While we plan something in our life, surprising activities might disrupt its stability. In such conditions, debt can become a burden, mainly if the loans are of huge amounts. This is in which Loan Protection Insurance steps in as a protection tool, providing whole peace of thoughts by safeguarding your budget to some point during such tough instances.
Today, in this article, we’ll apprehend how this facility works, its top benefits, and why you have to go with Stashfin for such a facility.
What is loan protection insurance? What are its top benefits?
As the term suggests, it is basically an insurance plan that covers loan repayments during emergencies. For example, if you die, become disabled, or lose your job involuntarily, it ensures that payments are made for a set time period.
This protects your credit score ultimately, eases the burden for your own family, and allows you to be cognizant of restoration. Even though it’s far obtrusive that there may be a value concerned, the peace of mind and monetary protection LPI gives may be invaluable.
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Peace of Mind
Knowing that your debt obligations will be met even if you encounter financial difficulties offers a sense of relief and peace of mind. This allows you to focus on recovery or job hunting without the added stress of worrying about loan repayment.
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Family Protection
In the unforeseen event of death or critical illness, loan protection ensures that your family is not left with the burden of your debts. This can be particularly important if you have dependents who rely on your monthly income.
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Credit Score Protection
If, by any chance, there is a default on loan repayment, it impacts the credit score of the borrower in a very negative way. This makes it hard for them to secure credit in the future. Therefore, this type of insurance ensures that the borrowers maintain a good credit history even during difficult times.
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Financial Security
One of the significant advantages of a loan protection plan is the financial security it provides. In tough times, when borrowers might be unable to meet their loan obligations due to health issues or job loss, insurance coverage prevents defaults and potential legal complications.
Why Stashfin?
As one of the leading personal loan and insurance platforms, we offer various types of insurance with a single tap on your smartphone.
- Visit our official website
- On the home page, tap on the insurance section in the header
- Go to loan protection
- Out of the four options, choose Loan protection
- Buy now!
The premium amount here is only Rs 999/-, which is to be paid for 12 months. It offers coverage of up to Rs 2,60,000/-.
What’s Covered
- 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
What’s Not Covered
- Charges which are not being reimbursed by Banks or Financial institutions
- Forgery: loss incurring directly or indirectly from an act of forgery
- Intoxication: loss incurred while under the influence
- Please refer product T&C for a complete list of exclusions
Final thoughts
Securing the best loan protection insurance is a proactive step towards financial stability and peace of mind. Keep in mind that the right insurance policy not only safeguards your financial health but also provides a safety net that allows you to navigate ups and downs with confidence.