Why should you choose a loan protection plan?

The question shouldn’t be why you should but why shouldn’t you? A loan protection plan is specifically designed to provide policyholders financial, support in times of need. Whether it’s because of unemployment or disability, this type of policy can cover monthly payments towards any loan that you might have taken and protected you from being a defaulter. Here, we will briefly discuss what the policy is about and how it helps you during your financial crisis. The key features of a loan protection plan can be summed up to three important points:

  • It is a type of insurance policy that covers debt payments in case the insured is not able to pay off due to sickness or injury
  • The reason can be anything from being disabled, severely ill, or loss of a job, all is covered.
  • The cost for a loan protection plan can vary as many factors such as age, health and outstanding debt plays a role.

For further details, get in touch with the Canadian LIC. We look forward to hearing from
you.

How does it work?

Loan protection plans can be short term to long term coverage up to age 65. Anyone between the ages of 18-54(who are working) can opt for this plan. There is one criterion which is that the purchaser has to be working a minimum of 21 hours per week on a long term contract or be self-employed for a specified period of time.

The advantages of a loan protection plan

  • It helps you maintain your current credit score, as the policy enables you to be up-to- date with your loan payments.
  • You won’t have to worry about paying extra in terms of penalty payments

If you have any queries, feel free to get in touch with our team at Canadian LIC, we will be more than glad to assist you.