Loan Protection Plan: Protect Yourself From Late Payments

On a first note, you may be thinking about why would you need a loan protection plan? You earn enough to afford a loan so you can pay it back too. But on that note, ask yourself, why are you reading this article then?; cause you also know that on a loan term, a loan protection plan can be the financial safety net that can protect you from any late payments in the future. It can ensure that your loan is paid for in time without any hassle. You have come to the right place for all the things that you need to know about loan protection plans. Read on to find out more.

The obvious question: how does it work?

Well, it’s in the name itself: loan protection plan. When you apply for a loan protection plan, you would be taking up a policy that can help you pay off your monthly debts to a certain amount. Loan Protection Plan can come in handy if you can’t pay for a month due to an emergency, situations like illness and injury when your finances will be diverted to more essential needs, your health.

A loan protection policy can offer coverage from 12-24 months, and if in the really long term, it can be up to 65 years. We all know that emergencies do not come with warning signs, and for financially challenging times which may restrict you from paying off your loans in time, this policy can be your savior. It can help you pay off your mortgage, credit card bills, personal loans, car loans, and much more. You can find out more details about loan protection plans by getting in touch with the team at Canadian LIC. They are a group of professionals who have been in the insurance trade for quite a while now and have made a good name for themselves; contact today!

Reap the benefits come with a loan protection plan:

  • If you’ve lost your job due to health issues such as disability or any critical illness, then a loan protection plan can make your monthly loan payments
  • It can offer your family financial protection and reduce the financial burden on them
  • In some instances, a loan protection plan may also provide tax benefits
  • The policy includes coverage for all types of loans, including student, business, and vehicle loan, so you’re cover from all aspects, and you don’t have to worry about any financial burden

Do I need a loan protection plan?

It depends on your financial needs. Applying for a loan protection plan is not an absolute requirement, but if you so take it up, it nearly ensures that your loan will be repaid on time. Not to mention it instills confidence in the broker as well, that they will get their money, and your credit score also doesn’t take a hit. You can find out more about this policy and others, such as critical illness and term insurance policies, by calling Canadian LIC; we will be more than happy to help.