Customers can obtain coverage for various types of debt through Nedbank credit life insurance, with coverage amounts ranging from R30,000.00 to R2.5 million.
The policy covers payments for outstanding loans and credit if the policyholder is laid off, becomes disabled, or dies. However, the product does not cover late payments or interest accrued as a result of missed payments. Additionally, the policy does not cover illegal or dangerous acts resulting in a covered incident.
It is essential to check the waiting periods on each plan when purchasing the policy, as some of the coverage options have a waiting period. Incidents that occur before the waiting period are not covered.
The plan provides a wide range of coverage options, including personal loan credit, overdraft, credit card balance, student loan balance, and vehicle finance credit. Some of these covers are discussed in greater detail below.
Nedbank Credit Life Cover Options
The Nedbank credit life insurance policy covers a wide range of debts that, if not insured, can put the deceased’s estate at risk. The plans are suitable for anyone who has a form of credit because the insurance product covers nearly all types of credit in South Africa.
Nedbank credit life insurance offers the following plans:
MFC Vehicle Finance Assurance
The MFC Vehicle Finance assurance covers a vehicle financed by MFC for up to R1 million. The plan pays out if the policyholder becomes permanently disabled or dies. If the policyholder dies, the MFC vehicle finance assurance plan pays out the outstanding balance at the time of death, but arrears and interest on the MFC loan account are not included.
Retrenchment receives up to six months of payable installments, but arrears or unpaid interest are not covered by the insurance policy. The plan also covers temporary disability and pays a portion or the entire monthly installment if the policyholder has lost income. The plan covers permanent disability and pays monthly installments or a portion of it.
When a policyholder is diagnosed with a critical illness, the MFC vehicle finance assurance pays a payment to the policyholder’s MFC vehicle account. Critical illness insurance pays the outstanding balance at the time of death, less any arrears and interest accrued on arrears.
The plan has a three-month waiting period for retrenchment, and coverage begins on month four after subscribing to the plan. A 12-month waiting period for pre-existing conditions is also available, with coverage for pre-existing conditions starting in month 13 after subscribing to the plan.
Some exclusions apply to the MFC vehicle finance assurance, preventing the policyholder or beneficiaries from making a valid claim. The following are the exclusions from the MFC vehicle finance assurance policy:
MFC Vehicle Finance Assurance Exclusions:
- Debt incurred or withdrawn after the claim event.
- Any payments, fees, or interest that are not directly related to your vehicle loan.
- A pre-existing medical condition or illness that causes death or permanent disability before the waiting period lapses.
- Death or permanent disability as a result of self-inflicted injury, suicide, active military service, or criminal activity.
Personal Loan Assurance
The Nedbank personal loan assurance is a personal loan insurance cover that covers a personal loan up to a maximum value of R300,000.00. If the policyholder is laid off, becomes disabled, or dies, the plan pays out.
If the policyholder is laid off, personal loan assurance will pay up to 12 loan installments. The retrenchment benefit has a three-month waiting period. The retrenchment benefit is activated 4 months after joining the plan.
When the policyholder becomes disabled or dies, the policyholder’s outstanding personal loan is covered up to a maximum of R300,000.00. There is a 3-month waiting period for disability and death insurance.
The plan covers pre-existing conditions; however, there is a 12-month waiting period before coverage begins. Pre-existing conditions are scheduled to begin in the 13th month after the subscription.
The product provides policyholders with value-added services at no extra cost. Home assistance is one of the plan’s value-added services, which provides policyholders with emergency household repair assistance.
The plan covers trauma counseling up to a maximum of R5,000.00. The policyholder is covered for medical expenses up to R5,000.00 under the plan. Nedbank personal loan assurance also provides HIV support of up to R5,000.00 at no extra cost.
Legal advice, consultation, and drafting of legal documents are provided by the plan. A personal health advisor is also available to provide counseling, medical advice, assessments, and more.
The Nedbank personal assurance plan has a number of exclusions that are covered below.
Nedbank Personal Assurance Exclusions
- Any payments, fees, or interest that are not directly related to your personal loan.
- A pre-existing medical condition or illness that causes death or permanent disability.
- Death or permanent disability as a result of self-inflicted injury, suicide, active military service, or criminal activity.
Nedbank Overdraft Assurance
A Nedbank overdraft assurance plan is an insurance policy for an overdraft facility that provides up to R50,000.00 in coverage. The plan covers issuing a payout towards an overdraft should the policyholder get retrenched, become disabled, or pass away.
There is a 6-month waiting period for retrenchment coverage. When a policyholder is laid off, the plan will pay a maximum of 10 monthly installments of an overdraft facility. The payment for a retrenchment overdraft facility has a maximum cover amount of R30,000.00.
Disablement has a 6-month waiting period after purchasing the plan. When the policyholder is permanently disabled, the plan pays out up to R50,000.00 of the overdraft facility credit.
The plan also covers temporary disability, with a 6-month waiting period. If the policyholder becomes temporarily disabled, the temporary disability benefit will repay installments toward an overdraft facility for up to 6 months. The benefit provides up to R50,000.00 in coverage.
