If you have applied for a loan and are unaware of the repercussions of non payment of loan due to an economic down turn, loss of job, you are not in a position to work, crippled due to an accident or are chronically ill. Understand the after effects of non payment of loan, incase of a secured loan you may lose your collateral, face creditor’s harassment and further court proceedings.
When the economy is sluggish, there is a greater chance of you falling prey to the harassment of creditor. You cannot foresee your job’s stability hence you must make provisions for the regular payment of your mortgage installments. You are protected against any kind of risk related to non payment of mortgage which may arise due top loss of job, sickness, accident or any other situation where in you are out of work.
Gain peace of mind even in a crisis situation. You will not face any lose roof on your head when you are out of job. You must assess how does this help you and for whom it is applicable. It is applicable to those who are employed and does not apply to those who are self employed, unemployed or are retired. Is there any possibility of you remaining unemployed for long time? If yes, you can opt for it not other wise. Getting a protection plan with your mortgage lender is wise move if he offers your better premium on insurance. Carefully plan your mortgage payments so that you are not at any loss. This will also help you obtain cheap protection policy to safe guard your payments. By the word ‘cheap’ it does not mean you get poor quality protection insurance. It implies that your insurance policy will be offered to you at low rate.
Make sure that you don’t end up doing any of the below:
-Pay an expensive insurance when it is sold at a better rate else where.
-Getting an insurance when it is not required to you at all – no probability of you staying away from job for long.
-Opting for a policy when you are self employed, retired or unemployed, it will not help you.
It is only meant for employed people who apply for a mortgage or any other borrowing of funds from a lender or a bank. This will help you to fight your bad economic situation. Take out a policy carefully!