A ccumulation of debt can be very dangerous if there was no preparation for repayment. Not only when you are healthy and working, but in a situation of disability or death. These are two important times that death could become very embarrassing because you may not be there, but the crisis falls on your family or dependants.
What should you do why entering into debt contract? Get a credit life insurance. Credit Life Insurance provides this cover. It relates to life assurance taken on the life of a creditor solely to cover the outstanding balance of any money advanced to him or her by a lender or financial institution.
Credit Life insurance covers potential risk of non-recoverability on the part of a lender arising on the early death of the borrower and repossession of items. The borrower does not want to leave a financial burden to the family in the event of death.
Therefore, whatever you can do to free your family of a debt burden that may hit them when you may not be there to care for them is a challenge you must do to protect your family and loved ones and also give them that lasting joy. It could be very traumatising really, that someone is bereaved and afterwards he or she is confronted with the challenge of paying back the debt incurred by the deceased.
This is a concern for many people, which they do not know how to go about it. These debts come in different ways.
You may have taken a mortgage plan or acquired some assets, which you are repaying gradually on specified terms in line with the contract, but because nobody can predict tomorrow it is important you insure this deal such that should you not be there to complete the payment, your family will not be ejected or forced to do otherwise.
Insurance provides this reprieve, such that at any given time in the course of repayment of your credit purchase, you can have that rest of mind and enable you pursue your other goals
No matter how much therefore your family loved you, any embarrassment they receive from your debtors will not easily be forgotten when they remember you. Why don’t you take a step today to free yourself and free your family this burden that only insurance can carry?
Edwin Igbiti, managing director, AIICO Insurance plc, explaining the importance of credit life plan to policyholders, said the policy has been designed to protect the creditor and policyholder’s dependants in the event of death of the policyholder against the outstanding loan at the time of death.
Igbiti said this assurance cover is to secure all creditors against the risk of death or total disablement of the loan holder. “It is meant to protect policyholder’s dependants from the financial consequences of the inability to repay the loan outstanding as result of death of the breadwinner.”
He said you can take mortgage policy to enable you own a property, which in the event of death if the loan is not yet liquidated insurance pays up the balance. “Because the property is used as collateral, the dependants stand to be ejected after the person’s death if there is no mortgage protection insurance.”
Sometimes you take loan to buy car or any other type of property, this time, it is not mortgage but credit life Assurance so that in the event of death the property can remain with the family.
Modestus Anaesoronye
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