{"id":1351,"date":"2017-03-29T13:22:19","date_gmt":"2017-03-29T11:22:19","guid":{"rendered":"https:\/\/www.namfisa.com.na\/educates\/?post_type=right_responsibility&p=1351"},"modified":"2025-07-16T12:31:04","modified_gmt":"2025-07-16T10:31:04","slug":"what-borrowers-need-to-know-about-credit-life-insurance","status":"publish","type":"post","link":"https:\/\/www.namfisa.com.na\/educates\/what-borrowers-need-to-know-about-credit-life-insurance\/","title":{"rendered":"What Borrowers Need to Know About Credit Life Insurance"},"content":{"rendered":"\t\t
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Very often consumers take out Credit Life Insurance without actually knowing what it is.<\/span>Credit Life Insurance is a policy taken out by a borrower to cover their debt if they die, become disabled, or are retrenched. The premium is usually included in the monthly loan payment, ensuring the lender is paid if the borrower can't repay due to these specific events.\n\nHowever, Many borrowers are led to believe that it is insurance to\ncover them when they are unable to pay back their debts irrespective of the reason\nfor the inability to pay. In fact, very often they think if they find themselves in\nfinancial difficulties they can stop the monthly installments and the insurer will as\na result pay out.\nWhat has, however, caused this kind of confusion is another type of insurance\ntypically taken out by the lender. This kind of insurance is called \u201cCredit Guarantee\nInsurance\u201d. With this type of insurance, the lender takes out insurance to cover him\nor herself in case the borrower fails to pay off the loan in circumstances other than\ndeath, disability or retrenchment. However lenders often make the borrower pay\nfor such insurance. That practice is incorrect.<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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What do borrowers need to know?<\/h3>Before taking out a loan, it's important to understand what Credit Life Insurance is, how it works, and whether it\u2019s right for you. Many borrowers pay for this insurance without realizing what it covers \u2014 or that they may not need it at all.<\/span><\/span><\/div>
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  • <\/span>Ask if the loan includes Credit Life Insurance and what it covers.<\/li>
  • <\/span>You are not required to buy Credit Life Insurance to get a loan.<\/li>
  • <\/span>You have the right to refuse the insurance \u2014 and to get it from another provider if you choose.<\/li>
  • <\/span>If you're pressured to buy it, consider finding a different lender.<\/li>
  • <\/span>Review all loan documents carefully to ensure they\u2019re correct.<\/li>
  • <\/span>Credit Life Insurance because there is a greater risk associated with the product and that makes for higher premiums<\/li>
  • <\/span>This insurance doesn\u2019t require a medical exam \u2014 eligibility is based only on being a borrower.<\/li>
  • <\/span>The policy covers the loan balance, not your life, and the lender is the beneficiary \u2014 not your family.<\/li>
  • <\/span> The lender is the beneficiary, not you or your family. Therefore only buy Credit Life Insurance if you are not insurable, meaning you are not able to buy life insurance through regular channels.<\/li>
  • <\/span>You have the right to refuse the insurance \u2014 and to get it from another provider if you choose.<\/li><\/ul><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    Issued by:\nPhillip N. Shiimi\nREGISTRAR: LONG AND SHORT-TERM INSURANCE<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

    Very often consumers take out Credit Life Insurance without actually knowing what it is.Credit Life Insurance is a policy taken out by a borrower to cover their debt if they<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_EventAllDay":false,"_EventTimezone":"","_EventStartDate":"","_EventEndDate":"","_EventStartDateUTC":"","_EventEndDateUTC":"","_EventShowMap":false,"_EventShowMapLink":false,"_EventURL":"","_EventCost":"","_EventCostDescription":"","_EventCurrencySymbol":"","_EventCurrencyCode":"","_EventCurrencyPosition":"","_EventDateTimeSeparator":"","_EventTimeRangeSeparator":"","_EventOrganizerID":[],"_EventVenueID":[],"_OrganizerEmail":"","_OrganizerPhone":"","_OrganizerWebsite":"","_VenueAddress":"","_VenueCity":"","_VenueCountry":"","_VenueProvince":"","_VenueState":"","_VenueZip":"","_VenuePhone":"","_VenueURL":"","_VenueStateProvince":"","_VenueLat":"","_VenueLng":"","_VenueShowMap":false,"_VenueShowMapLink":false,"footnotes":""},"categories":[425],"tags":[],"class_list":["post-1351","post","type-post","status-publish","format-standard","hentry","category-rights-and-responsibilities"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/posts\/1351","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/comments?post=1351"}],"version-history":[{"count":28,"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/posts\/1351\/revisions"}],"predecessor-version":[{"id":35471,"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/posts\/1351\/revisions\/35471"}],"wp:attachment":[{"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/media?parent=1351"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/categories?post=1351"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/tags?post=1351"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}