There are several factors which you can not control, that can
cause you to be unable to make payments on a loan that is your
responsibility.
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| Personal Loan Insurance |
You may get sick or be involved in an accident
that takes you out of work for an extended period of time. It could be
that your employer has had to cut down on the number of people he
employs or the wages have had to be lowered; or if you are
self-employed, there is a chance that your business has not earned you
enough to keep up your payments.
It could be that your expenses
have increased or interest rates have risen since you first received
your loan and this has made it difficult for you to make your payments.
Worry
about such things may be heavy on the mind of some people who are of
retirement age or well beyond retirement age and also for the people who
have small children.
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| insurance policy |
These are some of the reasons why loan
insurance, an insurance policy that protects against the possibility of
one's inability to make repayments, is offered. You will usually be
offered loan insurance every time you take on credit, however, it must
be understood that you are not obliged to take loan insurance and you
cannot be denied credit for not taking it. When you do decide to use the
loan insurance, it is wise to shop around for the best rates, as they
will vary from provider to provider, and you should not go with the
first insurer you contact.
If you do decide to use the personal
loan insurance, you can rest a little easier knowing that if certain
events not in your control occur, your loan payments will be paid on
your behalf.
You must be aware of the conditions and exclusions
included in the policy agreements before you agree to any type of
personal loan insurance. Too many people pay for loan insurance without
much prospect of ever benefiting from it and sometimes without even
knowing whether or not they have it. These are some of the reasons you
should thoroughly research all offers you receive for personal loan
insurance before agreeing to take it.
Some people actually agree
to loan insurance coverage without knowing they are receiving it,
because lenders are anxious to add it to your account as a way of
increasing their own revenues.
No matter how impractical it seems,
sometimes these personal insurance policies will state a requirement
that you take the first job you are offered after losing your present
one, with no regard to the level of pay being offered.
If you were
to be given time to search for a better paying job, it is entirely
possible that you would be able to find a new job that is a more
suitable match for your work experience and pay level.
It is
always best to have direct knowledge about the insurance you are paying
for, and if it is not something you want, do not buy it. If you discover
that insurance has been added to your account without your express
knowledge or permission, notify your lender and have it canceled with no
delay. No one wants to pay for something that they don't intend to use
and especially if they did not request it be intiiated in the first
place.
