UnionDigital Bank has partnered with Chubb to launch a complimentary insurance protection programme for its digital loan customers.

The initiative aims to address financial risks and improve financial inclusion in a market where almost half of all Filipinos remain uninsured, according to a company press release.

Eligible borrowers receive automatic coverage upon loan approval without any additional fees or extra enrolment steps.

The UD Loan Protect programme covers up to 100% of the principal loan amount if a user suffers an accidental death.

Chubb will also settle outstanding balances for customers who experience permanent disablement while the loan remains active.

Any excess insurance benefit remaining after the loan settlement will be released directly to the borrower or their designated beneficiaries.

The policy includes temporary disablement benefits that pay 10% of the minimum monthly loan payment during the recovery period.

Customers also receive a cash assistance payout in the event of death due to illness.

Retail users qualify for the coverage if their loan amount is PHP 30,000 or less with a repayment term under six months.

The digital bank continues to expand its consumer credit products following recent capital approvals to scale its mobile application services.

Featured image: Edited by Fintech News Philippines based on an image by freepik via Magnific.