Understanding overdraft insurance
Life is unpredictable, and we often find ourselves in positions where we may need some extra funds. An overdraft can come in handy to ensure you have the cash flow you need, but taking on extra credit is a big responsibility, and if something happened to you where you weren’t able to repay that money, it could put you and your family under significant financial stress. That is why it’s worthwhile to consider protecting your debt.
Insure your overdraft
A loan protection plan for your overdraft is designed to ensure that you can still make your monthly payments if you could no longer afford to repay the outstanding amount(s) due to retrenchment, temporary or permanent disability or dread disease.
It also ensures that in the event of your death, your loved ones won’t have to worry about having to pay off your outstanding debt.
Having an overdraft insurance safety net
- provides financial peace of mind and relief in a time of financial distress,
- prevents you from being stuck in a cycle of debt, and
- helps protect your credit score as you won’t miss any of your scheduled payments.
How much will your overdraft insurance cover?
Overdrafts, personal loans, vehicle loans and home loans are covered by loan protection plans. Our Loan Protection Plan allows you to insure your outstanding balance for up to R300 000* in the event that unforeseen circumstances affect your ability to pay off your debt.
This includes the following:
- Covering up to 12 months’ instalments if you’re retrenched or temporarily disabled until the age of 65
- Full settlement of your outstanding balance in the event of death, dread disease or permanent disability
- A minimum cover of R20 000 in the event of death, permanent disability or dread disease
*Terms and conditions apply.