Taking out a loan is almost always associated with risk. This is especially true for large loan amounts.
Anyone who enters into long-term liabilities often asks themselves the following question: What happens if my financial circumstances suddenly change? Sometimes life takes a completely different course than expected. A prolonged illness or unemployment, an unexpected move or a divorce - and suddenly the finances get into trouble. In such cases, paying the monthly loan instalments can become problematic.
No one can look into the future, but it is possible to partially protect oneself with insurance cover.
What does credit protection include?
The loan instalments in the event of death are already covered free of charge with all financing options. This aspect is crucial, because it means that the next of kin are also financially protected.
In addition, with some banks you have the option of deferring your monthly instalments free of charge if money is very tight.
Furthermore, we recommend an insurance cover with which you can insure the instalment and interest payments against incapacity to work and unemployment through no fault of your own.
occurrence of loss
If you get into payment difficulties, it is always advisable to inform the lender immediately and to look for a solution together. In the event of disability, incapacity to work or unemployment through no fault of your own, the insurance cover takes effect. In these cases, the monthly loan instalment is taken over by the respective insurance company.
The actual scope of insurance may vary depending on the product as well as the financial institution. The conclusion of a credit protection is associated with additional costs. These are calculated as part of the application for an instalment loan, as the amount of the premium depends on the term and the loan amount.
Save article as PDF: Credit protection - Carefree financing of wishes.pdf