Protection:

Death, critical illness and long term illness are the primary focus of protection insurance. All will result in financial loss if adequate insurance is not in place. A debt doesn’t just disappear when the borrower dies or suffers from a long‐term illness. Creditors aren’t well known for their benevolence in such circumstances. In the case of death, the deceased’s assets will be used, where possible, to repay the debt.

And, in the case of long‐term illness, a creditor will still expect a borrower to honour the terms of a credit agreement. So, some form of financial protection is necessary for most of us.