What is a Lifestyle Protection Plan?

‘Lifestyle Protection Plan’ can sometimes be referred to as Risk Cover, Credit Protection, Disability Income Protection, or Critical Illness Cover. The variety of protection plans come in various shapes and forms and differ according to specific offerings.  Essentially, they take care of your financial obligations should you suffer a loss of income. This means you will not need to worry about the everyday cost of living expenses such as bills and other financial commitments if you become critically ill or suffer a disability that leaves you unable to continue earning an income. Think of it as a cushion should anything happen to you where you’re not able to continue paying your debts.

Benefits of a Lifestyle Protection Plan

Illness or disability is a devastating occurrence and can occur when you least expect it. Heart disease and stroke are the biggest killers after HIV/AIDS in South Africa and more die of cardiovascular disease than all cancers combined. According to the Heart and Stroke Foundation South Africa (HSFSA):

215 people die every day from heart disease or strokes, and every hour in South Africa:

a)     5 people have heart attacks,

b)    10 people have strokes and of those events,

c)     10 people will actually die from it.

Lifestyle protection becomes extremely beneficial not only to you but to your family too, as it helps you meet your monthly expenses while you focus on recovery back to wellness.

With an Auto Pedigree Lifestyle Protection Plan, if you purchased a car and tragedy hits before you’ve finished paying off the instalments, at least you are free from the worry of your vehicle debt. Whether it’s dread disease, a disability, or even if your living conditions change temporarily, such as retrenchment or illness, where you’re not earning an income for a lengthy period, the plan provides peace of mind that your vehicle payments will be covered.

For example, you purchase a car and have it financed through a bank. Some months later you fall ill and are unable to continue working. With the Lifestyle Protection Plan you don’t need to worry about the monthly instalments you would normally pay because it will take care of the outstanding amount owed to the bank.

Cover in a Nutshell

As mentioned, all plans are unique in their requirements and what they cover, however, there are many commonalities. These are examples of what typical lifestyle protection plans cover should any of them happen to you resulting in a loss of income:

  • Retrenchment – Full monthly instalment for a period of time
  • Temporary Disability – instalments for the period
  • Permanent Disability – Total outstanding balance
  • Dread Disease/Critical Illness – Total outstanding balance
  • Death – Total outstanding balance

Examples of dread diseases typically covered:  Heart attack, cancer, organ transplants, coronary disease (surgery), kidney failure, stroke, Alzheimer’s, and Parkinson's disease.

In today's circumstances when life is as unpredictable as ever, it makes sense to be prepared. If you’re looking to get lifestyle protection on your car, contact an Auto Pedigree dealer to discuss your needs.