Customer research[1] illustrates the peace of mind that voluntary protection products like credit insurance and debt protection deliver to purchasers and their loved ones:

  • Several years ago, Helen of Springfield, Missouri, suffered a debilitating stroke. She says, “Debt protection was an integral part of what carried me through the most difficult time in my life.”
  • Pamela of Patton, Pennsylvania, also found peace of mind in her credit insurance, “[Credit insurer] kept this from being a very stressful situation.”
  • Sheliah and her husband are residents of the area in southeast Louisiana that was devastated by floods in 2016. “I will definitely use [the debt protection product] again, for sure,” Sheliah says. “I never thought a finance company would help, and then they pay off my loan and give me a check for [the loan cost]. Since then, I have told everybody what a help this has been.”
  • Michele from Shelby, North Carolina, says of her credit insurance, “I was laid off from my job after 10 years of service. My only source of income is unemployment compensation, which is barely enough to make ends meet. I don’t know what I would do if I didn’t have [credit insurance].”
  • Larry of Deadwood, South Dakota, could stay in his home after he was disabled. “This is a great comfort to my wife and me.”

Longitudinal research over more than three decades show that consumers favorably view the products. The highly regarded University of Michigan Survey Research Center conducted a recent survey of consumer attitudes and purchase propensities of these products. Published in December 2017, analysis of the survey by two Federal Reserve Board economists shows that:

  • [Purchasers] are somewhat otherwise less insured…and more frequently have either health, financial, or possibly both kinds of concerns.
  • 100 percent of consumers surveyed – purchasers and non-purchasers — understood the product purchase decision was voluntary
  • Roughly 20 percent of American adults have purchased these products, aimed at fostering personal financial peace of mind
  • Almost 85 percent of consumers who had purchased the products felt the products were a “good idea”
  • Over 70 percent of purchasers would purchase the products again[2]

[1] Source: Member companies of the Consumer Credit Industry Association (CCIA). CCIA is a national trade organization fostering consumer financial security by assuring a healthy market for consumer asset and credit protection products such as credit insurance, debt protection, GAP and service contracts.

[2] Durkin, Thomas A., and Gregory Elliehausen (2017). \New Evidence on an Old Unanswered Question: Why Some Borrowers Purchase Credit Insurance and Other Debt Protection and Some Do Not,” Finance and Economics Discussion Series 2017-122. Washington: Board of Governors of the Federal Reserve System,

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