Credit insurance and debt protection programs are designed to provide a safety net for you should the unexpected occur when you have one or more outstanding loans. These programs help you keep current on your loan by covering payments (or even reduce the loan balance to zero). When an unforeseen event occurs like loss of life, sickness or injury, job loss, damage to the collateral securing the loan, or other perils.
Where to purchase
The programs are available through banks, credit unions, finance companies, retailers and automotive dealers. You typically enroll in protection at the time of you take out the loan. In return for a fee or premium, your loan payments (or balance) are “covered” should a qualifying event occur.
The programs can help you reduce the risk of loan delinquency, thereby ensuring you have one less thing to worry about during a time typically fraught with emotional and economic stress.