Home Loan Insurance & Why It’s Considered a Junk Insurance
Let’s say you are planning to purchase a house, yet you don’t have the money to pay for it. So you decide to take out a home loan, which means lenders will give you the funds you will use to buy your dream home, and you need to pay a particular amount every month plus interest until you can pay the total amount plus fees off. But the lenders offer you home loan insurance, which is a scheme where the insurer will settle the remaining Home Loan amount in case an emergency happens or any unforeseen situations.
What if you realized that you were sold a home loan insurance even if you were ineligible? Then you are entitled to a junk home insurance refund. But before that, let’s understand what home loan insurance is and how the lenders mis-sell it to the borrower? Read on to find out more about Home Loan Insurance here.
Understanding Home Loan Insurance
The financing company offers Home Loan Insurance together with the loan, and it’s often presented as a bundle. It’s becoming popular as house prices increase. And since everything is unpredictable, you don’t know if any unforeseen circumstances might happen to you. If ever something does and you cannot pay for the remaining balance of your home loan, the Home Loan Insurance will take care of the rest so the rest of your family won’t have to deal with losing their home.
Lenders don’t want their loans to turn into bad debts, which is why they almost always offer Home Loan Insurance to their borrowers. Of course, they want to protect their money, and a home loan insurance would cover the cost if ever the borrower dies and they are the only earner of the family. On the other hand, borrowers need home loan insurance if they lose their jobs due to instability or if they ever die. The insurance is responsible for paying for the rest of the debts with the bank or the lender.
How Can Home Loan Insurance be Mis-Sold?
If you think you were mis-sold Home Loan Insurance, you are eligible for a Home Loan Insurance refund. Some examples may be if the lenders didn’t correctly explain the insurance policies, which means the borrower doesn’t fully understand what they’re getting into. Another example is when the lenders sell it to ineligible borrowers, such as self-employed borrowers, or have an underlying medical condition. As a result, many of these plans don’t payout when needed.
Sometimes, lenders will purposefully mis-sell home loan insurance to borrowers because of the commission they will receive on their PPIs. So, for example, they have received over 50% of your PPI commission, and you weren’t notified, then you are entitled to a refund. Finally, the lenders will force the borrowers to get the insurance due to false beliefs like saying it’s mandatory or that the insurance increases the borrower’s chances of getting the loan.
If you think that you have experienced even one example from the above, you should think about getting a Home Loan Insurance refund right away. If you don’t need it, why should you be paying for it? Get My Refund is a company that will aid you through the process to get your funds back!
