Payment Protection Insurance For Your Loan

So, you have an outstanding loan. What’s the balance? $5,000? $15,000? $50,000? More? What would happen if you were unable to work due to illness or an accident? How would you pay your loan? For many of us, one of our biggest fears is not being able to pay the mortgage or meet other financial commitments should we find ourselves unable to work through illness or accident.

While there are a number of ways in which you can protect yourself, one of the more popular forms of cover is payment protection insurance.

Loan Payment Protection Insurance, also known as Loan Repayment Insurance is an insurance product that is designed to cover a debt that is currently outstanding in the event of temporary disability due to illness or accident. Though there are minor variations depending on the supplier of the insurance, it typically covers a person against an accident, sickness that prevents them from earning a salary by which they can service their debt.

Example – TEMPORARY DISABILITY
There is a one-month waiting period after disability occurs. To make a claim, the policy holder must have medical proof of his or her disability from a certified registered medical practitioner.

Temporary disability through illness or accident can be an extremely traumatizing experience. But with Payment Protection Insurance, there’s one less thing to worry about.

Consider this as well – credit refinance is the replacement of an existing debt obligation with a debt obligation under new/different terms. Along with loan protection, credit refinancing is always a useful option to consider.