How Does a Capitec Bank Loan Insurance Protect the Consumer?

Do you ever think about what will happen in a case where you lose your job and can no longer afford to pay back the loan? Capitec bank offers loan insurance to protect you as a client in an event when you become unemployed due to retrenchment or inability to earn an income as a result of disability, death, and permanent or temporary disability.

How does Capitec credit insurance work

Capitec credit insurance is underwritten by Guardisk. All clients with loan terms for over 7 months are obligated to take the insurance cover however the good thing is that you can provide Capitec with an alternative policy of your choice which must meet Capitec’ s minimum requirements.

The insurance cover will be based on your employment status. The cover is available for clients’ age up to 65. Once you apply you will be covered immediately, meaning there is no waiting period. The application as well as claims process is simple with no paperwork required. Lastly when the value of your loan decreases, your credit insurance premium will also decrease.

The credit insurance payout in the case of:

  • Death – your outstanding amount will be paid in full
  • Permanent disability – a full outstanding amount
  • Temporary disability – a maximum of 12 instalments

In a case of unemployment, the inability to earn an income other than as a result of disability or retrenchment you will receive a maximum of 24 repayments and 3-month waiting period for retrenchment or termination of employment.

What to note before applying for Capitec credit insurance

Before applying for the insurance it is crucial to understand the insurance terms and conditions this includes restrictions, limitations, waiting periods and exclusions. The credit insurance does not apply in a case where you become unemployed or do not receive income due to other reasons beside temporary or permanent disability, you were lawful dismissal, including dismissal due to of deliberate misconduct that is a violation of some established, definite rule of conduct, a forbidden act, deliberate dereliction of duty, or misconduct.

Furthermore voluntary forfeiture of salary, wages, or other employment income, voluntary retrenchment or termination of employment, also when you resigned or retired. For more exclusions of the credit insurance and the minimum requirements for an alternate credit insurance policy click on https://www.capitecbank.co.za/global-one/credit/credit-insurance/
If you need help downloading or accessing your credit insurance policy, please call our 24hr Client Care Centre on 0860 10 20 43 or visit a branch.

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