(NC)—Having access to credit cards, loans, mortgages and lines of credit gives Canadians the financial flexibility to purchase big ticket items such as homes, cars and vacations.
Without a doubt, there are many things to consider before incurring debt. But when the standard due diligence is over and the financing is secured, there is one important question many credit seekers fail to ask: “What if I can't repay my loan?”
The answer may come in the form of credit protection insurance. Depending on the type of coverage in place, this will help manage a person's debt in the event of involuntary job loss, disability, critical illness or death.
“It's wise to consider the need for credit protection,” says Dave Minor, Vice President, TD Insurance. “Then you can rest assured your family will not have large financial obligations for your mortgages, loans, lines of credit or outstanding credit card balances in the event that something unexpected should happen.”
Credit seekers should consider the following when deciding if credit protection is right for them:
• Who will pay my credit or mortgage if I can't work?
• Are my co-borrowers and guarantors protected?
• Do I have insurance protection in place before the purchase of my new home closes?
• Is my line of credit fully extended? Will my family or I have difficulty making payments should an accident or illness happen?
• Do I have sufficient savings to manage emergencies?
For the best advice, be sure to speak with a financial advisor or insurance specialist about ways to protect your mortgage, line of credit or credit card balance. More information is available at www.tdinsurance.com or toll-free at 1-888-983-7070.
Source: www.newscanada.com
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