Consumer credit insurance is an optional insurance offered by the lending institutions in connection with the purchase of a consumer credit. It can prevent certain risks: death, disability, unemployment, etc … How to choose this credit insurance?
Consumer credit insurance, why?
Consumer credit insurance can appear as an additional expense when one has to repay the monthly installments of a loan. However in case of accident of life, it can quickly become indispensable, in particular in the following cases:
- Incapacity of work
- Partial or total disability, temporary or permanent
- Long-term unemployment
By taking out loan insurance, the refunds of your consumption credit are taken care of in the event of an accident by the insurance company. The above risks are covered until full repayment of the loan in case of death or if the duration of your disability or illness exceeds that of the insured credit.
To decide to take out consumer loan insurance, you have to ask yourself at least the following question: In the event of a more or less serious incident listed above, will I be able financially to repay my consumption credit with my income that will have -being diminished and my current assurances?
If the answer is “no”, it is strongly recommended to subscribe the credit insurance consumer proposed by your financing organization which will avoid you to face a situation of overindebtedness if your incomes came to decrease accidentally.
You also have the option of taking out a separate pension plan after other insurance companies with the advantage of having a broader protection that can eventually cover several loans.
The guarantees of consumer credit insurance?
Consumer credit insurance covers the following risks in full or in part, temporarily or permanently according to the contract:
- death-disability: full coverage of the monetary or total repayment of the consumption credit;
- total and irreversible loss of autonomy: the terms of care are different depending on the contract;
- temporary total incapacity or permanent partial incapacity: reimbursements vary from one contract to another according to the degree of disability;
- loss of employment: partial payment of repayments or postponement of the return of deadlines, as the case may be.
Consumer credit agencies usually offer a loan insurance contract, but you have the right to refuse (insurance is optional in the context of consumption credits, it is the law) and you can subscribe to one another on an individual basis with an insurance company.
Guarantees of consumer loan insurance in case of aggravated risk?
This agreement allows you to be covered by consumer credit insurance without a health questionnaire.
For this you have to respect the following conditions:
- loan term of up to 4 years,
- maximum amount of 15000 USD,
- not more than 50 years old at the time of subscription,
- you must declare on your honor not to accumulate more than 15 000 USD of loan (s).
If you meet these criteria, then you will complete a health questionnaire that after analysis will allow the funding agency to decide whether or not to grant you a loan.