NEW DELHI, February 10, 2022 /PRNewswire/ — Leading instant personal loan app SimplyCash says it’s essential for loan takers to understand the importance of, and opt for, loan insurance coverage. According to SimplyCash, more than 20% of its customers choose life insurance as an attachment (also known as credit life insurance) to their personal loans, and that number is expected to grow as more people learn about the benefits. of this product. in addition to the Personal Loan.
During the pandemic, many families have been forced to bear the debt of their deceased family members. The same financial crisis occurs when accidents, disabling health conditions, mortality or unemployment affect the borrower. This shows how important borrower insurance is for loan takers. SimplyCash is on a mission to educate its customers about this.
Top Reasons Customers Should Choose Credit Life Insurance
Some of the main reasons why SimplyCash focuses on educating customers on the importance of borrower insurance are outlined below.
- Covers an unfortunate event
In recent years, almost everyone has faced financial difficulties. Many people have lost their jobs and many businesses have suffered heavy losses. The economic downturn had made it difficult for people to pay off their debt while leading them to poor creditworthiness. However, credit life insurance, by covering events such as partial or permanent disability, death and job loss, protects borrowers against debt.
- Eliminates family responsibility
Another major reason to opt for loan insurance is that it removes the responsibility of the family to repay the debt, if the borrower dies unexpectedly. SimplyCash’s credit life insurance protects the borrower’s family from financial liabilities even after the borrower’s death. The amount remaining after repayment of the debt is credited to the candidate’s account.
- Covers the co-applicant
Credit life insurance covers both primary and secondary borrowers. If co-applicants are unable to repay the balance owing, due to loss of employment, permanent disability or death, Loan Insurance will pay the outstanding balance.
- Saving credit score
Unemployment and permanent disability have a significant influence on the repayment potential of borrowers. Failure to repay the amount contracted in the form of a loan eventually leads to poor credit ratings, which has a negative influence on the borrower’s future borrowing capacity. As such, SimplyCash personal loan insurance, by covering the debt amount, ensures that the borrower’s credit score remains intact.
SimplyCash urges customers to look for 3 things in a credit life insurance plan
- Borrowers must ensure that the borrower’s insurance they take out covers all causes of death and not just accidental death.
- Borrowers should choose borrower insurance that covers the entire amount of the loan and not just part of it.
- Borrowers should opt for the loan insurance plan that not only meets their needs, but also fits their budget. Indeed, the insurance premium influences the EMI during the first months and, if not chosen carefully, can cause problems during reimbursement.
Powered by Hero FinCorp, SimplyCash is an instant personal loan app that provides cash loans up to ₹1,50,000 for salaried and self employed. Driven by technology and fueled by innovation, SimplyCash mobile app is available on Android play stores such as Google Play Store, Samsung Store, Xiaomi Store, etc. India. It is a registered trademark and loan product offered, managed and operated by Hero FinCorp.
About Hero FinCorp
Finances made simple. Three simple words that lead india Hero FinCorp Limited, champion of next-generation ultra-lean credit. It was incorporated into December 1991 as a hero Honda FinLease Limited. From March 2021Hero FinCorp, on a consolidated level, reached assets under management of ₹ 27,464 crore.