Do you need loan protection insurance?
Useful cover, frequently mis-sold as mandatory and funded by increasing the loan itself.
3 min read
What you need to know
Credit life cover clears the outstanding if the borrower dies, which genuinely protects a family carrying a large home loan. What is not acceptable is being told it is compulsory, or having a single premium silently added to the sanctioned amount so you pay interest on it for twenty years.
In most cases a plain term insurance policy of equivalent cover costs less and stays with you even after the loan closes.
Continue your research
Use this guide alongside our product details and eligibility criteria before choosing a lender.
Frequently asked questions
What is the main takeaway from “Do you need loan protection insurance?”?
Useful cover, frequently mis-sold as mandatory and funded by increasing the loan itself.
What should I check before acting on this loan basics guide?
Review the practical points in the guide against your income, obligations, documents and lender requirements.
Can the information in this guide guarantee loan approval?
No. It is general educational information. A bank or NBFC makes the final decision after checking your credit profile, repayment capacity, documents and the applicable product policy.
How can iFINTRUST help after I read this guide?
An iFINTRUST advisor can review your requirement, explain the documents normally requested and help you compare suitable lending options before you apply.