CCI Insurance is cover offered with most credit instruments, though predominantly offered against Mortgages, Personal Loan and Credit Card contracts. Consumer Credit Insurance, also known as loan protection insurance, is an affordable way to cover your obligations under a loan agreement and to protect you and your family from the unexpected. A distinction also exists between Consumer and Business related Credit Insurance.
Why buy CCI Insurance?
The benefits of Consumer Credit Insurance include:
- Lump sum benefit payable on the event of death, terminal illness, TPD or trauma; as a fixed amount, the original loan amount or current balance.
- Income replacement benefit may include the events of sickness, accident or involuntary unemployment; paid as % of the original or current loan repayment or % of current credit card balance – typically (but not always) written by general insurers
What you need to know about Consumer Credit Insurance.
Please note the following about CCI Insurance:
- Practice varies from no underwriting to short-form questionnaire.
- “Claim” underwriting through PEC exclusion. PEC definition may vary between product types, with more restrictive conditions often imposed for larger sums insured
- Additional exclusions generally included (for example, suicide, war, self-inflicted injury, alcohol)
- Specific high risk activities often excluded, taking the place of underwriting loadings or exclusions.
- Eligibility criteria quite wide, usually ages of 18 and 60+. Additional employment criteria may apply
- Lump sum benefits from a few thousand for Loan, up to $1m+ on MPI. CC benefits vary from zero $100k.
- Disability maximum monthly benefit specified up-front. Absolute total benefit often equalling the lump sum benefit. Unemployment benefits often lower than Disability, with shorter benefit periods.
Put simply, CCI insurance can help you meet loan obligations in the event of death or trauma, disability or involuntary unemployment. It gives you (and your lender) the peace of mind that your loan repayments will be made, even when unexpected events occur. At Barling Finance we can recommend appropriate CCI insurance for your particular loan.