Loan due but future of job unclear: Can personal loan insurance plug any income gap or loss?

Loan due but future of job unclear: Can personal loan insurance plug any income gap or loss?

Dubai: If a pending loan has stopped you from changing jobs, or if uncertainty around the future of your current job has you worried about how you will pay back a loan that you took, there is a way to insure or financially guard yourself from any loss of income that you may or may not face in the future. “If you currently have an outstanding loan and you end up losing your job or an accident hampers your ability to earn an income then an insurance against personal loan can help you to meet your monthly debts up to a pre-specified amount,” said Mirin Raul, a Dubai-based debt advisor. “This is how you can prevent yourself from defaulting on your loan. It will take care of monthly EMIs [installments] on your behalf, in part or as whole [depending on the agreed upon terms]. However, this applies only for a period of 12 to 24 months, as these insurance policies only provide a short-term cover.” If one of the events outlined in your credit policy takes place, such as death, disability, or involuntary unemployment, for instance, then a credit insurance policy will typically kick-in and pay all or some portion