Definition

Covers your loan payments if you become unable to work due to illness or injury. It ensures that debt doesn’t pile up when you’re facing challenges.

What to consider

  • Understand the plan’s triggers and coverage.
  • Review any associated fees or costs.
  • Consider the plan as part of your overall financial strategy.

Real world scenarios

  • A recently divorced parent enrolled in a debt protection plan to cover loan repayments during periods of low income.
  • An entrepreneur set up a debt protection plan to ensure timely payments on business loans.
  • A homeowner opted for a debt protection plan to manage mortgage payments in case of job loss.

Related terms

Insurance & Financial Protection