How to avoid losing money from credit insurance

Many South Africans are taking out loans and additional credit these days. And along with these financial arrangements, you're generally asked if you want additional life insurance to cover the loan.

JOHANNESBURG - The financial crisis has affected South Africans' pockets in more ways than one. 

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South Africans are taking out loans and additional credit to cover their expenses and along with these financial arrangements, consumers are often offered additional life insurance to cover the loan.  

If a consumer already has a life policy, is it necessary to take out more cover?

READ: Bill could save over-indebted South Africans

 
Nkazi Sokhulu of Yalu Financial Services said banks usually require people to take insurance out against credit and loans.

Sokhulu said Yalu Financial Services offers a choice other than the automatic credit insurance from banks.

Sokhulu stated consumers must read the details of their loan and credit contracts to make sure they and relatives do not miss out on claiming from insurers in the event of a loved one's death.

Source
eNCA