FAQ Switch2
CREDIT LIFE INSURANCE QUERIES
What is Credit Life Insurance?
Credit Life Insurance or “Customer Protection Insurance” is defined in the National Credit Act as the cover payable in the event of a consumer’s death, disability, terminal illness, unemployment, or other insurable risk that is likely to impair the consumer’s ability to earn an income or meet the obligations under a credit agreement. In other words, your loan can be repaid in the event that you become unable to repay it.
Why do I need Credit Life Insurance?
A credit provider is entitled to require a consumer to maintain credit life insurance during the time of the agreement so that the loan will be paid should something happen to the customer. The pay-out decreases in correlation to the repayment making it a decreasing sum assured product. It is designed to protect and provide a measure of security for both the insured and the credit provider.
Do I need to take out Credit Life Insurance with the Credit Provider giving me credit?
No. You have a choice in who can provide you with Credit Life Insurance provided that your chosen CPI Policy must provide the same benefits as the CPI Policy which your Credit Provider would provide. Switch2 will negotiate with the Credit Provider to ensure your interests are sufficiently matched.
Do I qualify for a Customer Protection Insurance Policy with Switch2?
You qualify for a CPI Policy if you -
- are between the ages of 18 and 64;
- have a balance outstanding on a loan agreement with a Credit Provider;
- are not about to be retrenched
- are economically active and able to demonstrate an income
How do I get a Customer Protection Insurance Policy?
Follow the 5 easy steps available at http://www.click2sure.co.za/switch2. If you qualify for a CPI Policy, Click2Sure will refer to you Swicth2. Switch2 will assist you to change your Credit Life Insurance and will administer your CPI Policy.
Once I switch, what will the Customer Protection Insurance Policy protect me for?
The CPI Policy protects you in case of an “Insured Event” taking place during your period of insurance. This includes the following:
- In the event of your death, permanent disability or diagnosis of a critical illness, the CPI Policy will pay a lump sum directly to the Credit Provider equal to the value of the outstanding debt in terms of a credit agreement.
- In the event of you suffering a loss of income through temporary disability, retrenchment or any other cause through no fault of their own, the CPI Policy covers the full monthly instalment for a period of up to 6 months.
- If you are self employed and suffer a loss of income through temporary disability, the CPI Policy covers the full monthly instalment for a period of up to 12 months.
What is excluded from the Customer Protection Insurance (CPI) Policy?
- Retrenchment benefits are not paid if you lose your income within 90 days of the commencement of the insurance cover.
- Suicide is not covered if it occurs within a period of 24 months of the commencement of the insurance cover.
- Pre-existing conditions are not covered if these conditions result in a claim within 12 months from the commencement of the insurance cover.
How are claims paid out?
The CPI Policy is ceded to the Credit Provider which means that, in the event of a claim, the sum insured will be paid to the Credit Provider to settle the outstanding balance on the loan.
QUERIES ABOUT CLICK2SURE
What or Who is Click2Sure?
Click2Sure is an online insurance broker, and the first of its kind in South Africa! We make buying insurance easy, affordable and stress-free.
How is Click2Sure different from traditional insurance brokers?
Click2Sure is with the times: say goodbye to queues, annoying hold music and mind-numbing admin, and say hello to fast, efficient and simple insurance!
How do I get cover with Click2Sure?
It’s as easy as click! Just go to our website at www.click2sure.co.za and follow the simple instructions.
How can I reach Click2Sure?
Just go to our website at www.click2sure.co.za and hit the contact button. Leave us a message and we’ll get back to you shortly. If you prefer to pick up the phone, you can give us a call on +27 021 0125 095.
Can I switch if I already have a policy?
If you currently have a policy of insurance, it doesn’t make sense to you pay twice. We are fairly sure our policy of insurance has better cover for a lower premium but we leave you to be the judge and jury. If our offering is better suited to your needs we would welcome you as a customer once you have canceled your current cover. If our offering is not as competitive please inform us at [email protected]
Can I sign up using my gadget?
Most definitely! We’re digital ☺ As long as you are online, you can reach us using any device.