Personal Loan Insurance
Personal loan protection insurance protects you against defaulting on your debt due to unforeseen events such as death, unemployment, or medical issues. Your dependants or family will not be responsible for paying back the personal loan. You have the option of paying the charge in addition to your personal loan EMI payments. You have the option of paying the premium all at once or in equal payments. Personal loan protection insurance protects you against defaulting on your debt due to unforeseen events such as death, unemployment, or medical issues. Your dependents and family will not be responsible for repaying the personal loan.
Few things need to consider
1) Make sure you can afford it: It will be an additional expense to pay your personal loan insurance premium. As a result, you must determine whether you are financially capable of paying the premiums. Make room in your monthly budget for the premium, which can be paid in instalments or in one large sum. Paying in instalments, on the other hand, attracts interest, making the procedure more expensive.
2) Examine the many personal loan insurance options: When a bank representative informs you about this alternative, personal loan insurance is frequently a last-minute purchase. However, because it was a last-minute buy and you weren't able to compare alternative offers, this could end up being a costly purchase. The premium rate offered varies from one company to the next. As a result, a comparison of different offers is required. Many loan insurance policies, for example, do not cover scenarios including job loss. If you fall within the designated category, you will not be able to take advantage of the offer.
3) Understand your personal loan insurance policy: Before purchasing personal loan insurance, it is a good idea to familiarize yourself with the terms of service. This can assist you in avoiding circumstances when you are unable to make a claim on your insurance. Indiabulls is one of the country's most popular home loan lenders. Indiabulls personal loan customer care number is 1800 200 7777.
4) Examine the pre-closure fees: When you foreclose on a loan before the agreed-upon term, you are likely to forfeit the insurance advantages that come with it. As a result, you should know if you will receive a refund or whether your premium will be cancelled. Getting personal loan insurance is usually a good idea, as long as you do your homework on the conditions of service.
Benefits
Some banks offer loan insurance with personal loans, however, it is up to the borrower to accept or decline the policy. Purchasing a debt protection insurance plan has various advantages, including: Loan insurance programmes minimise a borrower's outstanding loan and cover his or her monthly loan payments in the event of unforeseen occurrences such as job loss, accidental death, or temporary incapacity. Under Section 80C, several loan protection insurance programmes may give tax benefits. Money-back plans are available on some personal loan insurance policies, in which the customer receives a specific sum at the end of the policy. Personal loan EMI calculator is very helpful in this case, it shows us the EMI which we have to pay monthly out of our monthly income. It helps you to prepare a budget which helps in maintaining all the expenses along with EMIs.
Must read:- What Should A Borrower Do If They Can’t Repay A Personal Loan?
