Should we buy insurance for consumer loans? (P1)

Currently, while consumer loans from financial companies, the customer will be advised to purchase insurance loans. Insurance consumer loans, while not binding on private borrowing, but it plays a very important role.

Should we buy insurance for consumer loans? (P1)

Benefits from loan insurance

Insurance loan amount that customers pay to purchase insurance for their loan packages at financial companies. For the form of unsecured consumer loans (without collateral) nature of the risk is very high, the financial companies need a facility to secure these loans. That is why insurance advent loans.

In fact, insurance altogether beneficial loans to customers. When customers buy insurance, in case of unfortunate encounter unforeseen risks occur after the mortgage loan, the insurance company will repay debts customer. And this is also an important criterion for the financial companies easily approved loans customers a quick and convenient way.

In the loan portfolio insurance stating unfortunate circumstances can occur, such as mortality, disability, loss of working capacity and a number of other unforeseen circumstances. In fact, many families buy insurance through loan should the unfortunate happen to meet, debt several tens to hundreds of million was covered by insurance companies. Conversely, in some cases, when the customer is in this situation, these loans help alleviate their financial burden became pressures weighing on families.

For example, family circumstances Nguyen World War (Tu Son, Bac Ninh) has benefited greatly while loan insurance. He's a War as workers of private enterprises in the province. His wife was sick all year, so he is the main breadwinner in the family. When his son graduated from college graduation, need the means to go to work, he and his wife decided to Home Credit loan to buy a motorcycle for me, worth nearly 20 million cars. However, after each installment payment was 4, he had been a traffic accident and paralyzed, family inability to repay. Fortunately, when the loan documents, he Chien registered insurance for the entire loan amount in case of risk. And thus his family was the insurance company to repay debts for financial companies. His wife and children were not pressured War because the debt burden.