Loan insurance: What is it? How much does it cost? Pros and cons of insuring your loan

If there is one thing that the pandemic has taught us is that life is unpredictable. The situation is even more stressful if you have taken a big loan such as home loan or business loan. In such a scenario, how can you safeguard your interests so that the liability does not fall on your family if something unfortunate happens to you? The answer is loan insurance. This article throws light on what is loan insurance, key features of the same and compelling reasons why you should get it. Additionally, it also talks about term insurance and how it can be a viable option to cover your loans.

The ongoing pandemic not only exposed us to health risks but also raised concerns about our financial well-being. The global economy has been hit hard, and both resources and lives are under threat due to the spread of the coronavirus.  The situation is even more alarming for those of us who have taken big-ticket loans for buying a home or for our children’s higher education. The current scenario raises a lot of questions in the mind of the borrower as well as the lending institution regarding the repayment of loan in case of any eventuality.  A borrower is always under the obligation to repay the loan, while the lender has to ensure that the loan is recovered and it does not turn into a non-performing asset (NPA). This is the main reason why many lenders push borrowers to ...

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