Look for an insurance premium in your credit agreement, quotation and monthly statements, then ask your credit provider to confirm in writing. Many people do not realise they have credit life because the premium is part of the monthly instalment.
Why it is easy to miss
Credit life is often arranged when you take the loan, and the premium is usually added to your monthly instalment. You may never see it as a separate payment. It can also be described as credit insurance rather than credit life insurance.
Where to look
- Your credit agreement and quotation. Before you signed, your credit provider should have given you a pre-agreement statement and quotation setting out the costs of the credit. Look for an insurance premium.
- Your monthly statements. Look for a line for insurance or a premium.
- Your lender’s app or online profile. Many have a section for insurance or policies.
- Your policy schedule or certificate. The insurer or lender may have sent it to you or emailed it.
- Your finance documents. For vehicle and home loans, check the papers you were given at the dealership, branch or bond signing.
What to ask your credit provider
- Do I have credit life insurance on this account?
- Is it required by my credit agreement, or optional?
- Who is the insurer?
- What is the premium, and how is it worked out?
- Which events does it cover, and what are the waiting periods and exclusions?
- Can you send me my policy schedule and the full policy wording in writing?
Section 106 of the National Credit Act requires a credit provider that proposes a policy to tell you about your right to use one of your own choice, and to be open about what the insurance costs.
If you find you have cover
- Check what it pays. See what is credit life insurance?
- Check what it costs. See how much does credit life insurance cost?
- If you do not want it, find out whether it is required. See is credit life insurance compulsory?
- If you want to compare, see can I replace my bank’s credit life insurance?
If you find you do not
Without credit life, the debt stays with you, your co-borrowers and your estate if something happens to you. Ordinary life cover does not automatically pay your debts. See credit life insurance vs life insurance.
Keep a record
Make a note of each debt, its credit provider, the insurer and the policy reference, and tell someone you trust where it is kept. Your family will need it to claim quickly.