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4 Benefits of Credit Insurance for Borrowers

4 Benefits of Credit Insurance for Borrowers

Credit is a way to support the lives of most people today, such as home loans and loan funds. But have you imagined when applying for a loan or credit there is a risk of default that might occur.

What if in the midst of paying off your installment credit you experience unexpected things such as death or termination of employment so that nothing replaces the repayment of credit installments, which can happen at any time.

One way that our credit is protected due to financial risks that arise is by having credit insurance which functions to provide protection and guarantee the insured as the recipient of the creditor / debtor if he experiences the following conditions, namely;

  • Died in an accident
  • Pain (natural)
  • Disability due to accident
  • Get laid off

Or experience something else that is regulated in the insurance policy so that it cannot continue the obligation to pay off the loan to the Bank or creditor (creditor). So against these risks, the insurance company as the insurer is obliged to pay off the loan or liability of the insured. So from seeing conditions like this how big the benefits of insurance for the community.

Credit Insurance Benefits for Debtors (Loan Recipients)

1. Protection and Guarantee as a Default Borrower

The most felt benefit when having credit insurance, the debtor as a defaulted borrower will definitely get protection and guarantees from the insurance party as the insurer to pay off the remaining credit so that the debtor who applies for the loan feels calm. When the debtor fails to pay, there is no need to worry because someone already guarantees the credit that must be paid every month.

2. Repayment of the remaining credit without arrears.

If there are unexpected things experienced by the debtor such as death or layoffs, so that it cannot continue to pay credit installments, the insurance / debtor as the guarantor will pay off the remaining credit without any arrears for sure.

3. Debtors Can Have Alternative Funds

Another benefit for borrowers when joining credit insurance is that there are alternative funds owned by the debtor so that if unwanted things happen, these funds can be allocated to pay off the remaining credit.

4. Facilitate Loan Applications for Debtors.

If the borrower of funds has credit insurance, it will make it easier for the debtor to apply for funds because there is already a guarantee and protection for credit installments in the event of a condition that does not allow the debtor to continue the obligation to pay credit installments.

By having credit insurance, borrowers will feel more secure in applying for loans. So that the benefits of using insurance are more meaningful and if you want to plan ownership of a mortgage and dream vehicle through credit, you feel more calm and comfortable.

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