Credit Life - money that a consumer pays to an insurance company
Credit Life - money that a consumer pays to an insurance company that will cover certain outstanding debts in the event of the account holder’s disability or death. If payment is stopped the cover will lapse. This expense is usually linked to consumer’s debt payment. Be sure to separate it from the installment amount when perusing the debt.
NDRC Practice NoteLast reviewed 2026-04
Credit life premiums are charged on most credit agreements and must be retained, otherwise the cover lapses and the debt becomes unprotected on death or disability. The premium is shown separately from the credit instalment in the worksheet.
Many consumers pay credit life rates above the regulated cap without knowing it. Where the rate exceeds the maximum prescribed, the consumer can demand a refund and switch to a compliant policy.
Statutory cap: National Credit Act Regulations on Credit Life Insurance, regulation 3 of GNR.182 of 9 February 2017.
Drawn from NDRC's active case work. For your situation, see our debt counselling overview.
Cite this clause
National Credit Regulator. (2015). Annexure B — Debt Review Assessment Guidelines, clause 7.1.23: Credit Life - money that a consumer pays to an insurance company. Guideline 001/2015 (Debt Review Task Team Agreements 2010), p. 42.