How to go about replacing credit life insurance with FNB
A consumer has the right to decide who will provide the obligatory insurance on their credit. This (Credit Life insurance) is normally mentioned, briefly to a consumer when they apply for the credit. The credit life insurance will cover the debt in case of the consumers untimely death and in some cases provide a few months payments in the case of a retrenchment. If a consumer wishes to change their credit insurance provider in regard to a FNB credit facility then this is the procedure:
Step One – Out with the Old
First the Debt Counsellor must have or FNB must be provided with a consent letter from the consumer to show this is what they want to do (since it is their insurance policy).
Step Two – In with the New
Next a new policy must be issued (preferably) before the Debt Counsellor submits the (final) proposal on the account and creates the draft court order.
Save this email address
This new policy should be sent to FRBDebtReviewCentre@firstrand.co.za The subject line should read Cancellation of Credit Life. This will greatly assist FNB in helping change the old policy on their side and knowing that the credit facility is still covered by insurance.
Since having cover is obligatory and a condition of having the credit most consumers simply go with the creditors own insurance however there are specialist companies (Such as ONE insurance) who can help consumers replace their perhaps more expensive insurance with more affordable insurance on their credit facilities. This can save consumers large amounts of money over time. It can also help free up a few extra rand for a consumer to meet a counter proposal from a credit provider when cash is tight (isn’t it always?).