If you have any type of loan, you may have come across the term “Personal Protection Plan”. This is essentially insurance against a loan. This type of insurance cover is designed to protect you when unforeseen events increase the risk of you not being able to settle your debts.
What are the benefits of getting insurance against a loan?
You can get help for up to a predetermined amount. You can have the peace of mind knowing that your debt will be paid off and your family won’t struggle to make sure that you don’t default.
The benefits can be used to pay your monthly loan payments and to protect you from default
It is usually available to individuals between the ages of 18 and 65
You get cover for a range of eventualities, including:
- Death – if you die, your loan will be settled
- Disability – should you become temporarily or permanently disabled, leaving you unable to work, you can rest assured that your debt will be paid
- Dread Disease – in the unfortunate event that you become ill, you may no longer have the capacity to work, which may put you at risk of falling behind on payments
- Retrenchment – losing your job is traumatic enough. By getting this insurance cover you know that your debts will be covered
It may be used to cover various types of loans, such as student loans to personal loans.
Absa:
As one of South Africa’s biggest banking institutions, Absa strives to provide clients with quality and innovative solutions, designed to make their lives easier.
Through the Personal Protection Plan Absa is offering cover in the unfortunate event of death, dread disease and permanent disability.
Personal Loan insurance cover is for loan amounts of R3000 to R350 000.
Study Loan insurance cover is for loan amounts between R1500 and R250 000.
Revolving Loan insurance cover is for loan amounts that are lower than R150 000.
