As some Canadians grow older, they embrace life insurance policies as it helps them and their loved ones prepare adequately for their old age and eventual passing. There are several types of life insurance, and people pick their preferred option based on their unique circumstances.
Almost throughout a person’s adult life, they would have been on one life insurance policy. They might not notice or pay much attention to it as someone else – usually an employer – pays the premiums. However, as people grow into retirement age, they will be responsible for their life insurance policy.
In most Canadian households, the parents pool their income together to cater to the entire family. Unfortunately, if one or both parents has an untimely death, their benefactors will be financially impacted. To create a safety net for their children, some parents get a permanent life insurance policy they will have to finance themselves even as they age.
Why Take A Payday Loan?
Sometimes, paying life insurance premiums can strain a senior citizen’s pocket. Remitting significant sums of money monthly to cover their insurance policy and other utility bills can leave little room for additional spending. Such a tight budget can be catastrophic if an emergency needs money for resolution. Fortunately, companies like My Canada Payday can solve that problem easily.
There are several loan companies that offer payday loans at attractive rates to people in Vancouver, and other provinces in Canada. Seniors applying for the loan can get their request approved in as little as 15 minutes. With a service like this, anyone that asks, “where can I borrow money immediately?” can quickly get funds in their bank account.
Access to payday loans makes it easy for Canadian residents to maintain their life insurance regardless of age, especially if they live in Vancouver. Desperate need for money can make some people default on their life insurance policy, but they can ease that desperation by taking out a loan.
Canadian seniors with life insurance that have an immediate need for cash should consider getting a payday loan. Here is why:
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The Process Is Convenient
Bank loans usually require the borrower to walk into a physical bank to make a formal loan request, but that is not what it takes to get a payday loan in Vancouver BC. Canadian seniors can take out payday loans right from their phones or computers. The entire process is done online and just requires your online banking history and evidence of consistent income.
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Loan Decisions Are Made Quickly
When seniors with life insurance apply for payday loans, they can get their request processed in as little as 15 minutes. The decisions for this type of loan usually do not factor in credit scores or the kind of life insurance policy the loan applicant is subscribed to.
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Clear Repayment Terms
Before taking out a payday loan, the borrower will be made aware of the repayment terms. This will enable them to properly calculate a convenient repayment plan that will not disrupt their life insurance policy.
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No Request For Loan Reason
When applying for bank loans, the bank will ask for the reason for the loan to determine whether to release the funds or not. However, with a payday loan, you do not need to reveal your reason for taking the loan. When you get the money, you can use it for whatever you like.
Possible Downsides To Taking A Payday Loan
While taking out a payday loan can help Canadian seniors, there can be downsides if it is misused. Not everyone is a credible borrower, and mismanaging funds from a loan can put them in a worse financial situation. Here are some significant disadvantages of payday loans:
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High-Interest Rates
In exchange for the convenience of taking a payday loan, their interest rate is higher than most other types of loans. If a senior with life insurance defaults on his loan repayment, the interest can compound out of control.
Faced with so much loan money to pay back, they might start defaulting on their insurance premiums. Therefore, it is best to budget appropriately before taking out a loan to avoid situations like this.
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Payday Loan Providers Can Be Predatory
There is a theory that some payday loan providers target low-income earners with bad credit scores. While many financial institutions or lenders give money to this demographic, some payday loan providers have a negative reputation because of the tactics they use to recover unpaid debts.
Hence, as a senior with life insurance, you should carefully research the company you want to approach for a loan.
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Access To Your Bank Account
Most payday loan providers will ask seniors for their bank account information while applying for a loan for the first time.
With the information, they can take their loan repayment directly from the seniors’ account when it is due. This can affect insurance policy repayments if the loan provider takes all the money in the senior’s account.
Endnote
Having life insurance is a wise decision, but there are times when it is challenging to keep up with insurance premiums, bills, and everyday expenses, especially as a senior. Payday loans give seniors the extra money they need to maintain a healthy financial life and retain their life insurance policy. The loan application process is easy, quick, and has little requirements.
