In our guide today, we will discuss Absa overdraft insurance in South Africa.
An overdraft is a revolving loan loaded into your cheque account and gives you access to additional cash to cover any unexpected expenses.
Overdraft insurance is necessary to settle any outstanding debt in case of disability, chronic disease, loss of income, or death.
This cover guarantees that a cheque, ATM, wire transfer, or debit card transaction will clear if the account balance is at zero.
We will first show you the qualifying criteria for this cover.
Requirements For Absa Overdraft Insurance
You will get the Absa overdraft insurance if you meet the following qualifications:
- You need to be 18 years or older
- Get an overdraft of up to a limit of R150, 000
- For plan A cover, you must be earning an income
- For plan B, there is no income required.
These are the qualifying requirements for overdraft insurance in South Africa.
Absa Overdraft Insurance
Now that you know the requirements, we will show you the benefits of this insurance cover.
The cover will pay a monthly amount equal to 5% of an average outstanding balance on your credit facility if you become temporarily disabled or unable to earn an income.
You can make multiple claims for both temporary disability and loss of income.
The outstanding balance on your facility will be paid in the event of death, permanent disability, critical or terminal illness.
Plan A covers death, permanent and temporary disability, terminal and critical illness, and loss of income.
Plan B covers death, permanent and temporary disability critical, and terminal illness.
These are the benefits of overdraft insurance works in South Africa.
What To Note About This Policy
We will show you a few things to note about the Absa overdraft insurance.
When you choose this cover, you can link your Absa cheque account to credit cards, savings account, or other credit lines to avoid triggering an overdraft fee.
This cover also kicks in when an account holder withdraws money more than the current balance in a cheque account, and in that case, a linked account is charged a transfer fee (an amount) to facilitate moving funds to cover the shortfall.
You are charged an additional fee every month as premiums to the cover.
This is all you need to know about the Absa overdraft insurance in South Africa.
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