Credit life insurance has become one of the most essential types of insurance in the world. With Sanlam’s addition of credit life insurance to its personal product line, it has become evident that credit life insurance is a product to be reckoned with.

The Sanlam credit life cover protects the policyholder and his or her family against unpredictable insured events. The insurance policy can be used to pay off other loans, but its main benefit is that it allows people to continue enjoying their lives without worrying about debt if a covered incident occurs.

When buying something on credit, credit life insurance may be required, and the premiums for this type of insurance are low. Sanlam on the other hand, will charge even lower rates for this product. This is due to the fact that Sanlam is one of South Africa’s most affordable insurers.

The Sanlam credit life insurance application can be done entirely online. After the applicant accepts the quotation and the contract terms, coverage on this loan is immediate.

If you want to protect your credit and have your credit life insurance act as collateral for your loan, Sanlam’s Credit Life Cover is one insurance option to consider. The product has a series of benefits, which are detailed below.

The Benefits of Sanlam Credit Life Insurance 

1. Acts as a death cover

Sanlam credit life cover is purchased to cover loans and covers the amount borrowed at any given time. The policy can be used as a death benefit against the loan. As a result, if you take out a home loan, you can cover the cost of the loan with a Sanlam credit life insurance policy.

The policyholder’s household members can file a claim against the Sanlam Credit Life cover if the policyholder dies. If the transaction is successful, Sanlam will make appropriate payments to the loan account that has been designated as a beneficiary. A successful claim will result in a payout within a few hours.

This loan is intended to protect the estate of the deceased if he or she passes away while the loan contract is still open. Since the money owed for a loan will be paid out, the deceased estate will be unaffected. If the credit life protection was obtained to cover a loan, the policyholder’s family can keep the asset, such as a house or car.

2. Security for loans if permanently disabled

One would wish to get a loan so that if they are unable to work due to a permanent disability, their existing loan can be paid in full. One such policy is the Sanlam credit life cover, which protects the policyholder if he or she becomes permanently incapacitated.

A permanent disability occurs when an insured person is no longer able to work. This means that any injury or catastrophic disease that renders a person incapacitated is considered a lifelong injury. If the primary policyholder becomes permanently disabled, Sanlam will repay the entire sum.

In South Africa, the Sanlam credit life cover can be used to secure any sort of loan. Premiums for the insurance product will differ per loan product covered by the insurance product. 

3. Secure loans for temporary disability 

Anyone might experience a temporary impairment, and injuries can occur at work or at home. You should get credit life insurance to protect yourself if you become temporarily disabled. Sanlam’s credit life cover provides coverage for any sort of loan, including home loans.

Temporary disabilities are not supposed to last indefinitely, thus one must eventually be healed. When a person is temporarily disabled and unable to work, Sanlam ensures that they receive a loan repayment break.

If a policyholder becomes temporarily disabled, Sanlam will make payments to their loan account for a period of 12 months. The payments can, however, continue until the loan term ends or the life insured recovers from the disability.

4. Pay loan when retrenched

Whether you are good at your job or not, you can face retrenchment. If a person goes into retrenchment and fails to make loan repayments, a court order will be filed against him or her, and his or her property will be attached to cover the outstanding debt.

To avoid this, take out a credit life insurance policy to protect against retrenchment. For a period of 12 months, Sanlam credit life insurance will cover any loan and make payments to the loan account designated as the beneficiary.

The beneficiary loan account can be repaid until the loan term expires or until the policyholder finds new employment. Self-employed individuals cannot be protected by Sanlam’s Credit Life insurance.

Advantages of the Sanlam Credit Life cover 

• In South Africa, the Sanlam credit life insurance can cover a variety of loan types.
• In many situations, the loan product covers the life insured.
• If an insured event occurs, policyholders will not have to make any financial changes as their credit will be paid up.
• The insurance product’s premiums are competitive.
• The deceased’s estate will not be used to repay existing loans.
• The insurance package compensates for part or all of the outstanding loan amount if you are laid off or temporarily disabled.
• If the life insured is permanently incapacitated, the insurance product pays out the entire outstanding loan amount.

Disadvantages of the Sanlam Credit Life cover 

There is no option for a cash-back benefit.

There is no way to join the Sanlam Reality rewards program, which offers members exclusive discounts.

Conclusion 

Sanlam Credit Life insurance allows individuals to secure their existing loans at a low premium. Premiums for secured loans will vary depending on the type of loan and the amount secured. As a result, security for house loans is likely to be more expensive than on personal loans.