Why should we insure new auto financing, personal loans, construction loans or any other consumer credit? These are credits that do not last long, unlike real estate loans! In fact, if the outstanding balance insurance is well known when investing in real estate, it is a new practice to insure one or more consumer loans at often lower amounts. Yet sheltering yourself and your loved ones in case of an accident of life should be a reflex as soon as it comes to your finances.
How does credit insurance work?
No one is immune to a career accident: temporary loss of employment, critical illness, disabling accident, … all these reasons will prevent you from paying the monthly payments of your personal credit. This insurance is specifically dedicated to the coverage of your new credit whatever it is.
A life insurance balance remaining due guarantees your lender that the sums he has advanced will be refunded. But this also protects you because according to the terms of your contract, if you are unable to meet your financial obligations for a few months or permanently, the insurance will pay your creditors. In case of death, your whole family is safe because it will not have to repay the remaining money to the financial institution.
The benefits of credit insurance online
It is not mandatory to buy life insurance balance due but it is strongly recommended! On the other hand, during a real estate loan, it is compulsory and can significantly increase the total cost of the loan. You should know that if you buy this insurance, the guarantee runs as soon as the first insurance premium is paid, there is no deadline to respect. And it will protect you during the entire credit. In addition, life insurance is tax deductible, so you will benefit from a tax reduction or deduction.
The general conditions of acceptance:
- Be in good health at the time of signing the contract.
- Do not be unable to work.
- Do not suffer from any long-term illness.
Inquire and compare, conditions can vary greatly from one company to another. We must compare the different loan offers, it helps to negotiate a cheap credit later.
Where to subscribe to a cheap loan insurance?
When signing a mortgage, the lender regularly imposes the purchase of the outstanding balance insurance from the same company or a preferred partner. You will benefit from a reduction in the interest rate of the loan, which is not negligible. Nevertheless, you can refuse and choose another company of your choice but you risk losing the proposed benefits or seeing your loan downright rejected. Nothing prevents you from accepting at first and canceling your insurance contract after one or a few years if you have found another company offering better coverage or a better quality / price ratio. For this, do not forget to compare the offers in this area through different online comparators. You can change company whatever the type of loan, it is enough to respect, at the expiry of your contract, the period of notice provided by the law. He is 3 months old.