14:57 25 June 2014
Credit insurance is a cover that protects your loan in any case you are not in a position to repay it. This is an optional cover that allows you not to have to buy it from your lender.
Types of credit Insurance policies:
A credit insurance cover repays off all or a part of your loan in case of death, accidents, unemployment or any other factor that may make you unable to repay the loan. 4 key credit insurances that are available today and they include:
There are several things that you need to always consider before you opt to apply for this type of insurance. One, you need to scrutinize your priorities first. You have to consider whether you really need to take a cover for the loan depending on your financial status since this type of insurance can be very expensive. Similarly, you have to consider the rates that you are going to be charged on the loan. How much are the set premiums? Can you be in a position to pay per month other than being financed the whole sum amount as token of the loan? Can you opt to cancel the insurance? And if you can, will you get a refund and how much will be available in the refund?