When it is time to borrow money for some reason, most of us usually think of some friend or family member who we hope will be able to help us. Some people do shy away from borrowing from friends or family members for various reasons.
If you are thinking of getting a cash advance from a credit card, the extra fees added to the interest charges on the card?s balance will cost you a good deal. A lack of funds may be easier to alleviate by securing a personal loan.
Personal loans can be a very helpful option to use, but they must be repaid and this is not easy to do sometimes, and that is the reason for personal loan insurance.
Personal loans are used for the purpose of consolidation of debts, paying education costs, repair bills and also vacation costs.
You may know that personal loans, just like credit cards, can be secured or unsecured|Personal loans can be secured or unsecured, just as credit cards are|You can get a personal loan that is either secured or unsecured just as credit cards are|Just as your credit cards are when they are sent to you, personal loans are given on a secured or unsecured basis}}}. Secured loans are identified as such because you usually have to ensure the repayment of the loan by providing the lender with collateral. Personal loan insurance can be a lifesaver when you have a secured loan and you are unable to make payments, because this is when the insurance company steps in and makes payment for you.
The cost of personal loan insurance varies and is generally determined by the outstanding balance of your loan amount and type of insurance chosen, but the peace of mind you get from it may well be worth the cost.
There are three types of personal loan insurance coverage to choose from: they are personal loan death insurance, personal loan disability, and involuntary unemplyment insurance coverage.
A certain dollar amount will be paid by your personal loan death insurance policy in the event of the death of one of the individuals on the loan. In this event, the person picked to be on the policy will be paid in full up to the maximum dollar amount or assured amount.
Most of the time, the personal loan insurance that is purchased is the diability plus personal loan coverage. It will pay you the monthly personal loan repayments(EMI) up to a certain dollar amount, and you may also receive a percentage of your loan amount each month to help you with cost of living expenses.
Involuntary Unemployment Coverage insurance for personal loans will pay you up to a certain dollar amount per month in case your are being laid off.
It is good to know that personal loan insurance can help to pay regardless of unemployment, death or medical issues.
Personal loan insurance is inexpensive and it can be conveniently purchased from your local lender.