This type of insurance is used to pay off your loan in the event of unforeseen circumstances. Most of these policies will cover your loan payments in the event of illness or accident. They will protect you even if you become paralyzed or die. Some insurances will also pay your loans if you lose your job because of a dismissal, for example.
Do you consider this insurance as necessary?
You think the best strategy is to err on the side of caution. This may seem like a good idea. But before taking insurance, you should first check if you have other fonts that already cover you for the same things. In addition, the loan amount and your current financial situation play an important role that will allow you to define the usefulness of a loan insurance policy.
Types of insurance
- Mortgage insurance is considered the most important coverage because it assures the buyer who has a low credit rating or low credit history. In the event that the borrower can not give a sufficiently large deposit, he will have to take a mortgage insurance if he wants to be approved for the loan. The monthly mortgage payment will then include insurance. In addition, people will benefit from this type of insurance if they lose their job or get sick.
- Credit card insurance will be used to pay monthly payments if you lose your job or get sick and do not work. Usually, she will cover the minimum payments on your balance while you can not work. If you die, the policy will pay the full balance of your debt.
- Disability and life insurance policies also protect you for these things. That’s why if you have one right now, you should look at it closely. For example, disability insurance often pays the minimum credit card payments if you do not work. In addition, your beneficiaries may be able to use life insurance to pay off your debts.
What if I want to borrow only a few hundred dollars?
Often you will only need to borrow a small amount of money to pay your next salary or to pay for expenses such as unexpected repairs or essential purchases. At this point, do not try to get a loan with insurance. Instead, opt for a personal loan online. These loans are offered for an amount of $ 300 to $ 750 and do not require a full credit check. The money is deposited into your account the same day. That’s why you will not be asking for insurance for this loan because you will repay it in the next two to three months.