When taking out a loan, do you also consider who would repay the debts if something happened to you? Imagine losing your source of income or having a health emergency. While being stuck in an unexpected situation, paying off the loan would be the last thing you would want to think about. Fortunately, with the help of EMI protection insurance, your outstanding loan EMIs can be paid off regularly, so you can focus on other important things.
In this article, we’ll learn how a policy offers peace of mind by offering the right coverage at the right time and tips for choosing the best plan.
Understanding EMI Protection Insurance
An EMI protection plan is a policy designed to provide financial assistance to users by ensuring they pay their outstanding loan EMIs (Equated Monthly Payments) on time. This coverage works in cases like job loss, medical emergencies, sudden death, or any other situation where income is severely impacted temporarily or permanently.
Making timely payments ensures relief to your loved ones and gives them peace of mind. It also promises that your credit score will remain unaffected and that you will maintain financial stability.
Why Should You Invest in EMI Protect Add-On Cover?
Opting for EMI protection insurance can offer numerous benefits, including:
- Continuity of Loan Repayments: The plan makes sure your pending loan EMIs are being paid off continuously when you are unable to repay, preventing you from defaulting on your loan.
- Protects Credit Score: It is evident that when your debts are paid on time, it won’t impact your CIBIL score, which is essential to prove your creditworthiness in the future.
- Financially Protects Your Loved Ones: The policy is designed to relieve your family and loved ones from the financial burden of loan EMIs during tough times, especially when you are the sole earner of your family.
- Protection of Assets: It saves your valuable assets, which the lender keeps as security or collateral, and you can lose them if you are unable to make the repayments.
- Budget-Friendly: The EMI protector add-on cover is affordable and accessible to everyone.
Using EMI Calculator to Plan Your Loan Repayments
EMI calculator is an essential online tool that helps borrowers plan their monthly loan repayments before taking one. Users use this financial tool to get an accurate estimate of their loan cost and make an informed decision. These calculators are available online at any trusted financial services website.
With the help of an online calculator, borrowers can compare different interest rates charged by lenders on their preferred loan amount and choose the one that best suits their situation. This planning reduces the risk of falling into debt and seamlessly pays off the loan amount.
Choosing the Right EMI Protector Plan
Before making a decision, check out the following tips to help you choose the right plan:
- Look for a reputed lender that offers comprehensive coverage and enough time, sufficient to pay off your debts.
- Choose a plan whose premium is affordable and fits into your monthly budget.
- Be sure to read the terms and conditions, including the inclusions and exclusions.
- Choose a trusted insurer with good customer reviews and 24/7 assistance.
Conclusion
An EMI protector add-on cover is definitely a wise investment made by loan borrowers to protect their loved ones financially if something unexpected happens to them. Stashfin’s loan protector plan is the best solution for someone looking for a well-rounded policy. It’s a trustworthy financial services platform that covers up to ₹2,60,000 for 12 months at a premium of ₹999.
Remember to read all the terms and conditions and follow the above-mentioned tips to make the right decision.
