Loan protection insurance covers debt payments on agreed indebtedness in respect of the insured being unable to settle their debts due to a defined peril. Such an event or peril may be sudden and unforeseen death, Incapacitation either temporary or of a permanent nature, involuntary retrenchment, early retirement due to ill health or other perils depending on the particular policy issued. This facility works well for banks, financial institutions and retail merchants who wish to protect their disbursements or sales against the risk of payment default. The policy usually runs for a period of twelve months with an option to renew subject to premium payment.