All You Need to Know About Personal Loan Accident Cover
Personal loans are the best way to get your financial issues resolved with ease. These loans are easily available to all and can be repaid quickly as well. As this loan is a liability and you would need to repay it on time without any misses, you would be stuck if there is an accident that would stop you from making such payments. In such a case, there is a cover for accidents against the personal loans. This can be applied while you apply for a personal loan. However, it is a personal choice and needs to be decided by the borrower.
What is a personal loan accident cover?
It is a way to cover the costs of the personal loan repayment in case of any accidents of the borrower. It would not stop the repayment process and the lender would be getting the money on timely basis. It is a great way to be stress free in such a critical time. All you need to do is make a payment of a small amount to cover you for such damages.
What are the inclusions?
There are many inclusions for such personal loan accident cover. It should be known by the borrower so that they can get a claim with ease on such difficult situations.
- Illness or accidental Injury
Such accident cover policy helps the person to claim in case of an accident, or any major illness which would make the person bed ridden or stop them from going to work. In such a case, the income is not affected as some part of it is credited to the borrower based on the kind of policy.
- Job Loss
If you lose your job due to some unforeseen event, it would help you cover for the loan installments. This would help you deal with the financial stress that would come up as a burden to you. You can also contact your financial lender and ask for a retention plan or some sort of an exemption to get out of this hard situation. This would not be helpful to you if you voluntarily quit your job.
If the borrower meets with an accident and dies due to it, the family of the deceased would get a claim or a compensation to take care of the outstanding personal loan. It is a good way to be prepared for the worse as there is no guarantee of life in this hectic world. You may be alive now but meet with an accident which would not leave you any room at all. In such a case your dependents would not get the pressure of finances even during such hard times.
What are the Exclusions?
There are many myths that are known to people and they are in that zone where they do not get anything when they wish to claim related to such myths. Therefore, it is always important to get complete clarity about all your policies and its inclusions and exclusions.
- If you have a contractual job or are a seasoned employee, it would not cover up for your financial losses due to accident.
- If you accept a voluntary retirement, it would not cover up on your financial losses.
- If the injury is due to self-issues and reasons, it would not cover up the claim and you would still be in a financial ditch.
- If you are related in any kind of a war or political issues, then such claims do not work as it should and you are barred from any financial support from the insurance company.
- If you are a woman and are pregnant and cannot go to work, it is not a medical illness or an injury which would be covered to pay off your financial loans.
It is important to go through all the terms and conditions of the contract before you sign on the dotted line. It would save you from any kind of a situation which you think would bail you out through such personal loan accident covers.
There is not much required for an eligibility check. All you need to show as a proof is your financial stability and fixed income statements to give you the personal loan for all your financial requirements.