Personal Finance | Insuring your debt

They say you leave everything behind when you die. Even your debt. This could place an unnecessary burden on loved ones. Finance Guru, Maya Fisher-French has more. #eNCA Courtesy #DStv403

When you die you leave everything behind for those that you love but do you really want to do that do you want to leave your debt behind for those that you love you really don’t it could place an unnecessary burden on your loved ones at a very traumatic time but there’s insurance that covers your debts do you know that you’ve got insurance that covers your debts

Finance guru maya fisher french let’s head over to her now and maya this all comes around a viewer contacting you recently discovering that he and his wife if i remember correctly had a balanced protection plan on their mortgage it’s something so simple but people don’t look out for it tell us more about it morning foreign you know this is one of those kind of

Feel-good stories i mean because he contacted me and he had gone to his bank just for a routine query or something and the bank consultant that said to him do you know that you have this balance protection plan on your on your mortgage which if it and it’s a joint mortgage and the balance protection plan was for both him and his wife and his wife had passed away

About three nearly four years ago and he didn’t know that he had this insurance in place because he contacted me because he was worried now would they pay out because there was a time limit you know have you exceeded the time limit in his case he was fortunate because he continued to pay that premium and i think the insurer in this case couldn’t really argue if

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They’ve been receiving the premium and they went and settled mortgage but the point is that he could have settled the mortgage three four years ago when his wife had actually passed away and he just didn’t know he had that insurance in place and he’s been paying for it and a month tilly gareth i come across this so often people just don’t know about these insurances

That are often linked to their debt it could be their mortgage it could be their car finance we see it quite commonly in things like credit cards personal loans it’s something often we call that credit life and that specific case really important to know that you have i mean imagine his life i mean it was a little bit you know obviously was great he discovered it

Now but three years ago four years ago he’s been paying all of those installments yeah i mean absolutely and i think the problem maybe is maya we can maybe talk about it another day maybe you can pick up on it here is uh it’s all these fancy names that all the different providers these credit providers are calling us i mean it’s a credit life a credit assurance

Uh home protection you can’t keep up with the different names and i’ll be honest it can get a bit daunting you don’t actually know what you’re paying for in the end and we don’t even know if we have these insurances so for someone maybe like me who doesn’t even realize i have it what do i need to ask what’s the questions i need to be asking especially around the

Time limit on claiming as well i think the most important thing to do is go and look at your statements you know if you’re getting emailed to you whatever and go and look at what what is coming off that you know what are you paying for and you’ll see something saying service fees you may see credit uh facility fee you’ll see all these words find out what each

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Of them means and one of them is going to be possibly is you know protection plan balance protection like you said i think i should probably come up about 30 different terms that the companies use but something’s going off something’s coming off either bank account or it’s added onto that um statement that you know that you’re paying every month that installment

You’re paying every month so go check it in fact if i would say do one thing before the end of the month it’s spring month isn’t it so go to go check all of your statements find out what you have take a big highlighter highlight it and also make sure your family are aware that you have that because obviously in this case um you know if somebody passes away how do

You how did your family even know that you possibly had this insurance in place i must say that some of the banks are more proactive than others they will actually check with home affairs once a month against death certificates with their id numbers and things like that but you know so sometimes it is picked up but you you know you as the family do need to check

That as well and and there can be limits on it so in this particular case i think that there was a three-year limit on it except that he had continued to pay the pay the premiums so you know if you somebody passes away and the premium hasn’t been paid for several years it may impact it but on traditional life insurance generally what happens if it gets put into

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An unclaimed benefit fund um so your your beneficiaries could still find it so it does depend a little bit on the actual insurance product and how it’s structured but really important to find out this credit life can also cover you for entrenchment which we covered a lot gareth you’re a member during covert and there there’s definitely i think it’s about um it’s

Only a six month um i think you’ve got a maximum of six months to make that claim uh what i find bizarre my i’m not being rude i’m sitting on my cell phone at the moment and i thought well actually i wonder if i can go into my banking app and go take a look i mean you would imagine that would just live on yourself and you can go in there and go to your profile or

Insurance or whatever and actually just see yes you’re covered for my mortgage if i die my wife will get the payout but i mean it’s just not that simple it should be that simple maybe i don’t understand the process but it should be this simple but apparently it’s not so good advice from my official french grab a highlighter spring clean uh your bank statements

Maybe there’s a whole show spring cleaning your bank statements in the month of september maya always good appreciate it good advice and don’t just uh nod like i do and go on with your day actually go to the bank print out your bank statements and actually sit down with someone they can explain what all those little fees mean you might have insurance you’re not

Even aware of we’re heading up to

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Personal Finance | Insuring your debt By eNCA