In our guide today, we will show you how the Absa debt insurance works in South Africa.
This insurance covers all your debts in the event of death, disability, chronic illness, or loss of income.
Your family will not have to struggle with paying off your debts when you are no longer there.
The Absa insurance protects you and your family from losing all you worked hard for.
We will show you the requirements to apply for this cover.
Requirements For Absa Debt Insurance
You must be 18 – 60 years old to qualify for the cover.
You need to be a South African with a valid national ID, smartcard, or passport.
You need to have one of the following Absa debts:
- Personal loans
- Evolving loans
- Overdrafts
- Credit cards
These are the basic requirements to actually qualify for the Absa debt insurance in South Africa.
Features Of The Debt Policy
With this cover, you get limited-term insurance with an option to convert it to a whole life policy.
You do not need a medical examination to qualify for this insurance.
Immediately the policy becomes effective, you can go ahead and claim the cover.
You don’t need to account for the debt settlement during estate planning.
The designated monthly premiums will not change during the cover term as they are fixed.
These are the features of the Absa debt insurance in South Africa.
Absa Debt Insurance
If you cannot work due to a disability or terminal disease, the insurance will cover your monthly premiums and installments for a specific time frame that you are insured.
The loan is cleared if the policyholder passes away or is permanently disabled.
There are different credit plan options that you can choose from.
Below are the Absa credit plan options for debt insurance:
- Plan A covers only death, and the maximum sum assured is R1 million.
- Plan B covers death and disability, and the maximum amount assured is still R1 million.
- Plan C covers death, disability, and dread diseases and the maximum amount assured is R1 million.
- Plan D covers death, disability, dread disease, and retrenchment and the maximum amount assured is R1 million.
- The platinum protection covers death, disability, retrenchment, and accidental death and offers a maximum of R750 000.
- The taxi protection covers death, disability, and dread diseases with a maximum assured R500 000.
This is all you need to know about the Absa debt insurance in South Africa.
