Loans with insurance increase security.
After we have taken out a loan, the repayment and the recurring monthly invoices will soon become a major part of the month’s expenses. It is good to be insured against unexpected events.
Many are incurable optimists and never take out any insurance because they never believe that they themselves will suffer either unemployment or illness . However, the statistics indicate that almost everyone gets sick for a long time at some point during working life. Periods of unemployment are a sad feature which, unfortunately, has become increasingly common in the modern economy of many borrowers.
It is irresponsible not to be prepared for unforeseen events such as accidents, illness or involuntary unemployment and unfortunately, lenders do not take much account of customers who have refused to take out insurance to save a deposit – the invoices will dim into the mailbox as usual.
It is bad enough to lose health or work.
Having problems with paying their loans due to lower income can scatter salt in the wounds.
Loans with insurance against involuntary unemployment and illness are a consumer insurance offered specifically for personal blank loans. The insurance goes under many names and is called, among other things; loan protection, loan payment protection, cover protection etc.
A payment insurance enters and takes care of the payment when certain conditions are met. It can be unemployment, sick leave, illness and even death. These insurances are designed to guarantee that the loan is paid monthly as usual and takes over the payment liability from the policyholder.
In addition to the peace of mind a loan insurance provides, it can also bring some benefits as a discount on the personal loan interest rate.
Loans with insurance against unemployment
- Loans with insurance against unemployment
- Loans with insurance against illness
- What does a loan insurance cost?
- Terms for loan protection
- Insure loans against death
The probability of becoming unemployed differs between individuals depending on the employer, the form of employment and many other factors. Despite this, it is not possible to know for sure what the future has in its bosom.
There are too many who have lost their jobs who can testify to their belief that their particular service, company and workplace was the safest one and that the risk of being unemployed was non-existent. Today, even employees in the State and municipality are not sure of keeping their services out of work life, which was often the case in the past.
Installments on loans can be a large part of the monthly expenses and suddenly losing their income can make the private economy coincide as a house of cards.
By signing an insurance when applying for the loan, at least one burdensome expense item can be removed from the household budget if the unthinkable would occur and some day in the future the job would be lost.
Loans with insurance against illness
Even those who today feel healthy as a nut core, strong and at best health can tomorrow be hit by a nasty virus, a serious illness or an accident that causes vertical position in the sick bed to result for a longer period instead of going to work.
The general health insurance does not cover all lost income and this is especially true for the person who gets long-term sick leave. Borrowers and creditors cannot, unfortunately, take any account of such situations unless the borrower has taken out a loan with insurance against illness.
In that case, the loan insurance enters and pays monthly earnings during the time the income is circumvented due to illness. By already taking out insurance that takes over the payment responsibility at the time of the application in the event of illness, the borrower does not have to worry about the fact that the economy will fall into pieces if health in the future should falter. The fee to ensure that the payments for a loan continues as usual when sick leave or unemployment is paid in connection with the monthly cost of the loan being paid.
What does a loan insurance cost?
Terms for loan protection
One common contractual condition is that the protection applies for 12 months for unemployment and illness and covers loan costs of up to SEK 15,000 per month.
In order to be able to subscribe for loan payment protection that takes care of the payments at the unemployed, the borrower must be permanently employed or have a fixed-term employment of at least 12 months.
Insure loans against death
When a person dies, all debts and assets end up in the estate.
Before the survivors receive the inheritance, the estate must pay all the debts by selling movable property, real estate and other marketable assets. By signing an insurance cover, the insurance goes in and pays the entire loan if the borrower should die.