Common Personal Insurance Myths

Personal insurances are one of the most popular sources of quick money. One of the hassle-free way to meet your cash requirements almost instantly is to take advantage of unsecured insurances. Despite the high demand, there are many people who still shy away from some misconceptions they heard and didn’t bother to confirm. The goal is to stay up to date with the actual picture, so you can make the right decision and not get bogged down at the time of application.

Here are some myths about personal insurances that are not debunked:

Can I benefit from personal insurances if I already have a insurance or existing insurances?

The only thing that lending institutions look at is your ability to repay the insurance you are about to take out. However, if you have a lot of insurances or credit card bills, this does not mean that you cannot take advantage of a personal insurance. There is a facility called debt consolidation where you can combine your debts from different institutions into one personal insurance. This will definitely give you better control over your debt load because you will now be paying a single premium instead of a multiple.

Why are interest rates unreasonable?

It is a fact that the interest rates on insurances that do not require a guarantor are slightly higher compared to traditional insurances such as secured insurances. The reason is that these are unsecured insurances and do not require any collateral or guarantees, it is normal for banks to guarantee the repayment of their money. If you are keen on getting the best interest rate available, then you will come across many seasonal offers that are definitely worth paying attention to.

Can I apply more than I ask for?

Applying for any type of insurance that exceeds your ability to repay is generally not a good idea. You may come across many agencies that claim to give you the maximum insurance amount (which usually exceeds your ability to repay) to enjoy the so-called maximum interest. Don’t be fooled by this as the lending institutions never approve when your repayment limit is exceeded. Always remember, only borrow what you need so that a) you can save on unnecessary installments and b) you can easily take advantage of other insurances when needed at a later stage.

– Can I apply for a personal insurance in several institutions?

Although it does not go against the rules when applying in multiple institutions for a insurance, but if one bank is aware of your application across different institutions, it will only delay the process of getting the insurance immediately and increase your chances of rejection. . So it is safe not to apply at multiple institutions until you have the best chance of getting your insurance approved.

Is my credit rating the deciding factor in getting my insurance approved?

Your credit rating is one of the important factors for your insurance approval or rejection, however it is not the only factor that decides your application. Other factors such as income, company category and overall profile score play an equally important role.

There will be many other questions that come to your mind, which is why you need to communicate with the right people when it comes to your personal insurance application.