Many lenders recognize the importance of protecting borrowers against unexpected hardships such as loss of life, disability, and involuntary job loss. These debt protection benefits make up a robust program that drives revenue and growth for your business.
But today’s borrowers face another very real risk—being diagnosed with a serious illness. According to the Center for Disease Control, an estimated 129 million people have at least one chronic disease, such as heart disease or cancer.1 Being diagnosed with a critical illness is more common than you might think. And it’s expensive.
Adding a critical illness benefit to your debt protection program provides the comprehensive protection that your borrowers desire.
A real need
A critical illness can have devasting effects on a person’s finances. Medical debt continues to be a significant problem in the United States despite over 90% of the population having some sort of health insurance.2 It’s easy to see how medical bills, treatments and hospitalization costs can pile up while other expenses such as housing and loan payments remain. Offering critical illness protection on the loan can help offer a sense of peace of mind, knowing their loan is taken care of while they face the costs—and health effects—of a critical illness.
How it works
Critical illness protection covers borrowers when diagnosed with a heart attack, stroke or cancer. It cancels up to 3, 6, 9 or 12 monthly loan payments upon diagnosis.
The critical illness benefit is designed to enhance your debt protection program. It is stacked with disability, involuntary unemployment, or loss of life, which means borrowers can receive multiple benefits as these events occur and warrant a claim. For example, a critical illness can lead to disability or even take someone’s life. When bundled with involuntary unemployment, disability and life, borrowers are covered from whatever life may throw their way.
The difference between disability and critical illness protections
It’s true that disability protection involves illnesses and accidents. And while both benefits cancel loan payments, the events that trigger them differ.
