Loans can help us start our own business, buy a new car, build a new home or even help our children complete their education. However, once you have a loan, you may be unable to pay it back due to some unforeseen events, like accidents, illness or even unemployment.
This is where loan protection insurance can help us. By investing in this insurance, you can help make your monthly payments, protect yourself from being tagged as a defaulter, protect your credit score and even ensure that your family does not have to bear the debts or liabilities.
So, if you are wondering if you need to invest in loan protection insurance, there are a few things you need to keep in mind.
What are the costs?
The cost of loan protection insurance varies based on where you live, the type of insurance you want and how much coverage you like to have. Age-related policies also consider how old you are. Loan protection insurance is not expensive
If you are considering this insurance, then make sure you review the costs, coverage, benefits, exclusions and limitations to find a policy most suitable for your needs and budget.
While this insurance is purchased when loans or credit cards are approved, some insurance providers also provide you with the option to purchase insurance at a later date.
Benefits of loan protection insurance
• You needn’t worry about loan payments in time so financial crises, such as illness, accident. This is because the insurance benefits can help make loan or credit card payments.
• Having a loan protection insurance policy can help you maintain a good credit score since the policy helps you keep up-to-date with loan payments.
• Loan insurance is not mandatory in order to get approval for a loan or a credit card. Some insurance providers even offer policies that can be purchased at a later date.
What to look out for
An insurance policy will contain exclusions and limitations. Make sure to review them all when determining if a policy is right for you. Also, make sure you qualify for submitting claims. The last thing you need during an emergency is learning that you don’t qualify to submit a claim.
Understand which circumstances are excluded from the coverage. The exclusions can be the type of employment, the age of the insurer, or even certain medical conditions.
Make sure you know all the insurance terms and conditions. If the information is not available in the company website, then request the insurance provider to give you the terms and conditions before you sign up. If the provider is hesitant, move on to another provider.
Feel free to get in touch with us to find a loan protection insurance policy that suits you best. We’ll be happy to assist you.