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Credit Life

Credit Life Cover serving as collateral for your loan


This cover includes

Death cover, which pays off the remaining loan balance Permanent disability cover, which pays off the remaining loan balance Temporary disability cover, which pays the loan instalments for up to 12 months or until the end of the loan term, or until the policyholder recovers Retrenchment cover, which pays the loan instalments for up to 12 months or until the end of the loan term, or until the policyholder finds new employment. This benefit is not applicable if the policyholder is self-employed.

How Credit Life Insurance Works


Borrowers pay a monthly premium for their credit life insurance policy, providing financial protection in unexpected circumstances like disability, critical illness, or death.


In the event of the borrowers's death, disability, or retrenchment, the insurance company will pay out a lump sum to the lender, which will be used to pay off the outstanding debt.


Credit life insurance may include benefits for disability or retrenchment, which means that the borrower may be able to claim on the policy if they are unable to work or lose their job.

Benefits of Having an
Mont Blanc Financial Services (MBFS) Financial Advisor:


Comprehensive Approach:

MBFS advisors go beyond basic financial products. They take a holistic view of your situation, considering short-term insurance, employee benefits, risk management, and even investment options. This comprehensive approach ensures your financial plan addresses all your needs.


Technology & Innovation:

MBFS prides itself on being a "Fresh-Tech" ™ company. Your advisor will leverage modern tools and resources to deliver efficient service and provide you with up-to-date financial information.


Client-Centric Focus:

Rooted in their core value "We Care" ™ , MBFS advisors prioritise building strong relationships with our clients. They act as partners, understanding your unique goals and tailoring solutions to achieve them.


Peace of Mind & Security:

With MBFS's focus on "Getting You Claims Ready"™ , our advisors can ensure you have the right insurance coverage in place. This proactive approach can give you peace of mind knowing you're protected financially in case of unforeseen events.

What are the benefits for you?

Constant cover

The insurance amount stays the same throughout the policy term, ensuring full loan repayment cover regardless of the decreasing loan balance. This predictability guarantees that the borrower's debt will be covered fully at any point during the loan term.

Convertible cover

After the loan is repaid, the policy can transition into a whole-life cover without additional health checks. This feature provides ongoing life insurance benefits, extending the policy's value beyond debt repayment.

Beneficiary Benefits

If the insurance payout exceeds the loan balance, the surplus is passed to a designated beneficiary. This allows the policy to not only secure debt repayment but also to support the borrower's family financially after their passing.

Simplified Enrollment

Designed for simplicity, these policies are easy to understand and apply for, often integrated into the loan process. This streamlined approach makes securing cover convenient, encouraging wider use and understanding.

Difference Between Credit Life Insurance
and Life Insurance

Credit Life Insurance


To cover outstanding debt in the event of the borrower's death, disability, or retrenchment


Typically limited to the outstanding debt amount


Premiums are typically lower than Life Insurance premiums, but are more limited.

Life Insurance


To provide financial protection to the policyholder's beneficiaries in the event of their death.


Cover can be much broader.


Premiums are typically higher than Credit Life Insurance premiums, but are more broader

Frequently Asked Questions

What is Credit Life Insurance, and how does it work?

What types of debts are typically covered by Credit Life Insurance?

Are there any situations where Credit Life Insurance wouldn't pay out?

Is Credit Life Insurance mandatory, and are there alternatives to consider?

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