How Much Is Your Life Insurance Costing You?

INTERNAL STEPP – JULY 2019
July 8, 2019

In these tough economic times, South Africans have been trying to cut back on unnecessary costs. Whether this is by scouting out the best special, or not buying those expensive pair of leather shoes that you’ve been eyeing, cutting back is something most of us have grown accustomed to.

Cutting back costs by living less luxuriously is an excellent way of saving money, but did you know that you can cut back on costs, even more, when you revisit the hidden costs that are associated with your personal loan?

People tend to assume that the monthly repayments are fixed and that absolutely nothing can be done to trim costs. However, you should be looking at the cost of the credit life insurance which most banks make mandatory when taking out a personal loan. If you have a personal loan, you will have credit life insurance as well. This ensures that your debt will be paid should you be unable to make your repayments due to death, disability or retrenchment.

It’s important to note that most people are not aware of how much this credit life insurance is costing them. People accept credit life insurance when signing their loan agreement to avoid any complications or inconveniences. Consumers need to know that they are never obligated to accept this cover, especially not when there are so many other more affordable options out there that provide you with more benefits. Even if you have an existing loan, you can switch your credit life insurance to a provider that offers you lower rates and additional benefits without any repercussions, if there is no break in cover.

Here at Stepp, we will ensure that your loved ones are looked after at death, but also should you become disabled, critically sick or retrenched. When taking out life insurance with us, we will conduct a detailed analysis to establish that all needs will be met at death, disability, critical illness or retrenchment and avoid that you are over-insured. Additionally, we will ensure that you receive the best premium and solution available on the market so that you can rest assured that you are receiving the best possible deal, while also cutting back on your expenses.

This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your adviser for specific and detailed advice. Errors and omissions excepted (E&OE)