Bank customers often wonder if cash loan insurance is profitable. However, they rarely really know what such insurance guarantees and how much it costs them. Banks very often either have compulsory insurance on their cash offer or voluntary insurance, but in the latter case, often using insurance results, for example, in lowering the margin or commission. Here you will find a cheap cash loan ranking www.ekredytowymarket.pl check before you choose a loan for yourself.
Banks encourage their clients to take out credit insurance suggesting that in case of illness or financial difficulties, the insurer will help repay the loan. Is it really true though?
What is cash loan insurance?
Credit insurance is to be the bank’s collateral in the event that the borrower is unable to repay the liability. These are situations that are independent of the borrower, such as serious illness, death or job loss. This is our insurance, but it will mainly protect the bank’s interests.
However, we should remember that the insurer will not allow himself an unjustified claim, and this will be when our illness does not cause full disability. Insurance is a good insurance in case of death. It is not about the fact that if we die, we should take care of posthumous repayment of the loan. The point is that our debts are inherited by our heirs, so such insurance will protect our loved ones from the unpleasant situation in which they will have to pay our debts. When deciding to buy insurance only because the bank offers us a lower margin or commission in return, you need to think about whether the insurance costs will be greater than the profits generated in this way.
General insurance Conditions
Before signing the loan insurance agreement, let’s get acquainted with the General Insurance Terms and Conditions, because they are an integral part of the agreement or policy. The general terms and conditions of insurance contain all information regarding each situation that will be subject to the insurance claim. Insurance against loss of life usually excludes the situation of suicidal death, but also as a result of driving a car under the influence of alcohol or intoxicants or without a valid technical inspection or even without a permit. It also excludes the situation of loss of life as a result of not following the recommended treatment, i.e. by euthanasia.
Insurance against job loss reserves the situation of loss of employment through your own fault. It follows that the loan is not insured if the contract is terminated by the borrower or by mutual agreement of the parties. Only a situation in which the employer dismisses without giving a reason or as a result of a reduction in full-time jobs is subject to such insurance. Health insurance also has a lot of exclusions. As a rule, each insurer gives a list of diseases that you need to get sick for the insurance to work and, unfortunately, these are the most serious diseases known to medicine.