credit insurance, credit protection insurance, or loan repayment insurance, is an insurance product that enables consumers to insure repayment of loans if the borrower dies, becomes ill or 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 is widely sold by banks and other credit providers as an add-on to the loan or overdraft product.
Insurance that provides protection and guarantees the insured recipient credit/debtor in
Died because of an accident
Died due to illness (natural)
Permanent disability due to an accident, so it cannot continue its obligations to the Bank or lender (creditor), then against the risks of the insurance company as an insurer shall be obliged to pay off the loan or liability of the insured.
Credit insurance can be purchased to insure all kinds of consumer loans including car loans, loans from finance companies, and home mortgage borrowing. Credit card agreements may include a form of PPI cover as standard. Policies are also available to cover specific categories of risk, e.g. credit life insurance, credit disability insurance, and credit accident insurance.
PPI usually covers minimum loan (or overdraft) payments for a finite period (typically 12 months). After this point the borrower must find other means to repay the debt, though the period covered by insurance is typically long enough for most people to start working again and earn enough to service their debt.[3] PPI is different from other types of insurance such as home insurance, in that it can be quite difficult to determine if it is right for a person or not. Careful assessment of what would happen if a person became unemployed would need to be considered, as payments in lieu of notice (for example) may render a claim ineligible despite the insured person being genuinely unemployed. In this case, the approach taken by PPI insurers is consistent with that taken by the Benefits Agency in respect of unemployment benefits.
Insurance that provides protection and guarantees the insured recipient credit/debtor when experiencing a termination of employment (JOB CUTS) so that it cannot continue its obligations to the Bank or lender (creditor), then against the risks of the insurance company as an insurer shall be obliged to pay off the loan or liability of the insured.
Benefits
In the program there are 3 types of Credit Insurance coverage is guaranteed are:
The remaining loan payments without interest and arrears
Payment of the remaining loan is in arrears and interest plus a Max of 3 months
Payment of the initial loan (full limit)
Debtors that can be guaranteed is aged 20 – 64 years with the maximum age at the time the credit is paid off is 65 years old and in a State of healthy physical and spiritual with the formula:
x + n = 65.
x = age
n = the period of Insurance/loan period
So, find out exactly what it costs, what it covers. and when and how it pays before you sign up. In its essence it is of value to a relatively small percentage of cardholders -- make sure it doesn't simply double coverage you have somewhere else (in insurance policies or through your workplace) or that it won't end up costing you more than it's worth (do some quick calculator work).
You can insure yourself against being unable to pay if you are disabled or lose your job. And you can cover yourself so that if you die your card debt (or most of it) can be paid off.
Credit insurance is usually offered as a mix of life, disability, and unemployment coverage. It is intended to cover your minimum monthly payment if you can't pay because of a job loss or disability and to pay off all, or most, of your balance if you die.
You can insure yourself against being unable to pay if you are disabled or lose your job. And you can cover yourself so that if you die your card debt (or most of it) can be paid off.
Credit insurance is usually offered as a mix of life, disability, and unemployment coverage. It is intended to cover your minimum monthly payment if you can't pay because of a job loss or disability and to pay off all, or most, of your balance if you die.
Ask Questions Before Paying for Credit Card Insurance
Do you really need credit card insurance? If so, are the card insurance programs being offered to you a good deal? The answers depend on which of the many forms of credit card insurance you're considering... and who's offering it.
There is, for example, insurance to pay your credit card bills if you become disabled or you lose your job. This type of insurance may be a good thing if your other potential sources of income wouldn't be enough to pay your monthly debts. But, there may be a waiting period before you'd receive your first benefit payment, and the insurance may only pay the minimum card payment each month (up to the policy coverage limit). So, unless you are disabled or out of work for a very long time, the cost of the premiums could easily exceed any monthly benefits.
Likewise, insurance that will pay off card balances if you die may make sense only if you have a lot of credit card debt and little or no other life insurance. In general, you might be better off insuring yourself against income loss or death by purchasing regular disability or life insurance instead of credit insurance.
Some credit card protection plans are basically notification services—they'll contact your card issuers if your cards are lost or stolen and arrange for new cards, or maybe they'll periodically send you copies of your credit report so you can review it for accuracy. "This may be a useful service for some people, but it offers nothing you cannot do yourself with a minimum amount of effort. If you think you want this kind of service, though, you should first ask your card issuers if they offer the same service more cheaply or at no cost.
Some telemarketers are aggressively selling insurance that covers the fraudulent use of your credit card. Do you really need that kind of credit card insurance? Most experts say no. Federal law already limits your liability to the first $50 of fraud losses per account, provided you make a reasonable effort to notify the card issuer of any lost or stolen cards within a reasonable period of time. And in many cases, the issuer will waive the $50 requirement. If your card issuer still insists on the $50 payment, check with the company that insures your home, because your existing policy may cover that loss.
