Little Known Facts about Personal Loan Accident Cover
By Anupama Deshpande | Jan 4, 2019

Personal loan is one of the most popular and convenient ways to meet your immediate requirement of funds. Personal loan is very easy to get with a good credit score. Being an unsecured loan, comparatively higher rate of interest is charged on a personal loan.

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There are no restrictions as to how and where the funds taken as personal loan can be utilized in case of Personal Loan. You can avail it for variety of personal purposes such as for buying an asset, attending a wedding, purchasing an expensive gift for a family member, for medical treatment, travel purposes or to pay off your credit card bills and many more.

The amount offered under Personal loan is lower when compared to other types of loan such as home loan, business loan, etc. The amount of personal loan ranges from Rs. 20,000 to Rs. 20 Lakhs. It also depends on applicant's credit score.

There are some little known facts about personal loan accident cover which are detailed below:

PF statement is given annually by the employer to its employees once a year after the completion of each financial year which has the details of all the contributions made by the employee and the employer and interest thereon.

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Personal Loan Accident Cover is an insurance cover which helps you protect your monthly Personal Loan (EMI) payments, in case you become unemployed or suffer an accident or sickness after availing a personal loan.

It helps reducing the financial burden on you as well as on your family if you met with any unfortunate event.

It takes care of paying off your EMIs in case of death, disability, loss of job or sickness.

Whenever you opt for any kind of insurance, you need to pay insurance premium for the same. Likewise for Personal Loan Accident Cover, you have to pay premium which is calculated on following factors:

Age of the Applicant

Age of the applicant is considered while calculating the premium. Old age people will have to pay more as higher risk is associated with them. Young age persons will need to pay less amount of premium.

Medical History of the Applicant

Insurance company also considers medical history of the applicant while calculating the premium. If the health of the applicant is perfectly good, then it charges less amount of premium.

Personal Loan Amount

Premium also depends upon the Loan amount. Higher the amount, higher will be the cover so higher will be the premium charges for it.

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Tenure of Personal Loan

If the repayment period is longer, the premium charged will also be higher.

Type of Cover

Premium depends upon which kind of cover have you applied for i.e. whether it covers death cover, for job loss, illness, disability or unemployment, and any other thing. If you have selected any combination then each of such combinations will have different charge.