Yalu Financial Services(Pty) Ltd is an authorised Financial Services Provider FSP 48495
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Yalu Financial Services(Pty) Ltd is an authorized Financial Services Provider FSP 48495
Frequently Asked Questions
About Yalu and credit life insurance
Who is Yalu?
We're a financial services provider that offers credit life insurance underwritten by Old Mutual Alternative Risk Transfer Limited. Credit life is insurance that pays for your debts on your covered credit facilities should you no longer be able to pay due to retrenchment, disability or even death. Credit providers usually insist that you have this insurance cover for the duration of your loan or other credit agreements, particularly for personal and student loans and in some instances for credit cards, home and vehicle loans.
What is credit life insurance?
This is insurance that pays for your debts on your covered credit facilities when you are no longer able to pay due to retrenchment, disability or even death. It protects both you and your loved ones from the strain of having to settle a debt when life circumstances may place you in a position where you simply are unable to. Credit providers usually insist that you have this cover for the duration of your loan or other credit agreements, particularly for personal and student loans and in some instances for credit cards, home and vehicle loans.
Why do I need credit life insurance?
To ensure that the credit agreements that you have will still be honoured even when you’re unable to pay the instalments for your debts due to unforeseen circumstances such as retrenchment, disability or death. Credit life insurance is designed to protect and provide a measure of security for both you and the credit provider.
Am I eligible for credit life insurance with Yalu?
If you qualify for credit or have existing credit, then you most likely qualify for credit life insurance as well. The minimum loan amount of R8 000 only applies for personal and student loans. There is no minimum for credit cards and revolving loans.
Is there a limit to the size of credit life insurance cover I can have?
This depends on the credit life insurance provider. The maximum loan amount the Yalu Credit Life Insurance Plan (“the Plan”) covers is R300 000 per loan or credit facility, but remember that the Plan can cover multiple loans under one policy.
Are there age limits for credit life insurance?
The entry age for starting the plan is between 18 - 60 years. On the Yalu Credit Life Insurance Plan, your disability, retrenchment and other benefits cover will end when you turn 65 years and the death benefit will end when you turn 70 years.
Am I paying for credit life insurance already?
Most likely yes, if you have a personal loan or a student loan. Most, if not all personal loan and student loan contracts in South Africa require credit life insurance as a condition of getting the loan. For some credit providers, for example banks, it’s also compulsory for credit cards, vehicle loans and home loans under R1million.
Am I able to choose any credit life insurance provider?
Absolutely. You don’t have to take the credit life insurance from the same credit provider giving you the credit facility or loan. You can choose to shop around before you take out your loan, or even switch to another credit life insurance provider after you've accepted the one provided by your credit provider.
Why should I choose the Yalu Credit Life Insurance Plan? What makes it different?
The Yalu Credit Life Insurance Plan offers you:
Premiums that reduce every month as your debt balance reduces.
10% of your premiums back at the end of the credit agreement term for personal and student loans - if you have not claimed on the policy OR after five claim-free years on your credit card and revolving loan. It’s important to note that you must not have missed any premiums to qualify for this benefit.
Simplicity – it’s easy to understand and is the first in the market that can be purchased effortlessly online in under five minutes.
Additional peace of mind if you switch from an existing policy, by covering any other benefits you may have had with your previous insurer.
The transparency of knowing exactly what you are covered for, how much you pay for it and how to claim should you ever need to.
The convenience of Yalu doing the admin work to help you cancel your previous credit life insurance policies you may have.
One policy covers your personal loans, credit cards, revolving loans and student loans- saving you on unnecessary admin fees and debit order costs for multiple policies.
Don’t I have to use the credit life insurance cover offered by my credit provider in order to qualify for the credit agreement?
No, being granted a credit agreement from a credit provider does not mean you have to settle for the credit life insurance product from the same credit provider as a pre-requisite for the credit agreement. You have the freedom of choice - Yalu gives you that choice to change.
How is my credit life insurance premium calculated?
The National Credit Regulator (NCR) has placed a limit on how high your premiums can be. The legally allowed maximum is R4.50 per outstanding R1000. With Yalu however, you are charged from as little as R2.95 per outstanding R1000.
How do I take up a Yalu Credit Life Insurance Plan?
