are directed to Plan A, which covers death, permanent disability, temporary disability, terminal illness, critical illness, and income loss.

Plan B covers those with no known source of income for death, permanent disability, temporary disability, terminal illness, and critical illness.

Credit Cards

Absa Credit Life Protection covers the use of an Absa personal credit card with a credit limit of up to R150,000.00. If the insured becomes temporarily disabled or unable to earn an income, the plan will pay 5% of the outstanding balance monthly for a limited time.

The policy is divided into two plans, the first of which is for people who are permanently employed and under the age of 63. Plan A includes coverage for death, permanent disability, temporary disability, critical illness, and income loss.

Those who are not fully employed or are over the age of 63 are covered under Plan B. The plan includes coverage for death, permanent disability, temporary disability, and critical illness.

Revolving Loan

Absa Credit Life Protection covers Absa revolving loan facilities with a credit limit of up to R200,000.00.

The policy allows for multiple claims for temporary disability and income loss. If a person is unable to earn an income or is temporarily disabled, the plan will pay a monthly amount equal to 5% of the average outstanding balance of the revolving facility.

Credit life insurance for revolving loans is available in two plans: A and B. Plan A covers death, permanent disability, temporary disability, terminal illness, critical illness, and income loss, whereas Plan B covers all other occurrences except for income loss.

Vehicle and Asset Finance

Absa credit life protection covers credit on vehicle finance. The plan makes a payout should the principal insured become temporarily disabled or unable to earn an income.

There are 4 plans to choose from, which include:

Plan A: covers death Plan B: covers death, permanent and temporary disability Plan C: covers death, permanent disability, temporary disability, and dread disease Plan D: covers death, permanent disability, temporary disability, dread disease, and loss of income.

The plan that one chooses will have an impact on their premiums.

Advantages of Absa Credit Protection

  • Absa Credit Life Protection provides cover for a number of credit facilities.
  • The cover offers different plans under each credit agreement.
  • There is credit protection on student loans. Claims are easy and can be done online.
  • The death benefit pays the whole credit limit on a loan account.

Disadvantages of Absa Credit Protection

  • Self-employed individuals may find it hard to get insured for loss of income.
  • Temporary disability doesn’t qualify for a fully credit limit settlement.

Absa Credit Life Protection Application

  • One must be 18 years or older at the time of application.
  • One must have a valid South African ID book or Smart card.
  • One must have a qualifying credit line.

Conclusion

Absa Credit Life Protection offers a way to secure your debt should anything happen to you. The cover clears your debt should you get critically ill, become permanently disabled, or become terminally ill. Loss of income can only be covered for a specific period of time while you get back on your feet.