Christian Loan Payment Protection
Obtaining Christian loan payment protection insurance ensures that borrowers can honor financial obligations in the event of chronic illness, job loss, or even death. When borrowers sign installment contracts, there is no guarantee that untimely events may prohibit repayment. Workers can become chronically or terminally ill, disabled through an accident or injury, or laid off due to plant closures and corporate restructuring. No one can be expected to continue making payments without employment; and the financial strain caused by a lack of work can severely impede a worker's ability to recover physically or emotionally. To ensure that monies are repaid in spite of a borrower's loss of employment, credit unions, banks and lending institutions offer a measure of certainty through additional insurance policies which safeguard their investment and the borrower's credit reputation.
Loan payment protection policies pay off outstanding balances for employed individuals who find themselves unable to continue working as a result of layoffs or disability. Spouses and families of a sole or primary breadwinner don't have to suffer financial hardship if the head of household dies or is permanently disabled. Payment protection insurance policies repay monthly notes for the duration of the installment agreement. Some policies offer coverage up to specific dollar amounts, as high as $30,000 to $60,000. Other insurance pays monthly installments directly to survivors, spouses or unemployed policy holders, which can amount to nearly 75 percent of the insured's monthly salary. Some policies provide weekly groceries to ill or disabled policy holders or survivor families. While most policies generally do not cover retirees, some provide coverage for older adults up to the age of 80 during hospitalization.
A good loan payment protection insurance policy provides an umbrella of safety during troublesome times when employees are out of work. Similarly, God provides a safe haven in times of adversity. "God is our refuge and strength, a very present help in trouble. Therefore will not we fear, though the earth be removed, and though the mountains be carried into the midst of the sea" (Psalms 46:1-2). Consumers who apply for loans may feel that purchasing repayment insurance is an insignificant and expensive venture. However, when illness, disability, or even death prevents employees from earning income to meet expenses, that extra bit of coverage could well be a lifeline for workers and or survivor families. Repayment insurance contracts help workers, spouses and families from relying on public assistance during periods of unemployment or losing valuable assets, such as a vehicle or equipment. Truckers, self-employed contractors, painters, and other workers whose employers do not offer sufficient compensation in the event of layoffs or plant closures can all benefit from insurance which, at minimum, guarantees that financial obligations will continue to be met until regular employment can be obtained.
The kinds of financing which can be insured through loan payment protection policies vary. Loans for home equity, automobiles, recreational vehicles, electronic equipment, heavy duty trucks, construction equipment, motor homes, and appliances may all apply. Most protection plans do not cover home mortgages. Mortgage banks, credit unions, and other lending institutions will generally offer a separate insurance policy for a new home buyer, which pays off the mortgage upon the death of one or both policy holders. Likewise, automobile dealers and finance companies also offer additional coverage for borrowers which automatically eliminate outstanding balances in the event of the borrower's death or disability. After a worker's death or disability, the more installment loan debt can be eliminated, the better individuals and family members are able to maintain a reasonable standard of living and cope with catastrophic health and employment issues.
Almost any individual over the age of 18 who is gainfully employed at least six consecutive months prior to signing a loan payment protection insurance policy is eligible for coverage. The best time to apply for policies is at the time applicants are approved for bank or credit union financing. Payment for the additional coverage may become part of the installment agreement, therefore lenders and borrowers are assured that the policy stays in force during the duration of the contract. Borrowers with pre-existing conditions at the time of application, especially life-threatening or chronic illnesses, such as AIDS, HIV, or cancer, are excluded from loan payment protection coverage. Pregnant workers are also excluded, as are employees who have been fired or voluntarily leave the job. An active insurance policy is terminated upon final repayment of an outstanding loan balance, or in the event that the policy holder defaults or retires from employment. Of course, insured individuals should check with policy issuers to determine the specific options of each clause.
In an uncertain economy, with unemployment reaching an all time high, the wisest move for any employed borrower is to safeguard one's credit reputation and ensure financial stability for loved ones by investing in a comprehensive loan payment protection policy. In the event of disability, loss of work, or chronic and debilitating illness, outstanding balances can be repaid in spite of a loss of income. Personal financial planners may recommend obtaining procuring loan payment protection for each major installment contract. Most policies are reasonably priced and can be incorporated into the monthly note. Individuals seeking information or rate quotes on payment protection insurance can browse online or consult a local financial planner or advisor. Consumers should remember to read the fine print and get a good understanding of the provisions offered through installment contract repayment insurance. In the final analysis, workers will find that having a policy in place just makes perfect common sense.
