Today’s guide will show you how Absa credit life work in South Africa.
We will first help you understand what a credit life is.
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What Is Absa Credit Life
This is an excellent insurance cover that protects your family from having to pay off your debts when you pass away or are not in the capacity to continue paying.
This should not be confused with life insurance at all.
The insurance covers a large loan and will cover the full debt.
We will now show you exactly how the cover works in South Africa.
How Does Absa Credit Life Work
The insurance covers all Absa personal loans, revolving loans, overdrafts, credit cards, and all other debts you have.
All the outstanding debts will be paid in the event of death.
Suppose it happens that you are unable to work due to a critical, terminal illness or disability. In that case, the bank will cover your monthly premiums and installments for a specific time.
Your student loan, for example, will be cleared fully if you pass away.
The insurance is a real value for money, and it is easy to claim.
The premiums for credit life are higher than those of regular covers because it is associated with greater risk.
When you pay the debt, the cost of insurance decreases, but the premiums will remain constant.
A personal loan of between R1 000 to R350 000 is covered with this insurance.
The policyholder holds the major risk.
Claiming for the insurance does not have to undergo a medical examination or share any medical history with the bank.
This is how Absa credit life works in South Africa.
What Are The Requirements
We will now show you the requirements to qualify for the insurance.
Here are the requirements to get an Absa credit life:
- First, you have to be above eighteen (18) years old.
- You need a South African ID or smart card
- An active Absa transactional account
- A loan with a viable credit agreement.
These are the important requirements to access an Absa credit life.
Now that you know what is required, we will show you the various agreements that are covered.
Which Loans Have A Credit Life
Below are the loans that have an option to insure with credit life:
- Personal loans
- Study loans
- Overdraft facilities
- Credit card
- Revolving loans
- Vehicle and asset finance
These are the Absa loans with credit life insurance.
This is all you need to know about how the Absa credit life work in South Africa.
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