You are currently paying credit life premiums on all or most of your accounts. Most credit providers make credit life cover compulsory on all the credit they extend to you. In the old days they embedded this cover in your instalment, and you were not even aware that you had such cover.

With the advent of the National Credit Act, however, they are not allowed to embed insurance into your instalment any more. But most of them still do!. Those who actually abide by the law, will inform you that such cover is compulsory, and that it is a condition to them granting you the credit. You thus end up paying credit life premiums on most of your accounts, whether you like it or not.

Now, such cover is not necessarily a bad thing. It protects your family in the sad event of you passing away. It will settle all your outstanding debts, leaving your family with all of your assets.
The problem, though, is that most credit providers are ridiculously expensive when it comes to credit life rates. A credit life policy is normally rated as an amount per R1000.

For example, if the rate is R 5 per R1 000,
and your loan is R 10 000, you will pay 10 x 5 = R 50 per month.

Most credit providers rate their credit life policies between R 5 per 1000, and R 25 per R 1000.
At R25 per 1000, your credit life premium can be more than your repayment of the loan!

So where does Debtplan come in?
Remembering that this cover is compulsory, you have no choice in whether you want it or not, but what you can choose, is with which insurance company you want to place the cover. Debtplan is rated at R4-00 per 1000. This should be cheaper than most loans or furniture
accounts. And we offer more benefits than any of the other insurers.

Our credit life cover includes:

• Death
  
• Disability
  
• Dread Disease
  
• Retrenchment cover, paying your repayments for 6 months if you are retrenched.

Debtplan is a replacement policy - we will cancel your existing policies at your credit providers(with your written consent, of course), and issue you with a new, less expensive policy. We will also provide your credit providers with proof of your cover.

This way you are already saving money, even before your debt counsellor
has re-scheduled your monthly repayments.