Tovic Salvador

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Aneth Ng-Lim

<p>It’s the season for tightening belts, but life goes on and so must spending.  When cash falls short, Filipinos turn to loans and credit cards to help manage everyday expenses, plus emergency medical costs, or tuition, or even business capital. </p><p>But borrowing also creates long-term obligations. In case of illness, disability, or death, unpaid balances can quickly become a financial burden for the income earner and families.</p><p>To address this risk, banks and digital financial platforms now offer Borrower Protection Insurance, also known as credit life insurance or payment protection plans. These products are typically linked directly to loans or credit cards and can be claimed to settle or reduce outstanding balances when certain events occur.</p><p>Here are some of loan protection products currently available in the market.  They’re listed in alphabetical order so don’t consider the ranking as recommendations.  And always good to research and read the fine print.  I find that customer reviews can be generally helpful before signing on to anything. </p><div><strong>#1 BDO: Credit Life Insurance through BDO Life </strong></div><p>When taking out a housing loan from BDO, you’ll find that a credit life insurance from its subsidiary BDO Life is bundled as part of the product.  Signing up for credit life insurance means that if the borrower passes away while the loan is still active, the outstanding balance gets settled.</p><p>This arrangement safeguards the borrower&#x27;s family and the bank. This isn&#x27;t really unique to BDO as many banks in the Philippines require the same from their housing loan and car loan borrowers.</p><div><strong>#2 BPI: Smart Credit Secure</strong></div><p>Exclusively for BPI cardholders ages 18 to 64 years old, Smart Credit Secure is a credit life insurance plan that pays off the cardholder’s outstanding credit card balance if something unexpected happens before the debt is fully paid. This is available through the partnership between BPI and BPI AIA.</p><p>Some plans can start with premiums as low as about P284 per month for P200,000 coverage, depending on the plan selected. If claimed, after settling the BPI card balance, any remaining funds will be paid to the beneficiary.</p><div><strong>#3 GCash: GLoan Protect</strong></div><p>If you’re taking out a GLoan, GCash’s in-app personal lending feature, it will likely be . bundled with GLoan Protect. The insurance is underwritten through the platform’s digital insurance marketplace, GInsure.</p><p>With GLoan Protect, coverage includes: (a) Loan repayment insurance in case of death or permanent disability; (b) Hospital confinement allowance up to P500 per day during confinement; and (c) Maximum protection up to P1 million across active loans.</p><p>Because the protection is automatically added and free for eligible borrowers, this has made borrower protection more accessible to Filipinos who rely on digital lending rather than traditional bank loans.</p><div><strong>#4 Security Bank: Balance Protect</strong></div><p>Similar to BPI’s Smart Credit Secure, Security Bank’s Balance Protect acts as a credit card life insurance policy. If a covered event occurs, the insurance settles the outstanding balance on the card.</p><p>From a quick scan, the coverage includes: (a) Death benefit that pays up to 200% of the outstanding credit card balance, capped at P2 million; (b) Critical illness benefit; (c) Total and permanent disability benefit; and (d) Additional family assistance benefit paid to beneficiaries.</p><div><strong>#5 Union Bank: U-Shield Premier</strong></div><p>Another credit card loan protection product is U-Shield Premier from Union Bank.  When a cardholder signs up, the premium will be computed at 0.76% of the monthly outstanding balance. With U-Shield Premier, you can enjoy coverage up to 400% of outstanding balance upon death, 100 percent for critical illness, and hospitalization benefits if confined for at least 3 days. </p><p>These borrower protection products started as optional add-ons, then built-in for major debts, and now marketed as stand-alone products.  For consumers, this means borrower protection is becoming easier to access, and hopefully also more affordable.  And in a country where many households rely on credit for major expenses, having that safety net can make all the difference between a temporary setback and a long-term financial crisis.</p>

<p>When cash falls short, Filipinos turn to loans and credit cards to help manage everyday expenses, but borrowing also creates long-term obligations.</p>

When cash falls short, Filipinos turn to loans and credit cards to help manage everyday expenses, but borrowing also creates long-term obligations.

Can you insure yourself against unpaid loans and credit card bills?

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Can you insure yourself against unpaid loans and credit card bills?

Aneth Ng-Lim

Published Mar 24, 2026 12:54 PM PHT

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personal finance

credit card

insurance

balance transfer

Aneth Ng-Lim

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