With the 21-day national lockdown in full swing, many South Africans have been unable to earn an income while others are receiving little to no income with the reduced working hours.
Nomsa Motshegare, CEO of the National Credit Regulator (NCR) advised consumers that, where applicable, they first consider the option of using their credit life insurance benefit as relief in this difficult period.
“A credit life insurance is an insurance that a consumer signs up for when applying for a credit or a loan and it covers the outstanding debt in the event of unforeseen circumstances such as death, retrenchment, unemployment, inability to earn an income, disability and others,” said Motshegare.
Motshegare advised that in the event of the consumer becoming unemployed or unable to earn an income, the credit life insurance cover provides that credit providers must settle/pay the consumer’s debt for a period of 12 months or for the remaining repayment period or until the consumer finds employment or is able to earn an income, whichever period is shorter.
“Many consumers may not be aware that they have credit life insurance in place and that the premium for this insurance is already included in the cost of credit. To check if this insurance is in place, consumers must contact their credit providers and, where applicable, consider use of this benefit to provide relief,” concluded Motshegare.
Related article:
https://northeasterntribune.co.za/262034/make-responsible-financial-decisions-21-day-lockdown-period/
