NEW DELHI, Feb. 10, 2022 /PRNewswire/ -- Leading instant personal loan app SimplyCash says it is vital for loan takers to understand the importance of a loan insurance cover and opt for it. 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 this number is expected to rise as more and more people get educated about the advantages of this product along with the Personal Loan.
During the pandemic, there were numerous families who were forced to carry the debt of their deceased family members. The same financial crisis occurs when accidents, debilitating health diseases, mortality or unemployment affects the borrower. This shows how much a Credit Life Insurance is important for loan takers. SimplyCash is on a mission to educate its customers about just that.
Top reasons why customers should opt for Credit Life Insurance
Some of the prominent reasons why SimplyCash is focussing on educating customers about the significance of Credit Life Insurance are outlined below.
* Covers Unfortunate Event
In recent years, almost everyone has faced financial difficulties. Many people have lost their jobs, and many businesses have incurred severe losses. The economic downturn had made it tough for the people to repay 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 from indebtedness.
* Eliminates Family's Liability
Another major reason for opting a loan insurance is that it removes the family's liability to pay off the debt, if the borrower unexpectedly dies. SimplyCash's Credit Life Insurance protects the borrower's family from financial responsibilities even after the borrower has deceased. The amount left after debt repayment is credited to the nominee's account.
* Covers Co-Applicant
Credit Life Insurance covers both primary as well as secondary borrowers. If co-applicants are unable to repay the balance dues, owing to job loss, permanent disability, or death, the loan insurance will be responsible for paying the outstanding balance.
* Safeguards Credit Score
Unemployment and permanent disability have a significant influence on the borrowers' repayment potential. Failure to repay the amount taken as a loan eventually results in poor credit scores, which has an adverse influence on the borrower's future borrowing capacity. As such, SimplyCash personal loan insurance, by covering the debt amount, ensures that the borrower credit score remains intact.
SimplyCash urges customers to look for 3 things in a Credit Life Insurance plan
* Borrowers should make certain that the Credit Life Insurance they acquire covers all causes of death and not only accidental death.
* Borrowers should choose a Credit Life Insurance that covers the entire loan amount and not just the portion of it.
* Borrowers should go with the loan insurance scheme that not just meets their needs but is also within their budget. This is because the insurance premium influences the EMI in the first few months and, if not chosen carefully, can cause trouble during repayment.
About SimplyCash
Powered by Hero FinCorp, SimplyCash is an instant personal loan app that provides cash loans of up to ₹1,50,000 for both salaried and self-employed individuals. Driven by technology and fuelled by innovation, SimplyCash mobile app is available on Android play stores such as Google Play Store, Samsung store, Xiaomi store, etc. With a widespread presence, SimplyCash currently offers its services in over 90 major locations in India. It is a duly registered trademark and is a loan product offered, managed and operated by Hero FinCorp.
About Hero FinCorp
Finance Made Easy. Three simple words that drive India's next-generation ultra-lean credit champion-Hero FinCorp Limited. It was incorporated in December 1991 as Hero Honda FinLease Limited. As of March 2021, Hero FinCorp, at a consolidated level, has reached assets under the management of ₹ 27,464 crores.
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