Protect Your Credit

Payment protection insurance (PPI), also known as credit insurance, credit protection insurance, or loan repayment insurance, is an insurance product that enables consumers to ensure repayment of credit if the borrower dies, becomes ill, disabled, loses a job, or faces other circumstances that may prevent them from earning income to service the debt. It is not to be confused with income protection insurance, which is not specific to a debt but covers any income. PPI was widely sold by banks and other credit providers as an add-on to the loan or overdraft product.

💡 What is Credit Insurance?

Credit insurance protects lenders and businesses if borrowers are unable to repay their debts. It can also shield companies from losses due to unpaid invoices.

🛡️ Types of Credit Insurance

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Trade Credit Insurance:

Protects businesses from losses due to unpaid invoices.

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Credit Card Insurance:

A small monthly fee covers your unpaid credit card balance.

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Credit Life Insurance:

Pays off your debts in case of death.

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Credit Disability Insurance:

Covers your debts if you become disabled.

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Credit Unemployment Insurance:

Assists with debt repayment during job loss.

⚙️ How Credit Insurance Works

  • Most policies include a deductible before coverage starts.
  • The insurance provider pays directly to the lender after a claim.
  • Costs vary by coverage type and insurance provider.

🎯 Benefits of Credit Insurance

  • Helps businesses grow with reduced financial risk.
  • Gives borrowers peace of mind during life’s uncertainties.
  • Ensures debts are paid during illness, death, or job loss.