The ease of obtaining an online loan has meant that more and more people are choosing this type of financing. The speed of receiving cash, lack of formalities and a high level of discretion are undeniable advantages, but they can also lead to impulse borrowing. In addition, there is always a risk that there will be some obstacles during its repayment which will effectively prevent repayment. Therefore, prudent borrowers often decide to take out loan insurance. Is it really beneficial?
Unforeseen loans are caused by unforeseen circumstances and are usually not allowed to occur. It can be a loss of job or health, which not only will not allow you to pay back the loan, but will often require additional money.
Thanks to insurance, the borrower will not be exposed to the very severe consequences of non-repayment, which are also very expensive. Of course, insurance is also not free, which increases the overall loan fees, and the loan installments with them. By purchasing them, however, you can count on getting preferential loan conditions, a lower margin or interest rate.
Loan insurance is most often found in the bank, in the case of long-term loans, mortgages or car loans. This may come as a surprise, but some non-bank companies also offer them. Obviously, they will not apply to ordinary short-term payday loans but to installment payouts. The policy is then calculated in proportion to the length of the commitment, and then spread evenly over the number of installments. Logically, it will be the more expensive the longer the loan repayment time will be. On the other hand, very long-term loans will require such insurance. Installment loans, but repaid in no more than a few installments are not subject to such risk and in their case the loan insurance may be simply unprofitable, the more so that the costs associated with it will simply be too high compared to the loan amount. Therefore, if you want to insure “just in case”, it is better to do it for loans for high amounts, if of course this option will be available in your loan company.
Nomident is one of the few on the market that can offer loan insurance and more. It comes in two packages that you can choose separately or separately – in medical and protective.
The protection package is a standard life insurance policy, which does not release the borrower’s relatives from repayment in the event of the borrower’s death (see when it is necessary to settle the debts of a loved one in the article “Who has to pay back the loan in the event of the borrower’s death?”), But guarantees them a one-off payment benefits in the maximum amount of $ 4,000. In addition, the protection package also plays the role of accident insurance, which provides a maximum benefit of $ 36,000 for invalidity equal to or greater than 50%. The cost of this package is $ 3 per week or $ 13 per month.
The borrower who chooses medical insurance will pay the same cost. Through cooperation with Pexi, Nomident can offer access to medical services in the event of an emergency or accident.
Recently, we can enjoy the new loan brand BankBit. This product, created by the respected Aasa company, by its style is mainly aimed at women and aimed at preventing their financial exclusion. Men, however, are not separate from the possibility of using it, which can be very beneficial for them. Admittedly, this is a loan worth noting, mainly because it offers full insurance against the consequences of defaults on loans.
The policy is of course voluntary, but it is worth using it, because it is not a very expensive option. The basic package is 67 USD per day. With a maximum loan of 2 years, it will be just over $ 20 a month. As far as psychological comfort is concerned, it is not a big amount and it is certainly worth considering it deeper.
The responsible and prudent borrower (who is always insured) always reads not only the loan agreement, but also the annex regarding loan insurance. It may turn out that the policy contains a lot of exclusions, and its scope will be completely useless to the borrower and in the end he will have to repay the loan regardless of the situation in which he would not find himself. It is worth remembering that insurance should be useful to the borrower and not simply to be.