11 Jun Do You Need Personal Loan Insurance Cover?
Have you heard about personal loan insurance coverage? Chances are, you have a general understanding of it– that it protects you if you can’t pay back your loan by paying instalments for you. It turns out that there are nuances to credit insurance coverage, like eligibility requirements, coverage amounts, and ways it can protect you.
Debt Refinance offers credit unemployment insurance. That means that in the event of a retrenchment or if you get fired, we’ll cover your loan instalments for a period. Read on to discover what this entails and the caveats of credit insurance.
Who Needs Personal Loan Insurance Coverage?
In these times of economic uncertainty, one can never be too careful, especially when it comes to credit. Everyone could be fired or retrenched. If you run your own business, it’s possible that you could go bankrupt. These things could lead to you being unable to afford your loan repayments, which if left unaddressed, could go to collections agencies or become public record.
In the end, if you’re taking out a loan, especially a larger one, it’s important to cover your back. It’s always good to think about those just-in-case situations because your life could be turned on its head any second.
With personal loan insurance, you won’t have to worry about late payments impacting your credit or having to pick between the bills you need to pay.
Alternatives to Loan Insurance
Of course, you don’t have to get insurance if you don’t want to. There are alternatives you could explore.
Emergency Fund
An emergency fund is typically a savings account used to finance unexpected expenses. Experts recommend that you save three to six months of monthly expenses up, so you can cover your bills if you lose your job or fix your car if it breaks down.
Life Insurance
Some life insurance can be used as a sort of savings account. You can save up your premiums and withdraw an amount to cover your expenses. You may incur a penalty fee for this.
UIF
You could also rely on the Unemployment Insurance Fund, a government-organised fund you can access in the event of job loss. Note that it only provides short-term relief.
In summary, we believe that everyone should have personal loan coverage because everyone can lose their job or go bankrupt. If you’re thinking of taking out a consolidation loan with us, we recommend you use our safety net, personal loan insurance, in the event of unexpected unemployment. Get in touch with us today to discuss your options.