AA Life Protector

What is AA Life Protector?

The AA Life Protector is a credit life insurance policy designed to help borrowers manage the risk of their debts in the case of unforeseen circumstances that affect their ability to fulfill their financial obligations. This policy is underwritten by Guardrisk and administered by Capital Legacy, offering protection in events such as death, temporary and permanent disability, and retrenchment depending on the coverage chosen.

Credit life insurance is crucial because it acts as a financial safety net, protecting the policyholder’s family or estate from inheriting unpaid debts. In the event of the policyholder’s death or severe disability, this insurance type directly pays off outstanding loans or debts, thus relieving financial stress during challenging periods. The cover is particularly significant for individuals with dependents or those involved in high-debt ventures, as it ensures that their financial responsibilities are handled without creating additional burdens on their families. Moreover, in cases of temporary disability or retrenchment, the policy provides necessary financial support by covering monthly loan repayments, which maintains the insured’s credit score and prevents the accrual of debt due to non-payment.

This policy is not just a financial product but a crucial part of responsible financial planning, ensuring stability and protection against the unpredictable nature of life’s many challenges. 


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    What is Covered?

    • Death: In the event of the policyholder’s death, the policy pays the benefit amount stipulated in the policy schedule. It prioritises clearing any outstanding debt with the remaining balance paid to the estate or nominated beneficiary.

    • Permanent Disability: Similar to the death benefit, this covers the outstanding loan balance up to the benefit amount. Any remaining funds after settling the debt are paid directly to the policyholder.

    • Temporary Disability: Payments cover the monthly credit installment for up to 24 months, or until the policyholder recovers or is declared permanently disabled.

    • Retrenchment: Provides coverage for the monthly credit installments for up to three months or until the insured finds new employment or can generate income again.

    Benefits of AA Life Protector

    The policy ensures that in the event of death or disability, the financial burden of outstanding debts does not fall on the family of the deceased or the incapacitated.

    It provides a safety net during unemployment due to retrenchment, alleviating immediate financial pressures.

    Assists in maintaining creditworthiness by preventing defaults on loans during the covered events.