Consumer credit insurance is an add-on product associated with a loan or credit arrangement that may pay specified benefits after certain events. The eligibility criteria, exclusions and benefit limits are important when assessing whether it can be useful.
The distinction that matters
It does not remove the loan contract or guarantee that every missed repayment will be paid. Existing insurance, employment circumstances and alternative arrangements may affect its value.
What to check
- Whether the product is optional.
- Eligibility for each insured event.
- Waiting periods and payment limits.
- Total premium and any amount financed with the loan.
Example to discuss
Ask which benefit could apply to your employment situation and what happens if you pay the loan out early; do not accept a generic assurance that repayments are protected.
This is a hypothetical comparison, not a customer claim or a determination of cover.
Sources and further reading
General information only. The policy, schedule and applicable rules determine the actual position. For a personal decision, use an appropriately qualified adviser or the relevant provider.