Discover why every South African borrower should have Payment Protection Insurance (PPP — how it works, what it covers, and how it protects your family and your credit.
Why Payment Protection Insurance Is Essential for Borrowers
Life is unpredictable. Illness, retrenchment, or even an accident can suddenly interrupt your ability to earn. For borrowers, this can lead to missed payments, legal action, and long-term damage to your credit profile.
That’s where Payment Protection Insurance (PPP) comes in — it acts as a financial safety net for both the borrower and the lender.
1️⃣ What a Payment Protection Policy Covers
A standard PPP typically covers:
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Death or Permanent Disability – remaining balance is settled in full
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Temporary Disability or Illness – monthly or weekly installments are paid on your behalf
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Loss of Income or Retrenchment – repayments are covered for a set period while you recover or find new work
This means your family keeps their peace of mind and your financial commitments remain intact.
2️⃣ Why It’s Mandatory at PienaarBank
PienaarBank requires every approved borrower to take out a Payment Protection Policy through a trusted, FSP-licensed insurance provider.
This ensures that:
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All loans remain protected against default from uncontrollable events
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Clients avoid the stress of arrears, legal fees, or asset repossession
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The lending process stays compliant with South Africa’s Financial Intelligence Centre Act (FICA) and responsible-lending standards
3️⃣ How It Works in Practice
When your loan is approved:
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You agree to obtain PPP coverage from our recommended provider.
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The insurer issues a certificate confirming cover.
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PienaarBank activates your loan once proof of cover is received.
In the event of a claim, the insurer settles directly with PienaarBank, ensuring your account remains in good standing.
4️⃣ The Real Value of Protection
Many borrowers view insurance as an unnecessary expense — until they need it.
For example:
A client with a R100 000 loan who becomes unable to work due to illness would still owe full repayments each week.
With PPP, those payments continue automatically for the covered period, protecting their family from financial strain.
5️⃣ How to Get Covered
Our lending team will refer you to one of our approved insurance partners during the loan-activation stage.
The policy is separate from your loan agreement but remains a mandatory requirement for release of funds.
Final Word
Financial responsibility includes protecting your future.
Payment Protection Insurance is not just a policy — it’s your assurance that, even in life’s most difficult moments, your loan remains secure, your assets protected, and your reputation intact.