The death benefit is subject to a 6-month waiting period, and only deaths occurring on the 7th month and onwards are covered by the plan. If the policyholder dies, the death benefit pays up to R50,000.00 towards an overdraft facility.
There are no medical tests required when applying for the Nedbank overdraft assurance plan. Furthermore, filing claims is simple and can be done remotely.
The plan has some exclusions which are listed below:
Nedbank Overdraft Assurance Exclusions
- Debt incurred or withdrawn following the claim event.
- Any payments, fees, or interest charges that are not related to your overdraft facility.
- Pre-existing medical conditions or illnesses that cause death or permanent disability.
- Death or permanent disability resulting from self-inflicted injury, suicide, active military service, or criminal activity.
Nedbank Balance Protection Plan
The Nedbank balance protection plan offers protection against credit card debt and has a maximum cover amount of R100,000.00. Balance protection plans protect the policyholder if they are laid off, become ill, become disabled, or die.
On the balance protection plan, retrenchment comes with a 6-month waiting period. The plan covers up to 6 months of credit repayments and does not cover any arrears. The retrenchment benefit has a maximum cover amount of R20,000.00.
Permanent disability provides the most coverage, with a cover of up to R100,000.00. However, a 6-month waiting period is required before filing a claim for permanent disability. The plan pays the balance of the policy-insured credit card debt.
Temporary disability has a 6-month waiting period before becoming active on the 7th month after enrolling in the policy. If the policyholder becomes temporarily disabled, the plan will pay a maximum of 6 monthly credit card payments.
There is a 6-month waiting period for critical illness and death benefits. Should the policyholder die or become critically ill, the plan will pay up to R100,000.00 of the outstanding balance on the covered credit card debt.
Pre-existing conditions are also covered by the balance protection plan, but there is a 12-month waiting period. The payout for preexisting conditions will be determined by the outcome of the condition, and an appropriate payout will be made for any covered incident.
The plan has a number of exclusions that result in invalid claims. These exclusions are listed below:
Nedbank Balance Protection Plan exclusions:
- Debt incurred or withdrawn following the claim event.
- Any payments, fees, or interest charges that are not related to your overdraft facility.
- Pre-existing medical conditions or illnesses that cause death or permanent disability.
- Death or permanent disability resulting from self-inflicted injury, suicide, active military service, or criminal activity.
Nedbank Home loan Credit Life
Home loan credit life insurance is an insurance policy that covers the credit taken out for a home loan and covers the home loan credit for up to R2.5 million. The insurance product provides a death benefit and ensures that the outstanding balance on a home loan is settled.
The death cover on the plan covers up to R2.5 million, and the amount of cover is payable to the loan account when the policyholder dies. There is no waiting period for the death cover, and it is covered immediately. The policy also comes with up to 3 months of free accidental death cover.
Pre-existing medical conditions that lead to death are covered by the plan. However, pre-existing medical conditions have a waiting period of 24 months. According to the policy, pre-existing conditions are covered from the 25th month of taking out the policy.
The plan also covers permanent disability and provides a payout if the policyholder becomes permanently disabled. There is no waiting period for permanent disability because the benefit is activated as soon as the product is purchased.
To make life easier for the policyholder, the policy provides additional benefits at no additional cost. A home assist benefit is included in the plan, which provides the policyholder with emergency household assistance for repairs as needed.
The plan includes legal services such as advice, consultation, and the drafting of legal documents. A personal health advisor is also available to provide counseling, medical advice, assessments, and other services to policyholders.
The plan includes free trauma counseling, HIV support, and medical coverage. Each of these benefits is insured for R5,000.00.
Aside from benefits, the plan has its own exclusions, which are listed below.
Nedbank Home Loan Credit Life Exclusions
- Debt incurred or withdrawn following the claim event.
- Any payments, fees, or interest charges that are not related to your overdraft facility.
- A pre-existing medical condition or illness causes death or permanent disability.
- Death or permanent disability as a result of self-inflicted injury, suicide, active military service, or criminal activity.
Advantages of Nedbank Credit Life insurance
- Many debts can be covered under the insurance product.
- All plans can be purchased remotely without visiting a Nedbank branch.
- Claims are easy with all the required documents to make a claim listed on each plan and can be done online.
- There is no excess payment required when making a claim under the insurance.
- Legal services are available for free on some plans.
- The death benefit doesn’t come with a waiting period.
- Premiums on the policy decrease as the loan amount decreases.
- Cover for pre-existing medical conditions is included on some plans.
- There are no medical tests needed when taking out the policy.
Disadvantages of Nedbank Credit Life Insurance
- There is no cashback benefit when the policyholder is claim-free.
- All plans do not allow policyholders to have add-ons.
- There are no Greenbacks rewards when paying up premiums.
Conclusion
The Nedbank credit life insurance provides credit facility holders with the opportunity to protect various types of credit. The insurance product’s plans are well-diversified and cover a wide range of debt, from credit cards to student loans.
Getting started with the product is easy, and subscriptions can be done online. The most significant benefit of the plan is that premiums on each plan are reduced when loan repayments are made. However, there is no cashback available with this product.
