Group Assurance

If an individual should die unexpectedly, become disabled (permanently or temporarily) or be retrenched, he or she may have an outstanding loan that needs to be repaid.

Taking out credit assurance protects the borrower and lender against such specified eventualities by paying the balance of the outstanding loan, or covering the instalments payable in respect of the loan for a specified period (for temporary conditions).

Key features

• The lending institution (typically a bank, an employer providing staff housing or vehicle loans, an agricultural co-operative or a micro-lender) is protected in the event of death, disability or retrenchment of the borrower.
• Borrowers can more easily obtain credit, as the credit institution does not have to bear the risk in the event of the borrower dying, becoming disabled or retrenched.
• The estate of the borrower remains intact in the event of death, disability or retrenchment of the income earner.
• The benefit is paid directly to the credit institution, providing greater security.
• A range of optional products can be selected, including:
• Permanent disability.
• Temporary disability instalment.
• Critical illness.
• Retrenchment (lump sum or instalment) cover.
• Cover is normally defined as either the outstanding or original value of the loan, and in the case of temporary disability or retrenchment, the instalment due under the loan arrangement.
• If cover is chosen equal to the outstanding loan, the premium will decrease over time.

Value to client

• Less risk to both the credit institution (lender) and borrower.
• The benefit is paid directly to the credit institution - saves administrative hassle for both the borrower and lender.
• Borrowers benefit from guaranteed acceptance under the group insurance package.
• Daily Tasks Disability test allows for a more streamlined claims assessment process and speedier payment of disability benefits.
• Customised package, developed by the Old Mutual CreditLife team, enhance the credit institution's product offering.
• Security of the Old Mutual brand.

Contact Details

If you require more information, or would like to discuss your company's requirements, please contact one of our Group Assurance Consultants.