Consumer Credit Insurance – Insurance in Australia
Consumer credit insurance (CCI) covers you if something happens to you that affects your ability to meet your credit repayment. CCI covers your payments in the event of death, permanent disability or loss of income due to injury, illness or involuntary unemployment. CCI does not cover you if you resign from a position. Your CCI policy may pay the outstanding balance owed in a lump sum or cover your repayments for a period of time.
You may be offered CCI cover by your lender when it approves your credit, such as a credit card, personal loan or mortgage. Check that the lender’s product suits your needs – it is wise to get other quotes as you might find a CCI policy that suits you better through another insurer. Consumer credit insurance is not compulsory. If you are interested in buying it, work out if it offers you real value for money.