Credit insurance originally developed in the United States [often called payment protection insurance] has witnessed an alarming increase in the world. This is due to the overwhelming credit culture in Western economies and the corresponding protection of lenders and consumers from unforeseen events such as death, disability and the ability of consumers to lose their loans.
The term is primarily associated with a specific loan or line of credit designed to reduce the risk of lending. In today's credit-happiness society, it is very relevant. In addition to the lender's view that loan funds protect their economic interests, borrowers also recommend that their families be safe and not trapped in debt.
Imagine that you are a permanent disabled person, have lost your job or a steady stream of income and/or have any extreme events in your life, what kind of suffering will you have in your home? Here is the essence of credit [guarantee] insurance.
While this type of insurance is common in today's world of credit happiness, you must ensure that you have an adequate credit plan that adequately protects you. In this case, not only your insurable interest, creditors or lenders have statutory insurance [as a borrower or debtor] in your life.
There are three types of credit insurance, depending on the type of credit.
** Reduce the coverage of closed-end installation payment systems. This usually occurs in the case of mortgages, cars, consumers, and education loans, and load balancing decreases with regular repayments.
** The general term of a single payment loan is underwritten, and the loan repayment method is a one-time payment [single premium credit insurance], and the unpaid amount will not be reduced.
** The open nature of different amounts of insurance coverage, where the credit line changes monthly due to credit card loans. Often, mortgage and loan-based credit insurance are more popular than different amounts of credit insurance [open]. Make sure at least your loan amount must be covered by the credit insurer because most of your loan may not be covered due to certain caps of the credit insurer.
The important report is -
1. Death: If the borrower dies, the amount of the claim will be paid to the creditor or lender.
2. Disability: Claims arising from disability are paid in accordance with the definition of insurance or contract, which is again subject to a specific waiting or cancellation period.
3. Unemployment: If the borrower loses his job, it may be due to dismissal, dismissal, strike, labor disputes. But most credit insurance plans do not include conditions such as retirement, resignation or illness.
Orignal From: Credit insurance solution
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