Clients of the Agricultural Bank of Namibia (Agribank) will start enjoying insurance benefits as the institution introduces a new credit life insurance product.

In a statement issued yesterday, Agribank spokesperson Fillemon Nangonya said the cover serves as a financial security and protection against unforeseen events.

The new cover will see that Agribank pays the client's loan instalments in cases where the client becomes permanently or temporarily disabled, is diagnosed with a serious illness or faces retrenchment.

"The insurance will cover the client's loan instalments for a specified period, providing essential financial relief during challenging times," said Nangonya.

He said the insurance cover will become a mandatory requirement for all eligible clients effective 1 July.

"However, clients will not be compelled to take up the Agribank credit life insurance, but they do have an option of providing an alternative life cover from an insurer of their choice," said Nangonya.