What does it do?
•••Credit protection insurance policies ensure that in the event of unemployment, illness, disability or death, loan payments continue to either be paid or the final balance is settled.
Who is it for?
Financial institutions, such as
Consumer finance providers
Credit card providers
Smart banks & mobile banking
Payment service providers
Retailers offering credit
Peer-to-peer lending platforms
Car Manufacturers & their finance companies
Private & Fleet leasing providers
What are the benefits?
The insurance pays the outstanding balance on the loan in the event that your customer dies.
Accident or Sickness:
If your customer has an accident or falls ill and can’t work, the monthly instalments on the credit agreement are paid for an agreed period of time. Where the instalment is not fixed, such as with a credit card, an agreed percentage of the total balance is paid each month.
If your customer is made unemployed, the monthly instalments on the credit agreement are either paid for an agreed period of time, or an agreed percentage is covered where the installment isn’t fixed. Policies sometimes also cover self-employed people if their business should fail.
Cover may be provided for cash sums if your customer stays overnight in hospital, or the full balance is paid if they’re diagnosed with a critical or terminal illness. Voluntarily giving up work to become a full-time carer to a family member may also be classed as involuntary unemployment.