Definition

A product that helps cover loan payments if you face financial hardships. It protects your credit score and eases the burden during tough times.

What to consider

  • Know what events trigger the insurance.
  • Review coverage limits and exclusions.
  • Consider the impact on overall financial planning.

Real world scenarios

  • An employee took out loan protection insurance to cover his student loan in case of disability.
  • A small business owner secured loan protection insurance for a bank loan used for expansion.
  • An individual purchased loan protection insurance to safeguard against job loss affecting loan repayments.

Related terms

Insurance & Financial Protection