Skip to main content

Credit Life Insurance Overcharge Checker

Compare what you're being charged for credit life insurance against the National Credit Act's prescribed maximum — R2 per R1,000 for a mortgage, R4.50 per R1,000 for other credit.

Your Loan and Premium

Loan type

Mortgages have a lower cap than other credit agreements — R2 vs R4.5 per R1,000.

R
R

The cap only applies to agreements from 2017-08-09 onward.

Within the legal maximum

R300 vs R675 maximum

Your premium compared against the maximum for your outstanding balance

Why your premium might not match this

Regulation 3(1) allows the cost to be worked out either on your balance at the start of the loan or on your balance as it stands now. If your premium has stayed exactly the same since you took out the loan while your balance has gone down, that's worth raising with your provider directly — the National Credit Regulator's position, in a non-binding opinion published 31 March 2026, is that the premium should reduce as your balance does. That opinion doesn't change the Rand-per-R1,000 caps shown above, which have applied unchanged since 2017.

If you have concerns about a charged premium, you can raise it with your provider or the National Credit Regulator (NCR). Section 106(4)(a) of the National Credit Act also gives you the right to substitute a credit life policy of your own choice, provided it offers at least the same minimum cover.

South Africans pay around R15bn a year in credit life premiums against R1.5bn in claims
Credit life insurance is required by most lenders and pays out your outstanding balance if you die, are permanently disabled, or in some cases lose your income. The cap exists because premiums have historically run well above what the actual risk justifies.

Frequently asked questions

This is an estimate only, not financial or tax advice, and we are not a financial services provider (FSP). Your actual figures depend on your lender or provider, and your personal circumstances. This checks your premium against the published NCA maximum for your credit type — it doesn't tell you whether your specific policy is otherwise appropriate for your circumstances. For a genuine dispute, raise it with your provider or the National Credit Regulator.