Loan insurance

What is loan insurance and why do I need it?

Loan insurance (or creditor insurance) can help cover your loan payments in the event of an illness, disability, involuntary job loss or death. Insurance premiums are spread out over your loan payments, making it an affordable and manageable option. Loan insurance provides peace of mind for you and your family. And, it offers security should you experience an unexpected event or reduction in your income.

Fairstone offers three types of creditor insurance for your loan:

What is disability insurance?

Creditor disability insurance can help cover your loan payments if you experience an illness or injury that prevents you from working, as long as the disability is covered by the insurance plan. Already have short-term or long-term disability coverage through work? Most policies will only payout a certain percentage of your wages. Plus, consider additional medical expenses you may be faced with if you become ill. Disability insurance on your loan is the best way to protect yourself from the financial hardship of an illness or injury.

What is job loss insurance?

Creditor job loss insurance can help cover your loan payments if you become involuntarily unemployed. Experience peace of mind knowing that your loan payments are covered and your credit is protected. Job loss insurance allows you to focus on finding a new job without the added stress of making loan payments.

What is life insurance?

Should you die before paying off your loan, creditor life insurance will pay or reduce the outstanding balance of your loan, so your family or estate doesn’t have to. It can help lessen the burden on your family during this difficult time, and protect their financial future.

Looking for claim forms?

Click here

Who benefits from loan insurance?

Everyone can benefit from loan protection insurance. Even if you’re healthy and have a stable job, you can’t always prepare for the unexpected.

Fairstone’s loan insurance can help:

  • Protect your home in the event that you cannot make mortgage payments*
  • Protect your credit score by helping you avoid late or missed payments
  • Allow you to pay your monthly bills during financial hardship – your loan payments do not have to be your priority
  • Provide security for your family and their financial future
  • Ensure you stay on track with retirement plans – you can make regular contributions knowing your loan payments are taken care of**

Does Fairstone offer insurance for loans?

Yes, we offer creditor disability insurance, job loss insurance and life insurance for your loan.

Is loan insurance optional?

Yes. Loan insurance is not required to take out a loan with Fairstone.

Do I need to fill out a health questionnaire to qualify for loan insurance?

We don’t require health questionnaires or medical exams for insurance on personal loans.

Mortgage loans require a short, simple eligibility questionnaire.

Can I cancel my loan insurance if I don’t need it anymore?

Yes. You can cancel insurance at any time during the life of your loan, but you will not be able to add insurance back to your loan at a later date.

I booked a loan without insurance. Can I add it to my loan?

We’re not able to add loan insurance to your loan after the application process. However, if you renew your loan term you will once again be given the option to choose insurance. Contact your branch for more details about renewing your loan.

Where can I find the Disability Claim Form?

Download the Disability Claim Form if you are submitting a claim for the first time, or if you have returned to work following a disability and are submitting another claim for a new period. Or, download the Continuing Disability Claim Form if you have an existing claim for a disability and payments have previously been made to your claim. If you have any questions please call 800-285-8623 or contact your local Fairstone branch.

Where can I find the Job Loss Claim Form?

Download the Job Loss Claim Form if you are submitting a claim for the first time, or if you have returned to work following a job loss and are submitting another claim for a new period. Or, download the Continuing Job Loss Claim Form if you have an existing claim for a job loss and payments have previously been made to your claim. If you have any questions please call 800-285-8623 or contact your local Fairstone branch.

Where can I find the Life Claim Form?

Download the Life Claim Form and follow the instructions on how to submit a claim. If you have any questions please call 800-285-8623 or contact your local Fairstone branch.

*Excludes unsecured personal loans. See branch for details.

**Coverage varies and is subject to the terms and conditions of the insurance policy and applicable law.