Can your borrowers afford not to have payment protection?

You’ve heard the objections:

“I can’t afford to add payment protection to my loan or credit card because interest rates are too high.”

Or “I can’t afford it because of inflation is increasing my day-to-day expenses.”

It may seem difficult to justify spending money on payment protection, or debt protection, but it’s important.

Loan payments and credit card debt can be a significant monthly expense for families. Almost 40 percent of Americans would not have the money they need to cover monthly expenses in the event of an emergency.1 The loss of income due to disability, involuntary employment, or death could put a significant strain on a family.

In a recent survey by Securian Financial, 51 percent of consumers are concerned about making loan or credit card payments. And 64 percent are worried about loan defaults or overdue payments negatively impacting their credit score. This increases to 74 percent for Black, indigenous or people of color (BIPOC) consumers.

Payment protection supports financial well-being

This is why it’s important to offer payment protection to your borrowers. You can improve their financial well-being by helping them understand how payment protection is a simple, cost-effective way to cancel their loan balance or reduce monthly payments if they become disabled, unemployed or pass away.

Eight out of ten survey respondents (80 percent) were satisfied with their decision to purchase payment protection. And 84 percent did not think the price was too high.

“It doesn’t cost much, and it gives me peace of mind if something unexpected happens,” noted one consumer.

Tips to start the conversation

Start working payment protection into your conversations with customers. Ask them:

  • If you were to miss one month of paychecks, would you be able to pay your bills?
  • If you or your significant other/husband/wife were to be out of work, would you be able to cover your monthly expenses?
  • If an unpredictable event were to occur, such as an injury or illness or if you were to become unemployed, would it impact your ability to make your monthly payments?

Putting it in perspective

The cost of adding payment protection to a loan or credit card does increase the monthly payment; but you can help put the cost in perspective by sharing that it’s the cost of:

  • one cup of coffee a week from your favorite coffee shop
  • dining out once a month
  • a subscription or streaming service

Help your borrowers understand the cost relative to purchases they make every day.

Contact your Securian Financial representative  to discuss effective ways to offer payment protection.


Contact Securian Financial

Contact Securian Financial


  1. Key Savings Statistics and Trends In 2023, Emily Batfdorf, Forbes Advisor, Jun 29, 2023
  2. Unless otherwise noted, all statistics are from the Securian Financial proprietary survey conducted in February 2024.
This is a general communication for informational and educational purposes. The information is not designed, or intended, to be applicable to any person’s individual circumstances. It should not be considered investment advice, nor does it constitute a recommendation that anyone engage in (or refrain from) a particular course of action. If you are seeking investment advice or recommendations, please contact your financial professional.
Debt protection is a contractual liability policy issued to the credit union by Securian Casualty Company, a New York authorized insurer. Minnesota Life Insurance Company acts as the administrator of the credit union’s debt protection program. The credit union is independently owned and is not affiliated with Securian Financial.
DOFU 6-2024
April Persby

April Persby

April Persby is an Account Executive at Securian Financial Group. Web: Details