Whenever you borrow money or take out a loan you’re often then offered what is called ‘credit insurance’. This is a policy that is aimed at helping you pay off your debt if you are suddenly unable to work and generate an income to pay the money back.
This can be helpful, but recent industry reviews have found large failings within the system. It has become clear that many people are not being provided with the service they are paying for, reported the Sunshine Coast Daily.
Some policyholders have benefited from the insurance, but ASIC research suggests that these are only those who had properly checked the policies and understood the fine print.
Other policyholders have had claims rejected. The varied reasons provided for this denial of service included pre-existing medical conditions and even the age of the individual.
To protect yourself you will need to do more than simply sign up to the policy, you will need to be sure that you have read the fine print and understood what it says.
Source: http://www.sunshinecoastdaily.com.au/news/credit-insurance-check-what-youre-covered/1995504/
