Loan Insurance

1. Loan Insurance

2. What is Loan Insurance ? • A loan insurance, like a life insurance policy that protects your life, protects the loan that you borrowed. Loan insurance protects your monthly loan payments in the event of the primary borrower’s death, temporary or permanent disability, or job loss. • The loan protection plan protects the borrower from loan default. As in these cases, the insurance provider company is obligated to pay the entire outstanding loan amount. • However, the coverage and conditions covered are determined by the insurance policy you select. • It is available for a variety of loans, including home loans, business loans, education loans, and even personal loans.

3. Types of Loan Insurance Loan insurance for personal loans typically has low premium rates because the loan amounts are also relatively low  A borrower can choose between - •  Reducing Cover Insurance - where the premium amount decreases with loan tenure (because the outstanding loan amount also reduces) • Level/Flat Cover Insurance - in which the premium amount remains constant regardless of the status of the outstanding loan amount.

4. Thank You