Docstoc

Loan Insurance Worth The Extra Cost (PDF)

Document Sample
Loan Insurance Worth The Extra Cost (PDF) Powered By Docstoc
					Title:
Loan Insurance – Worth The Extra Cost?


Word Count:
480


Summary:
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.



Keywords:
loan, insurance, policy, repayments, illness, accident, lenders, creditor



Article Body:
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.


<b>Loan Insurance</b>


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.
<b>Be Aware</b>


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.




Credit Dispute Letter

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:0
posted:1/7/2012
language:
pages:2
hashournonos hashournonos
About