Death
The outstanding balance is paid off in full, and the security over your vehicle is released to your estate.
If you die, are permanently disabled or lose your job, the cover settles what is left on your loan instead of leaving it to your family.
Credit life — also called loan protection or group credit — pays off the balance still owing on your facility if something happens to you during the term.
It is the piece most borrowers never think about. A logbook loan is secured on your vehicle, so without this cover an unpaid balance falls to your estate or your guarantors, and the asset your family depends on is the first thing at risk.
Because it only ever covers what is still outstanding, the amount insured falls every month as you repay — you are not paying to protect money you have already cleared.
In each case the insurer settles the balance with the lender directly, so nobody in your family has to negotiate a debt while dealing with everything else.
The outstanding balance is paid off in full, and the security over your vehicle is released to your estate.
If injury or illness permanently stops you working, the balance is settled rather than falling due at the worst possible moment.
Where this benefit is included, instalments are covered for a set period after involuntary loss of employment.
Very little, and that is the point. The claim is made against the policy, not against your estate, and it is settled with the lender.