Types of Credit Insurance Consumer Credit Insurancecould be broadly categorized as follows-(i) Mortgage Protection insurance (ii) Loanprotection insurance (iii) Creditcard insurance.In order to determine a fair amount of consumer creditinsurance for us, we would need to analyze our needsvery carefully.Mortgage Protection Insurance
Mortgage protection insurance is all about protectingyour mortgage interests in the event that you meet with a sudden accident. Yourmortgage insurancewould bear the mortgage reimbursements on your behalf whenever you undergo aconsiderable loss of work due to any accident or sickness. It would also takecare of your mortgage in case you die early.Your coverage needs would be ascertained upon the mortgage amount & therepayments. If you are eligible, you might enjoy a two fold benefit of coveringthe worth of mortgage in case you die as also ensuring the mortgage refundswhenever you undergo a loss of work.Now, there would be some other important areas that you need to evaluate..* Even though the mortgage protection coverage would take care of yourmortgage, it would be your responsibility to settle all the other associatedfinancial commitments under crisis. You may also want to analyze your life insurance needother than debt protection* The duration for which your disability or unemployment claim would befed* The waiting period before you would receive the benefits (if any)* The policy clauses & duration* The standard to be maintained* The payment proceduresLoan Protection InsuranceLoan Protection Insurance would come to real good usein case you meet with an uncanny accident.
Just as mortgage protection insurance would take care of your mortgage, it would takecare of your loan under circumstances when you suffer from a loss of work bybeing sick or getting injured. Likewise, your entire loan amount would berepaid in case you die early.A loan would often turn out to be a huge load upon your finances. It would behealthy practice for you to make regular payments towards your loan &ensure a smooth credit rating under circumstanceswhen you can't work due to any accident.Your coverage needs would be ascertained upon the loan amount & therepayments. If you are eligible, you might enjoy a two fold benefit of coveringthe worth of loan in case you die as also ensuring the loan refunds wheneveryou undergo a loss of work.Now, the important areas that you would need to evaluate in this case are asfollows,* The duration for which your disability or unemployment claim would befed* The waiting period before you would receive the benefits (if any)* The policy clauses & duration* The standard to be maintainedCredit Card InsuranceCredit Card Insurance whichis often branded as Credit Protection would ensuresafety towards your credit card balance in case youare crest-fallen at work. Under circumstances wherein you are injured or sick& fail to work for a considerable period of time
, this coverage wouldensure that your payments are made in a timely manner. If the outstandingbalance gets paid in time it would naturally help you to achieve a good credit rating. Some times they would just freeze alltransactions on your account to stop any further damages. You do need to optfor a coverage amount that is proportional to the outstanding amount on yourcard.Over here also you have some important areas to assess..* The duration for which your disability or unemployment claim would be fed* The waiting period before you would receive the benefits (if any)* The standard to be maintainedOnce you opt for any of the above forms of coverage you would be securing yourfamily interests for a better future & have your own peace of mind as well.It has really become easy to apply for such policies ever since all the majorbanking concerns & credit card companies havestarted offering one or more of these products.
