What is credit life insurance?
Credit life insurance is a policy linked to a specific loan. If the borrower dies or becomes permanently disabled during the loan term, the policy pays the outstanding balance directly to the lender, so the debt doesn't pass to their family, estate or business partners.
Lenders often require it as a condition of the loan. Arranging it through an independent broker means you can compare terms from several insurers rather than accepting the lender's default policy — and often pay less for the same protection.
Cover options we arrange
- 01
Death cover
Repays the outstanding loan balance if the borrower dies during the loan term.
- 02
Permanent disability
Settles the loan if illness or injury leaves the borrower permanently unable to work.
- 03
Retrenchment cover
Meets loan instalments for a set period if the borrower loses their job involuntarily.
- 04
Lender group schemes
Portfolio cover for banks, microfinance institutions and credit providers, covering every borrower under one policy.
For borrowers, credit life cover means a loan never becomes a burden for the people left behind. For lenders, it protects the loan book and keeps conversations with grieving families compassionate rather than adversarial.
Who it’s for
- Home buyers with a mortgage
- Business owners with commercial loans
- Vehicle & asset finance borrowers
- Banks & microfinance lenders
- Credit unions & employers
Typically not covered
- Pre-existing conditions in the first 12 months
- Self-inflicted injury in the first 24 months
- Voluntary resignation, under retrenchment cover
- Loans already in arrears when cover starts
Exact terms vary by insurer. Your broker will walk you through every exclusion before you buy.