Christian Loan Protection InsurancePurchasing loan protection insurance can provide policy holders with a defense against life's unexpected challenges. Circumstances that impact personal finances can occur without warning. Unemployment or health problems can quickly leave an individual without income. With no money coming in, making good on monthly payments is impossible. Consumers who purchase these policies do not need to worry about such hardships. In the event of a job loss or impairment that keeps a worker off the job, loan protection insurance will continue to pay the policyholder's debt. These policies may come as an option on unsecured personal loans or on automobile loans and other lending options. In addition, these policies can also be purchased independent of any loan agreement. Individuals who are currently employed and at least eighteen years old can generally take out this insurance, which can pay benefits over the course of twelve to twenty four months or longer. When a policyholder is back on his feet and able to resume financial liabilities, the payments from the insurer will cease. In the event of a policyholder's death, the debt may be forgiven, leaving the grieving family unencumbered by this indebtedness. As always, a wise consumer will research these plans and make sure that they understand the fine print on any agreement.
Another form of loan protection insurance is a product called Guaranteed Asset Protection, or GAP. Often used in conjunction with automobile loans, these policies are designed to cover the "gap" between the current value of the vehicle and the loan balance. This gap exists because most standard vehicle policies will only cover the market value of the insured automobile. Once a car is driven off the dealer's lot, the market value of the vehicle will rapidly plummet. Unfortunately, the balance of any financing that was utilized to purchase the car will not plummet in the same fashion. If a borrower's car is stolen or destroyed through vandalism, natural disasters, or accident, the money that is owed on the vehicle could greatly exceed the value that is assigned by a standard insurance policy. Filling in that gap protects the insured's ability to make good on the vehicle financing. For example, if a vehicle is totaled one year into the loan that was used to purchase it, the policy may set a value of $12,000 on the automobile. However, the borrower may still owe $15,000 on the car. This leaves a gap of $3000. A gap policy would close that gap by paying the $3000. Needed loan protection insurance can make a big difference for borrowers who wish to make good on personal liabilities.
Disability and credit life policies can also provide a valuable safeguard for anyone who wishes to keep their credit ratings on track regardless of personal circumstances. This type of loan protection insurance will kick in if a policy holder becomes ill, has an accident that prevents them from working, or becomes permanently disabled. Should a family breadwinner pass away, many of these policies will cover the payments on debts or will pay off the debts entirely. Home mortgages can also benefit from this type of loan protection insurance. One of the benefits of these policies could be a guaranteed monthly income should an insured individual become permanently disabled. Even partial disabilities could be covered with some policies. Many policies will cover as much as seventy five percent of the insured individual's income. Self employed business owners can also benefit from business expense insurance. These products will help the entrepreneur meet the financial demands of a small business during difficult times. Life insurance policies can also help survivors pay off debts should a policy holder die. A credit policy will help a consumer in a number of ways. These policies will aide the insured individual by keeping track of credit ratings, alerting the policy holder in the event of a sudden change in a credit score, and informing the insured of the possibility of identity theft.
Unexpected illnesses can be difficult for any family to cope with. Added financial devastation can sometimes be too much to bear. Crisis recovery policies are a type of loan protection insurance that address these kinds of situations. A serious medical crisis such as a life threatening diagnosis can carry a double whammy for many families. In addition to concern over the ailing family member, the loss of that loved one's income can throw a household into bankruptcy. Insurance products that are geared toward these situations can prevent such financial devastation. When an insured individual receives a serious diagnosis, a lump sum will be paid to the family in accordance with the policy agreement. Coverage can be quite extensive, depending on the plans that are offered by the insurer. In some cases, policyholders will be given discounted rates in honor of healthy life habits such as not smoking or getting regular exercise.
Business expense policies are especially useful for Christian policyholders who are trying to operate a small business, or who are self employed. Should a self employed entrepreneur become disabled, these policies can provide a monthly income over a specified length of time. This kind of loan protection insurance will meet liabilities during the business owner's illness or impairment. Making financial choices can be difficult. According to the Bible, God offers believers both wise guidance and real joy. "Thou wilt shew me the path of life: in thy presence is fulness of joy; at thy right hand there are pleasures for evermore." (Psalm 16:11)