MANILA, Philippines (Aug 2026) – A sudden medical expense of PHP 10,000 (approx. $175) is enough to throw 64 percent of Pinoy families into debt, but a new credit life insurance plan called Borrower Protection from AXA Philippines and Home Credit aims to break that cycle.
Under the Home Credit Protect ecosystem, Borrower Protection provides coverage of up to 120 percent of an outstanding loan balance. Should a borrower face critical illness, accident, or death, the policy automatically covers any unpaid loan obligation first. Any remaining balance is paid directly to designated beneficiaries, offering families financial support during difficult times.
No complex paperwork or high premiums
Securing insurance historically required steep payments and complicated medical evaluations. Borrower Protection eliminates these hurdles by integrating coverage directly into the standard Home Credit financing process. Supported by bolttech as third-party administrator, the plan makes financial resilience accessible to low-to-middle-income Pinoys with little to no credit history.
Closing the national protection gap
Despite insurance penetration in the country reaching 2.03 percent in early 2026, millions of households remain underinsured and vulnerable to sudden financial shocks. Without safety nets, many are forced to rely on high-interest lenders during emergencies.
AXA Philippines CEO Ayman Kandil shared that inclusive insurance plays a critical role in making protection accessible to those who need it most. He noted that credit life insurance not only shields families from debt burdens but also strengthens the financial ecosystem by helping lenders extend responsible credit to underserved communities.
Borrower Protection is integrated directly into everyday Home Credit loan transactions across partner stores nationwide.
