Credit shield is also called as Credit Protection, Creditor’s Insurance and Credit Insurance. Credit shield meaning a type of financial protection. It ensures that in the event you are unable to repay borrowed money, the credit shield insurance firm repays the money back to the lender. Most credit card loaners and bank loans nowadays require the borrower to take credit insurance. It is especially helpful if the borrower has had an untimely death or is incapacitated. It prevents undue stress on the borrower’s dependents in such situations.
What are the credit shield insurance solutions available?
There are many credit shield insurance solutions available for various situations that include total or partial inability to pay back the loan or borrowed money from the bank or financial institution. Apart from protecting yourself against the risk of death and subsequent inability to repay the loan, you can also take credit shield insurance to protect against loss of earnings.
Credit shield insurance solutions vary depending on:
● The number of persons insured in the credit protection plan — A credit shield protection can be taken by one or multiple people. For example, you can take credit shield insurance along with your wife.
● The credit amount insured and the portion that this amount represents in the overall loan — You may or may not cover the entire loan under the credit insurance policy. You and your partner can determine various levels of coverage, depending on your age and income.
● Period and frequency of repayment — You can opt for premium payment frequency as quarterly, monthly, or yearly.
How much does credit shield insurance cost?
The cost of credit protection insurance depends on the following factors:
● Amount of loan that the credit insurance protects. The interest rate of the loan.
● The number of persons insured and their percentages of coverage.
● Your age, financial status, employment, lifestyle habits, etc.
Types of credit shield
Credit shield has many forms. Although credit protection is primarily insuring yourself against any potential inability to repay a loan, credit shield meaning in the broader sense is many types of services:
● Credit monitoring — This type of credit protection guards you against thieves and hackers by sending you alerts whenever inquiries are made about your credit or bank account details by someone unknown to you.
● Identify theft protection — There have been cases where fraudsters have borrowed money in the name of someone and even filed tax returns in that person’s name. This type of identity theft is rampant. Credit shield insurance protection services offer to protect you against such breaches.
● Purchase protection — Some credit providers offer this type of protection for purchases of items or products made through their cards.
How do credit shield services protect a person’s identity?
Identity theft protection thwarts cybercriminals from misusing anyone’s personal details, including bank account, password, credit card number, digital wallet ID, etc. These services monitor your credit report and alert you when your personal information is being used somewhere, such as being altered or used for tax filings. Therefore credit shield has multiple dimensions to it.
You can now download Lazypay App from Google Play Store and Apple Store.
