This insurance, usually offered by financial institutions, guarantees that your loan payments will continue to be made if you become disabled or otherwise unable to make payments. The loan protection insurance will continue to pay your loan until you are able to resume payment. In the case of death, some plans will automatically repay your loan, releasing your family from this financial responsibility. Like other types of insurance, there are certain guidelines that must be met for coverage to be offered. Fees and types of coverage vary among financial institutions, so compare rates and benefits when looking for loan protection insurance.
Cheaper ways to cover your loan: A few tips
. Image: Labourers work at the construction site of a commercial complex in Chennai. Photographs: Babu/Reuters Prev Next Of course, a group plan would cost lower. Compare this with a term assurance plan worth Rs 50 lakh from HDFC Life’s stable and it will cost Rs 21,950 yearly.
Creditor Insurance in Latin America
while both Cardif and Sura benefit from their partnerships with Colombia’s largest bankCreditor insurance linked to consumer financeLoan payment protection insurance is offered by almost all eligible lenders in ColombiaCardif holds at least eight separate distribution relationships…… in a sector in which at least a dozen insurance providers are activeCreditor insurance linked to credit cardsSchemes for credit card payment protection insurance are also widespread in Colombia with familiar underwriters leading the market on a weighted basisCreditor insurance risk coverageAvailability of cover for temporary incapacity is more widespread than that for unemploymentCreditor insurance market size, growth and forecastCreditor insurance related to consumer finance accounts for the lion’s share of the Colombian market… and this is expected to remain the case up to 2016 7.0 MEXICO Banks and other lending institutions coveredEconomic backgroundMexico is the second-largest economy in Latin America and has enjoyed reasonably strong economic performance in recent yearsThe service sector accounts for over 70% of GDPIn spite of economic progress, the country faces several major social problemsIn the World Bank’s Ease of Doing Business Index, Mexico is ranked 53th in the worldIntroduction to the banking sectorBanco Azteca leads the market in terms of its outright number of retail customers…… but not when measured by its share of banking assetsThe banking sector is dominated by several foreign-owned entitiesA number of banks targeting lower-income customers are affiliated to retailing groupsDue to the influence of INFONAVIT, banks account for a limited share of mortgage lendingIntroduction to bancassuranceMexican bancassurance is well-developed, especially for life insurance productsSubsidiaries of the country’s large financial groups are prominent in the bancassurance market particularly in the life insurance segmentConsumer lending market size and growthMortgage lendingMexico’s residential mortgage balances grew at a nominal annual rate of 8.0% between 2008 and 2012Non-mortgage lendingNon-mortgage balances were hit by the financial crisis in 2009 but have since recoveredCredit and other pay later cardsThe number of credit cards in circulation declined slightly between 2008 and 2012Creditor insurance provision rates, operating models and partnershipsCreditor insurance linked to mortgagesAlmost all mortgage lenders offer related creditor insuranceCaptive and joint venture underwriters dominate the market in terms of weighted partnership shares…Zurich and Santander entered into a 25-year strategic distribution arrangement in 2011Genworth Financial identifiable as the leading non-captive insurer by this measureMexico’s largest mortgage lender offers an automatic debt guarantee schemeMAPFRE has concluded a significant new distribution agreement with Genworth FinancialCreditor insurance linked to consumer financeLoan payment protection insurance is offered by most relevant lending organisations in Mexico and Seguros Azteca is ranked first by weighted share of partnershipsSix banking organisations have no apparent scheme for in place for this type of creditor insuranceCreditor insurance linked to credit cardsSchemes for credit card payment protection insurance