Articles on Credit Insurance: CLICK HERE
If you are applying for a loan then you may be required to get credit insurance
. You may not even know you have it because many companies will include it in your loan payment and you may never see the payments. Basically what it is used for is to protect the loan company in the event you are unable to make payments on the new loan.
Credit insurance can be beneficial I you were to lose your job and did not have the money to make payments. The bank or lender would be able to get these payments from the insurance company.
It may seem like there is an insurance for everything you can think of but remember that you and others need to be protected. One great way to do this is to have an insurance policy that gives you help in times of need. Nobody knows when they might not be able to make payment so this little added piece of protection can really come in handy. Think if you were injured one weekend and was unable to go to work for a few months. You may not have any income but your loan payments will still need to be paid.
Credit insurance is usually optional when it comes to lenders. But it is a good idea to have it so that you can shift the payments to the insurance company I you can not make them. You do not want to be without a policy and then get injured from an accident to realize that you have no money to make next months payment. It can really put you and your family in a tight financial bind. It is better to prepare for something happening this way worse case scenario the insurance company will have to make those payments, not you.
When getting a loan make sure you talk with the lender and ask if credit insurance is already being applied. If not then you might want to consider getting it so that you do not have to be concerned when and if you can not make that loan payment. Make sure that if the lender tells you it is required to buy the additional insurance that you report them. It is against the law that they require you to make this purchase. You should be able to get a loan without credit insurance.
Remember that even though it is not required it may be a good idea to get credit insurance. You want to protect you loan from defaulting if for some reason you are unable to pay. You may get laid off or injured and not being able to have income can make it hard to make loan payments. It is advisable to get the insurance coverage because in the bigger picture it does not cost that much money. You will be able to protect your home and or vehicle from default.
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