Get in touch
Find us
- Login & Register
- Online Banking
- Online Share Trading
- NetBank Business
- NedFleet
- Nedbank Greenbacks
- Nedgroup Investments
- Nedbank ID
- Bank
- Accounts
- Credit cards
- Greenbacks
- Digital banking
- Switch to Nedbank
- Fraud awareness
- Forex
- Explore Bank
- Accounts
- Everyday banking
- Kids accounts
- Youth banking
- Seniors accounts
- Private Clients
- Private Wealth
- Digital wallet
- See all accounts
- Premium banking
- Get help choosing
- Goal saving
- Family Banking
- Foreign nationals
- FAQ
- How-to guides
- Discontinued accounts
- Everyday banking
- MiGoals Premium
- MiGoals Plus
- MiGoals
- Kids accounts
- MiGoals4Kids
- Youth banking
- MiGoals Premium
- MiGoals
- MiGoals Plus
- Seniors accounts
- MiGoals Premium Senior
- MiGoals Plus
- Private Clients
- Pay-as-you-use
- Young Professionals
- Private Bundle and Private One
- Private Wealth
- Private Wealth Bundle
- Digital wallet
- MobiMoney
- American Express
- Amex Gold
- Amex Platinum
- Greenbacks
- Exclusive discounts
- FAQ
- How-to guides
- Digital banking
- Switch to Nedbank
- Fraud awareness
- Forex
- Save & Invest
- Accounts
- Investment services
- Share trading
- Explore Save & Invest
- In 24 hours
- JustInvest
- PlatinumInvest
- Tax-free Savings
- MoneyTrader
- EasyAccess Fixed Deposit
- PrimeSelect
- In 32 days
- Electronic 32Day Notice
- 32Day Notice
- End of term
- Tax-free Fixed Deposit
- Electronic Fixed Deposit
- Electronic Optimum Plus
- Platinum Fixed Deposit
- Fixed Deposit
- OptimumPlus
- Investment services
- Share trading
- Borrow
- Personal loans
- Home loans
- Student loans
- Overdrafts
- Vehicle finance
- Solar finance
- Debt assistance
- Explore Borrow
- Personal loans
- Loan consolidation
- Personal loans
- Home improvement loan
- Exclusive short-term loan offers
- Explore loans
- FAQ
- How to guides
- Loan consolidation
- Personal loans
- Home improvement loan
- Exclusive short-term loan offers
- Home loans
- Buy
- Build
- Switch
- Manage
- Further lending
- Explore home loans
- Request a call back
- Track application
- FAQ
- How to guides
- Buy
- Explore buy
- First time home buyer
- Repeat buyer
- Renewable energy financing
- HomeVision
- Home-buying Toolkit
- Edge properties
- Repossessed properties
- Switch
- Explore switch
- Further lending
- Explore further lending
- Student loans
- Explore student loans
- Overdrafts
- Vehicle finance
- Solar finance
- Debt assistance
- Consolidate all your debts into a simple loan | Nedbank
- Short-term payment relief | Nedbank
- Take charge and restructure your finances | Nedbank
- Assisted-sales solutions for homes and vehicles | Nedbank
- Flexible payment plans for loans and credit | Nedbank
- Understanding how repo rate works | Nedbank
- We have payment solutions to get you back on track
- Consolidate all your debts into a simple loan | Nedbank
- Short-term payment relief | Nedbank
- Take charge and restructure your finances | Nedbank
- Assisted-sales solutions for homes and vehicles | Nedbank
- Flexible payment plans for loans and credit | Nedbank
- Understanding how repo rate works | Nedbank
- We have payment solutions to get you back on track
- Insure
- Life cover
- Funeral cover
- Short term insurance
- Credit Life
- Travel insurance
- Business cover
- Secure investments
- Explore Insure
- Life cover
- Get a call back
- Explore MyCover life
- Funeral cover
- Individual R10,000
- Individual R30,000
- Family Cover
- Build your own cover
- Get a call back
- Explore MyCover Funeral
- Individual R10,000
- Individual R30,000
- Family Cover
- Build your own cover
- Short term insurance
- Vehicle insurance
- Building insurance
- House contents insurance
- Valuables insurance
- Alternative energy insurance
- Legal expenses | Nedbank Insurance
- Get a call back
- Explore MyCover short term insurance
- Vehicle insurance
- Building insurance
- House contents insurance
- Valuables insurance
- Alternative energy insurance
- Legal expenses | Nedbank Insurance
- Credit Life
- Home loan credit life
- MFC Vehicle Finance Assurance
- Overdraft Assurance
- Balance Protection Plan
- Personal loan Assurance
- Get a call back
- Explore credit life
- Home loan credit life
- MFC Vehicle Finance Assurance
- Overdraft Assurance
- Balance Protection Plan
- Personal loan Assurance
- Travel insurance
- Business cover
- Secure investments
- Guaranteed Growth Income Plan
- Guaranteed Growth Plan
- Get a call back
- Explore MyCover Funeral
- Guaranteed Growth Income Plan
- Guaranteed Growth Plan
- Plan
- Financial planning
- Estate, wills & trust services
- Nedbank Private Wealth
- Speak to a financial adviser
- Explore Plan
- Financial planning
- Investment planning
- Insurance planning
- Give
- Retirement planning
- Investment planning
- Insurance planning
- Give
- Retirement planning
- Estate, wills & trust services
- Will drafting
- Ensure your estate is managed by an executor | Nedbank
- Trust services
- Financial accounting
- Tax services
- Leave the admin of your estate to us, and not to your loved ones | Nedbank
- Will drafting
- Ensure your estate is managed by an executor | Nedbank
- Trust services
- Financial accounting
- Tax services
- Leave the admin of your estate to us, and not to your loved ones | Nedbank
- Nedbank Private Wealth
- Speak to a financial adviser
- Learn
- Blog
- Explore Learn
- Blog
- A financial adviser can help you plan your future
- Everything you need to know about student loans
- A financial adviser can help you plan your future
- Everything you need to know about student loans
- Contact us
- Talk to us
- Find us
- Explore Contact us
- Talk to us
- Find us
Don’t have your Nedbank ID yet?
