In India, do you agree with the fact that taking out a loan can be a significant financial decision as it helps in achieving desirable goals for individuals? However, if you are pretty aware of your finances, such facilities also come with the burden of repayment.
What happens if something or the other totally disrupts your ability to earn an income and meet your loan obligations? This is where loan protection insurance offers a safety net for you and your loved ones.
In this blog, we’ll discuss everything about it, from its purpose to its advantages and in which cases you can use this facility.
A loan protection plan is basically a policy that is particularly designed to safeguard your outstanding loan balance in case of unfortunate circumstances. These plans tend to offer protection against various situations, such as:
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Death
In case the borrower of this policy dies, it pays off the remaining loan amount to the lender. This ensures the family doesn’t inherit the financial burden, leading to unnecessary stress.
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Disability
If a critical illness renders you permanently disabled, in you’ll not even be able to work, the LPI fulfils your loan repayment obligations.
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Critical Illness
Some plans cover critical illnesses like heart disease or cancer. Therefore, upon diagnosis, the LPI pays a lump sum benefit that can be used to manage medical expenses or continue loan repayments.
Benefits of loan protection insurance
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Safeguarding family’s future
Life is unpredictable. If the borrower passes away unexpectedly, the outstanding loan amount becomes a heavy burden for loved ones. Therefore, LPI acts as a shield in such situations as it pays off the remaining balance.
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Peace of mind
Knowing that your loan is covered in case of unforeseen events allows you to breathe easier. You can focus on recovery or finding new employment during any kind of illness or loss of job.
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Improvement in Credit Score
While not the primary and top benefit, but still if you repay this loan timely, it helps maintain a positive credit history. This can be quite advantageous when seeking future loans or applying for credit cards, potentially leading to better interest rates and terms.
Why Stashfin?
At Stashfin, you get one of the best deals on a loan protection insurance plan. We offer a coverage of up to Rs 2,60,000/- and it includes the following:
- Complete protection of your outstanding Loan : Up to 1,00,000
- mWallet + UPI Fraud Protection: Up to Rs. 50,000
- Protection in case of offline, online, and digital fraud
- Emergency Cash Advance: Hotel bill settlement in India and abroad up to the limit specified (India and Broad)
- Emergency Services: Return transportation to the base location (India and Broad)
- Convenience: Hassle-free replacement of PAN
- 24X7 Assistance: Always there to help you
You can easily download our application from the Play Store (Android) or the App Store (iOS) to avail yourself of this facility of loan protection.
Final thoughts
All in all, this type of insurance isn’t only about safeguarding your loan but also offers tons of other benefits. It’s about protecting and safeguarding your dreams and your family’s future. Therefore, by offering a financial security net against unforeseen circumstances, LPI empowers you to take on financial goals with complete confidence.
So, what are you waiting for? Avail the best loan protection insurance at Stashfin!