New credit life insurance product
“It’s taken a while but we now have a product that is unique in the market and has been created specifically for our Debt Review clients. In some cases it will result in our clients saving up to 35% more than our previous credit life product,” said Dave Cummings, the head of financial planning at IDM.
Credit Life insurance covers debt obligations in the event of the insured’s death, disability, a dread disease or retrenchment. Furthermore, credit life insurance is insurance which is usually sold as part of a loan or credit agreement.
The product is only available to clients who are under debt review with IDM.
Cummings explains that the biggest enhancement to the product is the Retrenchment Benefit.
“When a client is retrenched the policy will pay out their full Payment Distribution Agency (PDA) instalment for nine months,” said Cummings.
Cummings said that most of their credit life claims are retrenchments, so they are happy that they can provide their clients with the best possible cover if this were to occur to them.
The credit life product also offers severe Illness cover.
“The new policy will pay out the outstanding debt for all severities of a severe illness,” said Cummings.
Furthermore, only thebalance of the waiting period will be served by the client.
Cummings also highlighted that theprice has decreased to just over R2 per R1000 of debt (from R3 per R1000), depending on the PDA amount.