Could SA’s women save even more by focusing on Credit Life Insurance?

Women have held South African homes together over many years with a remarkable ability to save and make money stretch, even in the context of apartheid, forced poverty and migrant labour. It’s no exaggeration to say our mothers and gogo’s have been the bedrock of South African family life for generations. But South Africa’s leading Credit Life Insurance company, Yalu, says they could be achieving even more – if there was better understanding among consumers about how Credit Life Insurance works.
Yalu’s name has become synonymous with Credit Life Insurance, the most unknown form of long-term insurance in the market. The company’s unique offering gives South African consumers an opportunity to save money every month on their Credit Life Insurance policies and earn a portion of their premiums back at the end of the credit facility. So, why are the country’s best money savers not taking more advantage of this obvious opportunity to add to the family coffers?
‘Awareness is the big issue,’ says Tlalane Ntuli, Yalu’s co-founder and Chief Operating Officer. ‘A lot of South Africans are in the dark about Credit Life Insurance. Some don’t even know whether they have this policy or not, and many are unaware that they have the right to choose their own provider and save money every month in the process.’
Credit Life Insurance covers borrowers against their debt in the case of retrenchment, disability or death. This type of insurance is often (but not always) mandatory for certain types of debt and is generally offered by the same financial institution offering the loan. The fees charged for such policies can vary dramatically, and as a result, a lot of consumers might find themselves unwittingly paying the maximum possible premium every month – creating room for savings if they were to choose a different provider.
‘We have a strong culture of stretching scarce financial resources in our communities, and we need to grow this by making sure our mothers and gogo’s are aware of the savings re-looking Credit Life Insurance offers,’ says Ntuli. ‘I have no doubt that as families become more aware of what they can achieve financially they will start to take advantage of the opportunity.’
Consumers looking to optimise their monthly budget can visit the Yalu web site and go through a quick 5-minute process that allows them to view their credit facilities and understand what they’re likely to save on Credit Life Insurance every month.
According to Ntuli, there are three key things every Credit Life Insurance policyholder should know: how much the policy is costing them, what it covers them for and how and where they should claim. Unfortunately, this information is not always made easily accessible by all service providers.
‘A comparison of premiums over time is also an important consideration,’ she adds. ‘A lot of service providers don’t reduce the policy premium as the loan amount reduces. So, premiums may seem equal right now, but if you compare them over the lifetime of the loan, you’ll find a lot of money that should be in the consumer’s pocket but isn’t.’

Even though there is clear irony in the fact that South Africa’s communities, famously skilled at stretching monthly income a long, long way, are missing out on hundreds of Rands in savings a month, Ntuli feels the tide is slowly turning, and that more and more women are empowering themselves with knowledge, which is further enabled by the various empowerment platforms created in Women’s Month.

‘The good news is that awareness around these issues is definitely improving,’ she says. ‘There are clear actions every household can take to improve their monthly budget, and we can boost awareness particularly well during Women’s Month when there is a lot of national focus on female empowerment. If we keep pushing for better financial awareness, our matriarchs will improve on the incredible, nurturing work they’ve performed for so many years.’