Go For Loan Repayment Protection Plans With CautionToday some form of insurance plays a vital role in our life. The insurance industry tries to cover almost every aspect of our lives. One such plan is called Loan repayment protection. This scheme is provided by banks and finance companies who hold your loan agreement. Their policy is to ensure that your monthly repayments are made even if you are unable to repay the debt to the bank or financial institution due to inevitable circumstances. We take loans for different purposes and repay them back at monthly installments. Now if due to illness or any kind of mishap we are unable to make loan repayments the insurances done against such loans ensure that the installments are paid monthly till you are fit to work and repay back the remaining amount. The plan sounds good, but it's not as simple as it may seem. You have to pay premiums for the insurance bought against your loans which are sometimes very high. The insurances for loan are provided by companies and banks themselves which offer the loan. Sometimes, the banks have tie-ups with companies for such insurance plans that they sell as optional benefit to a consumer who has taken a loan of a certain amount from the bank. Such insurance policies are increasing day-by-day with many banks having loan insurance forgiveness plans of their own or others. One such company is EGG. Their EGG loan repayment protection policy covers some situations like accident, illness, job loss and other kinds of misfortune. If you fall ill or meet an accident, the company will pay the repayments till you return to your work. If you lose your job, the company assures the payment for 12 months. And, if you were to die, the company would pay the amount to a maximum limit of £35,000. Sainsbury's Bank is a popular bank to offer such insurance plans to its consumers. Its policy is that if you buy the insurance package against your loan, a small additional payment has to be made with your monthly installments of repayment. This is the premium of the program. The cost depends on the type of plan you choose, your amount and term of repayment of your loan. If you want to claim, you can call their claims online or give an application for the claim. You will get a confirmation once the claim is approved or covered. Such plans offer some relaxation that at least if anything happens, your loan repayment doesn't stop. But, there are many loopholes in some plans which don't cover certain diseases or some kinds or pre-existing illnesses. So, reliable sources offer advice that you read the policy booklet very carefully before you opt for such insurance plans. Personal loan repayment protection may be one choice if the premiums don't impact your monthly income in any significant way. However, you should seriously consider protecting yourself with other forms of insurance such as disability benefits. |