Never to give your credit card number to anyone selling credit card loss protection insurance over the telephone, because you may be dealing with a con artist who could make unauthorized charges to your card.
Do you really need credit card insurance? If so, are the card insurance programs being offered to you a good deal? The answers depend on which of the many forms of credit card insurance you're considering... and who's offering it.
There is, for example, insurance to pay your credit card bills if you become disabled or you lose your job. This type of insurance may be a good thing if your other potential sources of income wouldn't be enough to pay your monthly debts. But, there may be a waiting period before you'd receive your first benefit payment, and the insurance may only pay the minimum card payment each month (up to the policy coverage limit). So, unless you are disabled or out of work for a very long time, the cost of the premiums could easily exceed any monthly benefits.
Likewise, insurance that will pay off card balances if you die may make sense only if you have a lot of credit card debt and little or no other life insurance. In general, you might be better off insuring yourself against income loss or death by purchasing regular disability or life insurance instead of credit insurance.
Some credit card protection plans are basically notification services—they'll contact your card issuers if your cards are lost or stolen and arrange for new cards, or maybe they'll periodically send you copies of your credit report so you can review it for accuracy. "This may be a useful service for some people, but it offers nothing you cannot do yourself with a minimum amount of effort. If you think you want this kind of service, though, you should first ask your card issuers if they offer the same service more cheaply or at no cost.
Some telemarketers are aggressively selling insurance that covers the fraudulent use of your credit card. Do you really need that kind of credit card insurance? Most experts say no. Federal law already limits your liability to the first $50 of fraud losses per account, provided you make a reasonable effort to notify the card issuer of any lost or stolen cards within a reasonable period of time. And in many cases, the issuer will waive the $50 requirement. If your card issuer still insists on the $50 payment, check with the company that insures your home, because your existing policy may cover that loss.
Never to give your credit card number to anyone selling credit card loss protection insurance over the telephone, because you may be dealing with a con artist who could make unauthorized charges to your card.
Learn with good proposals the offer presented by the agent/broker is primarily over the risks guaranteed and no guaranteed, requirements that must be met, the way the premium payment, the liability of the insured in case of loss or damage.
Ensuring the financial health of insurance companies that will insure the risk.
Ask the agent from the agents card offers if through an agent.
Fill out the petition for Closing Insurance with real data in full and signed by the prospective insured himself.
What you pay is usually fixed by what your last bill was because the premium covers only what you owed at that time (not new card bills you have run up).
Remember that credit insurance is voluntary, and that rates are regulated by your state insurance commissioner (so you can check to make sure you aren't getting ripped off).
Some policies have caps that limit the total liability. Know what that amount is so that you don't run over it in any month.
It's easy to add to your credit card (just ask the card issuer) and usually easy to get rid of (since you pay a monthly premium, it can be instantly cancelled).
Neither unemployment nor life card insurance is really popular, and only a minority of card owners use them. They are most popular with people who do not have other insurance that might cover debts incurred by loss of job, disability or death.
Remember that credit insurance is voluntary, and that rates are regulated by your state insurance commissioner (so you can check to make sure you aren't getting ripped off).
Some policies have caps that limit the total liability. Know what that amount is so that you don't run over it in any month.
It's easy to add to your credit card (just ask the card issuer) and usually easy to get rid of (since you pay a monthly premium, it can be instantly cancelled).
Neither unemployment nor life card insurance is really popular, and only a minority of card owners use them. They are most popular with people who do not have other insurance that might cover debts incurred by loss of job, disability or death.
Usually there are three conditions required before a guarantee is given, namely:
Free Cover; where the insurer can receive prospective insured automatically records the condition of the insured are in a healthy state and or not treated because of suffering from a specific disease.
Non Medical; where the insured is obliged to fill out the sheet candidate Affidavits Health Insured in advance when filing a request for insurance, and when in the SKKT health conditions unfavourable or ever get sick then next is the Medical requirements
Medical; where the prospective insured compulsory filling SKKT/affidavit of Debtor conducts a medical examination beforehand, the acceptance of coverage are determined based on the results of the examination.
What to look for in buying the product?
A letter of offer from the company
Make sure the dealer certified
Make sure the data in the certified were in accordance with the actual conditions
Read the contract/policy carefully and ask to the Agency/company if there is any doubt over the conditions of the policy.
Asking for change (endorsement) if there is a data error in the given policy.
This type of insurance policy validity term per the closure or open the cover.
What to do when it does not correspond to what is exchanged?
Refer to policy conditions agreed upon in the settlement of disputes, actions that can be performed include:
Asking for clarification to the company either through the dealer or directly to the company for the peace process or discussion between the parties.
If you still haven't found an intersection can choose dispute resolution through arbitration or dispute resolution through the courts. 
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