Joining is easy. You can take up a Yalu Credit Life Insurance Plan in 5 minutes on your phone by visitingwww.yalu.co.zaor you can talk to a Yalu brand ambassador on 010 880 0857.
Why must Yalu know about my employment status?
The law and regulations require all credit life insurance providers to ask this question in order to determine the benefits that are relevant to you.
How will switching to Yalu affect me?
What if I already have credit life insurance on my loans?
If you already have credit life insurance on your loans, then you should check that you’re not paying too much and understand what you are covered for. With the Yalu Credit Life Insurance Plan you don’t need multiple credit life insurance policies – all your loans will be covered under one policy. This means you can save on admin fees of having multiple policies.
I already have credit life insurance but would like to switch. Is this a difficult process?
Switching to a Yalu Credit Life Insurance Plan is made easy and convenient via our website, with the process completed in just five minutes. Yalu further simplifies the process by sending the cancellation documentation required by your existing credit life policy on your behalf, so this big hassle factor is removed.
Will switching to Yalu affect my credit score or record?
Please note that since your credit life insurance policy covers a corresponding loan, the Yalu Policy will be reflected on your credit profile. However, the impact on your credit score is minimal as the enquiry relates to insurance and NOT credit.
Will I at any point be paying 2 premiums for credit life insurance; one for the Yalu Credit Life Insurance Plan and the other to my credit provider?
Your credit provider usually has a 30-day notice period from when you inform them of your wish to cancel the credit life insurance they offered you when you took out your credit agreement, in which they are then duty-bound to stop charging you for credit life insurance. Your first Yalu Credit Life Insurance Plan premium will only be deducted in the month after you have taken up the plan. During this time, you will still enjoy cover.
When I switch, how are my savings calculated?
By comparing the credit life insurance premiums charged by your credit provider on a credit agreement issued since August 2017, compared to the Yalu Credit Life Insurance Plan’s premiums.
Important to note:
Your savings calculation is based on industry-wide research of credit life pricing charged by the individual credit life insurance providers who are used by credit providers, completed in August 2019.
Credit providers that were surveyed include 1Life, 1st for Women, Absa, Auto & General, African Bank, Bayport, Bruma, Budget Insurance, Capitec, Clientele, DirectAxis, FinChoice, FNB, GreenFin, Izwe, Makro, Nedbank, Old Mutual Finance, OOBA, RCS, Sanlam, SA Home Loans, Standard Bank, SWU, Ubank, Wesbank and Woolworths.
Your savings may be higher if you were granted your credit agreement before August 2017. This is because regulations were subsequently put in place to limit the price insurers can charge for credit life insurance.
Your savings calculation assumes that the credit life product you currently have, is the insurance product your credit provider offered you when granting you your credit agreement.
Your savings calculation is based on you identifying yourself as being permanently employed.
How much can I save by switching to Yalu?
The amount depends on what you’re currently paying for your credit life insurance. Check out our quick to use calculator onwww.yalu.co.za/calculatorto see how much you could save.
Will my policy premiums decrease as my balances reduce?
Yes, the premiums decrease as the outstanding debt amount decreases.
Will Yalu stop debiting me when I’ve paid off my debt?
Your debit order stops when your debt repayment period comes to an end.
Do I need to have a policy for each loan I have or take out?
Not at all. With Yalu, one policy can cover one or most of your credit facilities (Credit Cards, Personal, Revolving and Student Loans) – meaning one premium, no multiple admin fees and one provider to deal with if you should ever need to claim.
Generic product related questions
What credit-type products does Yalu offer?
The Yalu Credit Life Insurance Plan currently covers Personal Loans, Student Loans, Revolving Loans and Credit Cards. Soon this cover will be extended to other credit products such as Home Loans and Vehicle Loans.
Can I replace my current credit provider’s Credit Life Insurance policy with a standalone one?
Yes, you can. The Yalu Credit Life Insurance Plan gives you the option of replacing your current credit provider’s credit life insurance policy with a standalone one that meets your needs and your pocket.
What does the Yalu Credit Life Insurance Plan cover?
The Yalu Credit Life Insurance Plan covers: retrenchment, disability (permanent and temporary) and death for Personal Loans, Student Loans, Credit Cards and Revolving Loans - one policy, multiple debts. We also cover any other benefits you may have with your current credit life insurer – making sure you don’t lose out.
What happens if I can't afford my premiums anymore?
