What is Creditor Protection Insurance (CPI)?
Creditor Protection Insurance is a life insurance cover that provides peace of mind to the borrower. CPI pays for unpaid loans left by the borrower and also provides his/her beneficiary with some extra financial support.
Who is the Life Insurance Company behind Creditor Protection Insurance (CPI)?
Creditor Protection Insurance is a underwritten by Sun Life Grepa Financial, Inc.
What does CPI cover?
CPI is a life insurance that covers death due to any cause.
What is the coverage of Creditor Protection Insurance (CPI)?
Creditor Protection Insurance covers 120% of the loan. So if you borrow 10,000 for a term of 12 months, you get a life insurance cover worth 12,000 for the whole term of the loan. This means that you are covered for 12 months.
How much does my Beneficiary get Creditor Protection Insurance (CPI)?
If you borrow 10,000 for a term of 12 months and 0% interest, you get a life insurance cover worth 12,000. Assuming the you pass away and you have only paid P4,000, your unpaid balance shall be paid by the insurance and your Beneficiary will get the excess benefits worth P6,000.
Is this mandatory? Do I have to get CPI?
CPI is voluntary. We do however encourage you to avail of this cover so you have peace of mind that if something happens to you, your loved ones will not have to worry about paying any unpaid loans.
Is there a fee for CPI? How much does it cost me?
CPI is very affordable. It will be small fee depending on the loan amount, and can be paid together with your installments. Please ask our Sales Associates about the insurance option when applying for your loan.
Who are Eligible?
All Home Credit customers under 65 years old may apply.
When is the Effective Date of Cover?
Customers are covered from the day their loan is signed.
Who can I nominate as Beneficiary?
CPI is intended to give peace of mind and security to your family. Because of this, we suggest that you nominate your close family members (example: husband or wife if you are married or any of your parents if you are single).