Nedbank ID single sign-on gives you full digital access to Nedbank’s banking and lifestyle products and services on the Money app or Online Banking.
Log in
Log in to Online Banking or another one of our secured services.
Personal loans, credit life cover and retrenchment
Peace of mind is knowing your loan payments will continue if you’re retrenched.
No one can predict life’s many turns. Retrenchment is a traumatic experience, especially when you didn’t see it coming. Thankfully, the stress and financial impact can be managed if there’s a plan in place, including how to handle personal loans.
What is retrenchment?
Retrenchment is the process that an employer must follow when ending full-time or permanent employment for any of the following reasons:
- Closure of business.
- New technology has been developed that can replace the roles of some employees.
- Large-scale restructuring.
Retrenchment doesn’t apply to pensioners, people who receive social grants, are self-employed, or are employed in the informal sector, so they cannot claim ‘retrenchment’ as a reason for loss of income.
Understanding credit life insurance for personal loans
A credit life insurance policy helps you to keep paying personal loan instalments if you have been retrenched, or you are not earning an income while still employed (as many experienced during Covid lockdowns). However, the types of events covered depend on the type of credit life product you have.
Our retrenchment and loss of income cover for personal loans
You can claim a retrenchment or loss-of-income benefit to cover personal loan payments under the Nedbank Insurance Personal Loan Credit Protection Plan.
What it covers
Monthly personal loan payments up to 12 months.
When can you claim?
When you’re retrenched and become unemployed.* A claim will be considered only if you’re unemployed or have suffered a loss of income of 75% or more.
*‘Unemployment’ refers to being without a paid job, but available to work and actively looking for employment.
Details of cover
The monthly instalment on a personal loan will be paid for a maximum of 12 months. Insurance payments will cease if, before the 12 months is up:
- the loan expires or is repaid,
- you return to full-time employment,
- you start earning an income again without full-time employment,
- you reach the age of 65, or
- you pass away.
But note that a credit life insurance policy also covers personal loan payments in the event of your death, so your loved ones will not be burdened by the remainder of your loan repayments if you should pass away.
Conditions
A retrenchment benefit claim under this policy can be submitted only if you are below the age of 65, we haven’t paid any claims under the comprehensive disability benefit, and you have been in full-time employment for 12 months in a row since your last loss-of-income or retrenchment claim ended.
Waiting period
If a loan term is longer than 6 months, a 3-month waiting period will apply for retrenchment claims.
Remember, the claim will not pay out if:
- you were lawfully dismissed, including as a result of wilful misconduct that is in violation of some established, definite rule of conduct, a forbidden act, or wilful dereliction of duty,
- you accepted voluntary forfeiture of salary, wages or employment income,
- you resigned or accepted voluntary termination of employment,
- you were aware of or received notice of retrenchment during the 3 months before the policy start date,
- you have retired,
- you lost your job because you participated in an unprotected strike, or
- you reached the end of a fixed-term contract.
How to claim for retrenchment cover
You need to prove that your employer is embarking on a legitimate retrenchment process or that the company is closing. This includes, but is not limited to:
- a certified copy of the letter of retrenchment, stating the reasons for it,
- a certified copy of your identity card or document, and
- a completed retrenchment claim form.
How to claim for loss of income
If you want to submit a claim because you can't earn an income or have lost at least 75% of your usual salary while still employed, we will need 3 months’ payslips and a letter from your employer explaining the situation and the reasons for your loss of income. If your salary is not paid into your Nedbank bank account, we will also need 3 months’ bank statements.
For more info on insurance, credit life policies and how they apply to retrenchment and personal loans, call us on 0860 333 111 or send an email to insurance@nedbank.co.za
