Financial words are rarely understood by the outside world. Unless you are a professional in the field or follow business news -you know, that bunch of stuff right before the sports news- most of the vocabulary in the money industry can feel like an alien language. But we all know that knowledge is power, and with power comes control. In this case, control over the security of your assets through credit insurance.

To save you the pain of going down the internet rabbit hole and opening multiple tabs on your browser, here’s the definition of ‘credit insurance’:

“An insurance policy that pays off an outstanding debt in the event of the policy holder’s death, disability or inability to pay back his debtor.”

At Aspira, we make sure that you (and your family) are protected by making credit insurance mandatory. You don’t have to get it from us, but if you choose to you can simply add 2% to your product price when you start your loan – meaning you don’t have to worry about paying more than one company!

Our credit insurance covers 4 types of incident. Here’s an overview (make sure that you read the policy for the details!)

  1. Term Life

Under this type of cover, in the unfortunate event that one of our customers passes on before completing their payments, the insurance will cover the rest of the payments.

To put this into perspective, unlike most lenders who will come knocking on the door of the next of kin, this cover will be one less worry.

 

  1. Permanent Disability

Accidents happen. They come, as they usually do, without warning. Under this cover, if you become permanently disabled and unable to work while you are making your repayments, insurance will take care of the remaining part.

 

Permanent disability includes the loss of limbs, eyes or both.

 

  1. Fire , lightning and earthquake at place of residence

No, not the lit kind. The other kind of fire, the one that includes extinguishers. In the case that your device gets destroyed by any of these three, you can remove the agony about repayments. You can focus on rebuilding knowing that your included insurance cover will cater for your loan.

 

  1. Burglary from place of residence

It doesn’t make sense to continue paying for what you don’t have, we understand. And that’s why we provide insurance cover for your product in case it gets lost as a direct result of a burglary from your place of residence, so you won’t have to worry about continued repayments. (Burglary from bae’s house doesn’t count!) We’ve got you covered, literally.
(Tip: Make sure that you keep your place of residence updated with us so that we can cover you!)

However, not all situations are covered. Make sure you avoid these common incidents as credit insurance won’t cover you:

  1. Cracking your phone screen (otherwise known as ‘the spiderman screensaver’) – check with your retailer about product warranties and specific product insurance when you make your purchase as this is the best way to cover your repairs
  2. An accidental phone bath – we’re yet to find the CPR equivalent for phones, so keep them dry with a waterproof case or invest in one of the many waterproof phones!
  3. Nairobbery – we can’t protect you from theft everywhere, so ask your insurance company about options for protecting your products when you’re on the go.

This is just a summary, so make sure that you read the documents when you sign so that you know what you’re covered for– just like with any other financial product.

We hope that you won’t end up needing to rely on your insurance, but here’s some tips in case you do:

  1. Ensure that your next of kin has a copy of your contract and policy details in case the worst happens.
  2. Check your insurance policy to make sure that the incident is covered.
  3. Complete the claim form.
  4. Submit your supporting documentation as requested by the form – for example, for burglary you will need a police report showing that there was forcible entry to your place of residence.
  5. You will receive notification about your claim within 7 days. If approved, the insurance company will make a payment for the remainder of your loan directly to Aspira, clearing your obligations.