Car Loan Insurance

Takaful BIBD is offering a product called the Car Financing Protector, which will assist those who pass away or become permanently disabled and have a car loan. It works much like mortgage insurance, only it is on your car loan instead, and it is the first one of its kind to be offered in Brunei Darussalam.

The insurance would pay off the life of the auto loan if something should happen to the holder of the policy. If the person has defaulted on the car loan for the above reasons, they would step in and pay off the remainder of the auto loan.
It doesn’t matter how much time you have left on the auto loan, you could be in your first year of the loan or the last, and they will still pay it off. It is up to the consumer if they want to pay for it a year at a time or in one lump sum. If they pay lump sum they will be covered for the entire life of the auto loan. If they choose to pay for it a year at a time, they will only be covered for the remainder of that year.
Some people think that it will cost too much, but the company says that when you consider the fact that the car loan debt will be completely paid off, and that your next of kin won’t have to take on the debt, it is more than worth it.

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