Retrenchment insurance dont pay your monthly insta

Retrenchment insurance don't pay your monthly installment when you get retrenched. My monthly premium was R2970, when I got retrenched they only paid R335 per month. So how do you justify the insurance if they dont pay the installment and only a small p[art of the installment. When I app**** for the loan they said that they pay the premium if something happens for a year. If you calculate it you loose roughly R2635 per month that they don't pay when you get retrenched. So why do you want to take a loan with someone that tells you only what you want to hear so they can give you the loan. I really think this is *****, how can they do that.