You are a bit worried because, like everyone else, you don’t know what the future holds and you want to be sure you can repay your credit until maturity.
Did you know that you can accompany your loan with insurance whose premium is modest and that can protect you from financial uncertainties throughout the life of your credit?
A few words of explanation…
Why take out insurance?
Without wanting to play on the economic situation affecting Europe or Belgium, it is clear that lately, not a week goes by without the media announcing a company restructuring, synonymous with job losses. Unfortunately, this can happen to anyone.
Sometimes you also borrow with your spouse or a third person, and an unexpected death seriously jeopardizes your repayment capacity.
The consequences of a payment default and a denunciation can be particularly stigmatizing.
What types of insurance policies?
Rest assured, you are not without means to overcome this kind of difficulty. The insurances that may be useful to you are generally of two types: unemployment insurance and outstanding balance insurance.
What conditions?
Unemployment insurance
- Be at least 21 years old;
- Waiting period of 6 months after signing the credit contract;
- Be under an indefinite contract;
- Have completed your 3-month trial period;
- Be eligible for unemployment benefits.
Outstanding balance insurance
You must answer a questionnaire that will allow your insurer to assess the risks inherent in your file. Sometimes, you also need to undergo a medical examination.
This insurance protects your heirs and your co-borrower in case of death.
Optional or mandatory?
The conclusion of an insurance contract is always optional. However, some banks will refuse to grant you credit if you do not take out an outstanding balance insurance policy. In this case, you forgo your credit.
Sleep peacefully
The cost of these insurances is not high. Discuss the premium amount with your broker. Generally, this premium is paid in one lump sum and its amount is deducted from the credit amount granted to you.
Peace of mind obviously has a cost, but nothing is worth peace of mind.