Tag Archives: insurance

How important is payment protection for a secured loan?

Your home is one of your dearest and most treasured possessions. So, taking loans against your home is definitely to some extent putting your home at risk. But, at times, when you need money to fund major concerns, you may require hefty amounts at low rates of interest. In such cases, only a secured loan can get you what you need and that too with flexibility in repayment terms.

So, how do you ensure that any future event won’t risk your house? You may decide to be regular with your monthly loan instalments, but can you guarantee what happens in the future? Definitely not! Future is unpredictable and so; one should not take any chances, especially when it comes to your home. So, why not take a payment protection scheme on your secured loan and protect your collateral.

All secured loan lenders provide the PPI that stands for Payment Protection Insurance. To define, PPI is the credit insurance that provides life insurance that pays a lump sum towards a loan upon the death, sickness, job loss, that makes the borrower incapable of paying the loan further. Thus, PPI helps the borrower in the following ways:

  • Prevents defaults, arrears and missed payments
  • Prevents bad credit score
  • Prevents repossession of the home by the lender
  • Prevents CCJs, IVAs and Bankruptcy
  • Helps save you extra for the future

    A secured loan is pledged against the borrower’s home and so, he should always opt for a PPI scheme. So that in case his is unable to keep up with the payments in future, the insurer will pay the outstanding debt to the creditor. The instalments you pay regularly to the insurer will be returned to you after the maturity of the loan. In case you decide to take the insurance cover from the same lender from whom you are availing your secured loan, there is a possibility that you may be able to get a refund back of your PPI at the end of the loan tenure in case its not been used.
  • Guardian Protects Business Loans if Disability Strikes: Offered in New York Market by National Financial Network, LLC

    Garden City, NY (PRWEB) March 22, 2007 — Business owners who have borrowed money in order to expand their businesses will benefit from a decision by The Guardian Life Insurance Company of America (Guardian) to increase the amount of loan obligations covered in the event of a disability.
    Guardian’s Business Reducing Term policy will insure up to 100% of monthly loan payments — principal and interest, provided the obligation rests with a single principle — should a business owner become totally disabled. This represents an increase over the policy’s prior level.
    In New York, Business Reducing Term is available through the National Financial Network, LLC, a Guardian General Agency.
    According to Charles Dunbar, a National Financial Network agent, Business Reducing Term addresses a critical gap in the contingency plans of many business owners.
    “As long as they can run their businesses, any loans they take out will be repaid from the earnings of the business. If they die, life insurance can pay. But if they become disabled due to sickness or injury and can’t work, their business assets could be lost due to loan forfeiture,” observed Charles Dunbar.
    Guardian is currently the only disability income insurer offering a product specifically designed to fund financial obligations that require periodic payments expiring at a given time. In addition to loan payments, other applicable client scenarios include business owners who offer guaranteed employment contracts to their employees and those who’ve purchased a business or professional practice with any amount payable to the seller over a specified period.
    “National Financial Network, LLC is in a unique position to offer our business-owner clients a product with which no other company can compete,” said Charles Dunbar. “By increasing its business obligation coverage levels, Guardian is signaling it long-term commitment to a key sector of the U.S.economy.
    About GuardianFounded in 1860, The Guardian Life Insurance Company of America, New York, N.Y., is the fourth largest mutual life insurance company in the United States. As of December 31, 2003, Guardian and its subsidiaries had $37.2 billion in assets. With more than 5,000 employees, approximately 3,000 financial representatives and nearly 100 agencies nationwide, Guardian and its subsidiaries protect individuals, businesses and their employees with life, disability, health and dental insurance products, and offer 401(k) financial products and trust services.
    As long as they can run their businesses, any loans they take out will be repaid from the earnings of the business. If they die, life insurance can pay. But if they become disabled due to sickness or injury and can’t work, their business assets could be lost due to loan forfeiture Contact: Charles DunbarNational Financial Network, LLC990 Stewart Avenue, Suite 200Garden City, NY 11530Tel: 516-240-1919