Loan Insurance Worth The Extra Cost

Loan Insurance Worth The Extra Cost



Loan Insurance – Worth the​ Extra Cost?
There are many factors,​ out of​ your control that can make you​ unable to​ repay your loans .​
You might become sick or​ get involved in​ an​ accident that takes you​ out of​ work for an​ extended period of​ time .​
Maybe your employer has to​ cut back and make wage decreases or​ lay-offs .​
If you​ are working for your self then maybe business is​ not going well and you​ are not earning as​ much as​ you​ had hoped .​
It could even be that your expenses have risen or​ interest rates have risen and this has made it​ difficult to​ make repayments.
Many of​ us worry about these possible outcomes .​
Some of​ us,​ especially if​ we have borrowed a​ lot and are already close to​ our repayment capacity may be losing sleep over it .​
People who are elderly and close to​ retirement,​ or​ those with young children also may worry a​ lot about such issues .​
Loan Insurance
It is​ for this reason that insurers offer loan insurance .​
Loan insurance is​ a​ policy that protects against the​ possibility that you​ will not be able to​ make your repayments .​
You will usually be offered it​ every time you​ take on​ credit .​
You should know that you​ are not obliged to​ take loan insurance and you​ cannot be denied credit for not taking it .​
If you​ do wish to​ take it​ out,​ you​ should shop around and not take it​ from the​ first insurer you​ come across .​
Rates vary widely and it​ certainly pays to​ shop around.
If you​ have loan insurance you​ can rest a​ little easier knowing that if​ certain events outside of​ your control occur you​ loans will be repaid by the​ insurance company .​
Events included would be illness,​ accident or​ job loss not of​ your fault,​ among others .​
You should also be aware of​ the​ conditions and exclusions however before you​ agree to​ such insurance .​
It is​ a​ fact that many people pay for loan insurance without much prospect of​ ever benefiting from it; often without even knowing they have it .​
This is​ because lenders are anxious to​ add it​ to​ your account as​ a​ way of​ increasing revenues.
Be Aware
Some policies will require for example that you​ accept the​ first job you​ are offered after losing your job .​
This can be very impractical for a​ person who may have had a​ very good job and now is​ offered a​ much lower paying one .​
They know that if​ they continue their search they will find a​ better job but their insurance wants them to​ take up the​ first one.
Always be aware of​ what you​ are paying for with insurance .​
Be aware of​ the​ exclusions and if​ you​ don’t want the​ insurance,​ don’t buy it .​
If it​ has been added to​ your account without your permission,​ call your creditor and have it​ cancelled immediately.




You Might Also Like:




No comments:

Powered by Blogger.