If you have loan insurance

Loan Insurance - It is for this reason that insurers offer loan insurance. Loan insurance is a policy that protects against the possibility that you will not be able to make your repayments. You should know that you are not obliged to take loan insurance and you cannot be denied credit for not taking it. If you do wish to take it out, you should shop around and not take it from the first insurer you come across

This can be very impractical for a person who may have had a very good job and now is offered a much lower paying one. They know that if they continue their search they will find a better job but their insurance wants them to take up the first one.

Always be aware of what you are paying for with insurance. Be aware of the exclusions and if you don’t want the insurance, don’t buy it. If it has been added to your account without your permission, call your creditor and have it cancelled immediately.

If you have loan insurance you can rest a little easier knowing that if certain events outside of your control occur you loans will be repaid by the insurance company. Events included would be illness, accident or job loss not of your fault, among others. It is a fact that many people pay for loan insurance without much prospect of ever benefiting from it; often without even knowing they have it.

There are many factors, out of your control that can make you unable to repay your loans. You might become sick or get involved in an accident that takes you out of work for an extended period of time. Maybe your employer has to cut back and make wage decreases or lay-offs. Many of us worry about these possible outcomes. Some of us, especially if we have borrowed a lot and are already close to our repayment capacity may be losing sleep over it. People who are elderly and close to retirement, or those with young children also may worry a lot about such issues.