We don’t encourage not paying your premiums, but we can understand that life can be tough sometimes. That’s why we’ll give you up to two months to miss your premiums. But we still need to debit you for the missed months by the 3rd consecutive month. This means on the third month, we will debit you for 3 months’ worth of your premiums. If we can’t debit you then, unfortunately we have to lapse your policy and inform your credit provider.
In terms of retrenchment, does Yalu pay out the moment you are retrenched, or a certain period has to lapse?
The waiting period to qualify for the retrenchment benefit is 90 days. But, if you had previous cover and you’ve already completed this waiting period, then you get immediate cover for the benefit.
Credit life insurance on your personal loans
Am I paying credit life insurance on my personal loan?
You most likely are. But the good news is that you don’t have to keep the one you have with your credit provider. The Yalu Credit Life Insurance Plan is the affordable and rewarding alternative.
Can I save up on my total personal loan repayments?
Most likely. On average, Yalu customers save up to 12% on their credit life insurance premiums. This means they pay less on their total personal loan repayments because credit providers usually combine loan instalments with credit life insurance premiums.
When do I get my premiums back on the credit life insurance on my personal loan?
If you never need to claim on the policy and pay all your premiums, you will get 10% of your credit life insurance premiums back when you settle your personal loan.
Credit life insurance on your student loans
When do I get my premiums back on the credit life insurance on my student loan?
If you never need to claim on the policy and pay all your premiums, you will get 10% of your credit life insurance premiums back when you settle your student loan.
What if my student loan is less than 5 years and I pay it up?
If you settle your student loan, paid all your premiums and never needed to claim on the policy, you will get 10% of your credit life insurance premiums you paid on the Yalu Credit Life Insurance Plan, back when you settle your student loan.
Am I paying credit life insurance on my student loan?
You most likely are. But the good news is that you don’t have to take it out with your credit provider. The Yalu Credit Life Insurance Plan is the affordable alternative.
Credit life insurance on your revolving loans
When do I get my premiums back on the credit life insurance on my revolving loan?
You will get 10% of your credit life insurance premiums paid on the policy, refunded to you after 5 claim-free years if you’ve never missed any premiums.
What will happen to my revolving loan should I become temporarily disabled or retrenched?
The Yalu Credit Life Insurance Plan pays your revolving loan’s monthly instalments up to 12 months, should you become temporarily disabled or retrenched. And if you become permanently disabled or pass away, the Plan settles your revolving loan.
Credit life insurance on your credit cards
When do I get my premiums back on the credit life insurance on my credit card?
You will get 10% of your credit life insurance premiums paid on the policy, refunded to you after 5 claim-free years if you’ve never missed any premiums.
Credit life insurance on your home loan and vehicle finance
Do you cover mortgage /bond and vehicle finance?
Not yet. Stay tuned to our website for future developments.
How do I submit a claim?
You can log a claim online when you login onto your customer profile, or by calling us on 010 880 0857, or by emailing us at[email protected].
How will my claims be paid out?
Your credit provider is the beneficiary on the Yalu Credit Life Insurance Plan. This means that if you claim, the sum assured will be paid directly to the credit provider to meet your credit agreement commitment.
How soon will my credit life insurance claim be paid out?
Yalu Credit Life Insurance Plan cover pays out your claim as soon as the necessary documentation is provided. Some of the documents we need to process a claim quickly include, but not limited to notices of retrenchment, death certificates, medical expert reports on disability, employment termination reports and others.
How quickly does credit insurance pay out if I get retrenched?
Most credit life insurance providers have a waiting period before you qualify for a retrenchment claim. Yalu’s waiting period is 90-days. But Yalu’s waiting period falls away if you were covered for retrenchment by your previous policy and that policy was in place for more than 3 consecutive months. An approved retrenchment claim will be paid monthly up to 12-months.
What gives me assurance that my claims will be paid out?
The Yalu Credit Life Insurance Plan is insured by Old Mutual Alternative Risk Transfer Limited (OMART), part of the Old Mutual Group which has been around for an incredible 174 years. The Reinsurance Group of America (RGA) assess all claims submitted under the Yalu Credit Life Insurance Plan, and is one of the largest global life and health reinsurance companies.
Yalu Financial Services (Pty) Ltd is an authorised Financial Services Provider FSP 48495