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.
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.
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.
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.
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**