In the case of loan protection insurance, there are some things you should understand before deciding whether it is right for you. You must understand both how and what this kind of coverage costs.
Like Works Loan Protection Insurance
Loan Protection Insurance is a type of insurance is optional. This will make a monthly payment from you, if they can not make your monthly payment for a loan due to a variety of circumstances. These contexts may be unemployment, illness or accident that causes a temporary disability. In most cases, you must be employed for at least six months at the time of insurance.
Loan protection insurance can be used on a car loan, personal loans, credit cards or other types of loans. There are many options, so shop around to find the best price. If you do not have loans for the purchase of insurance from the same place you got your loan. It can be purchased as a policy.
Times and waiting for Loan Protection Insurance
If you lose your job, becomes ill or is involved in an accident, the monthly payment will be made for you, for a certain time. Some measures will make your payments in 12 months, for a further 24 months. It is all predetermined before the policy.
For most insurers, it is a waiting period before payments begin. Some companies require 30 days of unemployment before it continues to pay. Other companies require you to wait 60-90 days after an accident or illness, before you pay. This is a part of all of the terms of policy and will cover the premium paid, depending on the scale you want.
The cost of loan insurance
The cost of this particular type of coverage will depend on many factors. Some of these factors are:
- Your age
- State you live in
- What type of policy you buy
- What type of coverage you want
- Your payment defaults
Any mention of loans Protection Insurance are usually required if you want an age-related policy or a stroke. Age policies in general have a lower monthly premium you are younger and higher premiums, the age you are. A rule is the same order, regardless of your age.
Most will charge a certain amount of cents for each $ 100 borrowed. For example, if the loan is $ 8000 and the insurance company charges 15 cents per $ 100, the monthly premium would be $ 12.00 per month. Other measures will take a certain percentage of their claims and determine the monthly premium in this way. The higher loan payment is the higher the premium.
Your credit history and credit score can also have an impact on the monthly premium. If you have had problems with loan payments in the past or have a low credit score, is the monthly premium may be higher.
Related articles:
