Can Personal Loan Insurance be refunded?
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alidia
Apprentice
Joined: 14 Jun 2007
Posts: 3
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 Posted: 10/24/09 - 10:34 Post subject: |
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I'm going to get a loan and I'm offered to sign up for a loan insurance. I didn't have to take last time I got a loan. Now I got it at a different bank and my question is what is it for? Is it just the way to get more money from customers? Can Personal Loan Insurance be refunded?
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giffie
Apprentice
Joined: 25 Apr 2006
Posts: 5
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| Posted: 11/23/09 - 02:28 Post subject: |
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| When you get a loan at some banks it's required to get a loan insurance too. It's meant to be a certain safety procedure. It secures the bank that you would pay your interest if something suddenly come up, like losing a job, health problems or death. Banks are getting a huge profit by Personal Loan Insurance, since they take a sum in the moment of borrowing. Many people are avoiding this kind of deal because they don't want to borrow less then they wanted. Lenders have a certain rule which is used when it comes to refunding the loan insurance. By that rule it would be refunded but it's made to fit the lender more than a consumer. Even if you paid your interest regularly you would find out that somehow you would get less money that you thought. When you look at the sum required for loan insurance you would see that it's an expensive cover for your loan. I would advise to find a better offer, without loan insurance if possible. If anything happens that you can't pay your interest there are other options you can consider. There are many lenders so it wouldn't be so difficult to find. My opinion is that Personal Loan Insurance is not worth it's purpose. |
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