There is a different opinion about loan insurance, someone is good, somebody says a sweep, but in our country hundreds of thousands of customers have a so-called home loan insurance.
credit insurance. The insurance specialist warns us to read through the contract and choose a package that is reasonable in the terms and conditions, and that your details are correct, so that if you are harmed there will be no unexpected surprise.
We consulted the insurance specialist
Interviewed about how it is possible for the insurer to pay the loan installment for that period instead of the customer in distress.
Loan coverage insurance is a financial help from the insurer that comes into effect if the borrower is in financial trouble and is unable to pay the mortgage repayment installment on time, and the coverage could be jeopardized. Therefore, they charge a special fee, which is linked to the repayment of the loan. They are payable together and you can apply for this insurance at the credit institution at the time of the loan.
Operation is as follows!
- in the event of a major health impairment (disability) or death, the insurer pays the full amount of the debt, while
- if the problem is less, the insurer will compensate you for a predetermined amount even during longer periods of sick pay and unemployment.
We found out that there were no scandals about this service in our country, according to a 2011 document, which caused a huge storm in England because of the enormous amount of commissions after the product was violently distributed and the minimal payments after the damage occurred.
If, after careful reading, we understand the essence of this product, we can be assured of any form of job loss!
The lowest average loan amount per bank we expect: $ 4,000,000
Average term: 14 years
We need to investigate!
- Does unemployment insurance cover you and, if so, which types?
- If you are also suffering from disability, what is the degree of help that comes into play?
- Everyone can decide if it is worth taking out this insurance option. in our opinion, no matter how long it takes to help, it will definitely come in handy for a family with a loan.
So let’s take a look at the loan coverage insurance!
- It is a tragedy that results in an accidental death, disability or incapacity.
- Only the degrees of invalidity are Health Damage, the Government Office issues a certificate of its degree.
- Outstanding debt: what remains to be repaid.
- The number of days and months for which we have no salary instead of sick pay is incapable of earning.
- If there is an existing illness and the damage is due to this, the insurers will not contract because it is an existing illness.
- Deductible: The time elapsed with this form of insurance, when the problem occurs, and until the insurer starts to cover the risk, is usually called 2 months.
- Repayment insurance: loan coverage insurance.
- Waiting Time: The time it takes for the insurer to pay, starting from the date of conclusion. During this time, the insurer will not settle any damage due to mandatory regulations. It’s like the deductible at Casco.
Our respondents indicated what lenders should look for in home mortgage insurance.