Insurance Coverage
Understanding how your loan is protected.
FAQ - How It Works: Insurance Coverage
Q: How does the insurance work for my loan?
A: When you take out an unsecured loan with insurance coverage through FirstCreditLoansUSA, the insurance is initially funded by us, the lender. This insurance acts as a safety net to protect your loan payments in case of missed payments or financial difficulty. Once the insurance payment is confirmed by the insurance company after your initial payment, the insurance will be fully activated for the entire duration of your loan.
Q: Who pays for the insurance?
A: The insurance is fully funded by us at the outset, so you don't have to pay for it out of pocket. Your repayments are supported by the insurance company if necessary, and it is only activated after the insurance company confirms your first payment. This means you can rest easy knowing your repayments are covered—without any additional cost to you.
Q: What happens if I miss a payment before the insurance is activated?
A: If you miss a payment before the insurance is officially activated (i.e., while we are waiting for confirmation of your first payment from the insurance company), the insurance company will still cover your missed payments, ensuring that your loan remains protected. However, the loan and insurance process is only fully operational after your first confirmed payment.
Q: Is the insurance coverage active throughout the loan term?
A: Yes, once the insurance is activated after your first confirmed payment, it covers the entire term of your loan. The insurance ensures that, in the event of missed payments or financial difficulty, the insurance company steps in to cover the repayments, protecting both you and the lender.