BNP Paribas Cardif Life Insurance launches ‘Credit Care Loan Safe Protection Insurance (NP)’

September 26, 2022

BNP Paribas Cardif Life Insurance announced the launch of ‘Credit Care Loan Safe Protection Insurance (NP)’ to support customers’ safe loan repayment and healthy credit management. This product will be provided through General Agency (GA) affiliated with BNP Paribas Cardif Life Insurance.

BNP Paribas Cardif Life Insurance is the life insurance subsidiary of BNP Paribas Cardif in Korea, the insurance arm of BNP Paribas, and the world leader in creditor insurance.

As interest rates continue to rise amid the household loan deregulations, the risk of household debt insolvency is growing nowadays. Under this situation, the importance of safe loan repayment and credit management, which is the basic for having a healthy financial life, has been more emphasized. ‘Credit Care Loan Safe Protection Insurance (NP)’ is a product that repays loans in case of an unexpected accident during debt repayment, and policyholder can get a premium discount benefit through the industry’s first ‘Insurance Risk Score (IRS) Discount Rider’ applied to this new product.

‘Insurance Risk Score’ indexes the level of occurrence of insurance accidents based on the personal credit data, such as loan and card usage, registered in credit information company. This score was developed by BNP Paribas Cardif Life Insurance in collaboration with RGA Reinsurance Company. Depending on the Insurance Risk Score calculated for each section, the main contract premium is discounted by up to 10%. It can be recalculated once a year, and if this score improves, a larger discount rate is applied. Even if the score falls, he/she can maintain the previous premium discount rate, so this will be applied only in the direction of improving customer benefits. A policyholder of ‘Credit Care Loan Safe Protection Insurance (NP)’ can calculate his/her Insurance Risk Score with ‘MY Credit Care Service’ and check various contents that help with credit management and improvement.

Jeong Soo Han, the Head of Product Development department at BNP Paribas Cardif Life Insurance said, “Creditor Insurance is a way for borrowers to prepare for the risk of debt repayment. In addition to this, we support our policyholders to manage their ‘credit’, the basic for a healthy financial life, along with the benefits of ‘Insurance Risk Score (IRS) Discount Rider’ which acquired the exclusive sales right from the Korea Life Insurance Association (KLIA). We hope that it will become a product that contributes to a virtuous cycle in which customers receive premium discount benefits through their credit management, insurance companies lower the risk of insurance accidents through customer’s credit management, and socially reduce problems resulting from household default.”

The ‘Credit Care Loan Safe Protection Insurance (NP)’ can be subscribed from the age of 19 to 65, and in addition to the main contract that guarantees death, policyholder can also prepare for cancer, cerebral hemorrhage, acute myocardial infarction, and TPD (Total Permanent Disability) through special contracts. In case of subscriber with the age of 40 who receives the 10% of maximum discount rate (IRS section 1), the monthly premium is KRW 27,810 for men and KRW 18,000 for women (Standard: face amount of KRW 100 million for the main contract, 20 years of maturity, whole period, monthly premium frequency).

In addition, BNP Paribas Cardif Life Insurance is implementing a ‘Credit Care Program’ so that general customers and financially vulnerable groups other than subscribers can understand the concept of credit and manage it steadily. To provide useful contents for safe loan repayment and wise credit management, a ‘Credit Care Guide’ was newly established on the official website. For the financially vulnerable, the ‘Credit Care Academy’, which reorganized existing economic education CSR activities, is undergoing in order to more focus on the education for credit management.