Are you considering taking out a loan or credit: whether it is an installment loan or a mortgage?
You are a bit worried because, like everyone else, you do not know what the future holds and you want to be sure that you can repay your loan until it matures.
Did you know that you can supplement your loan with insurance whose premium is modest and can protect you from financial uncertainties throughout the life of your loan?
A few words of explanation…
Why take out insurance?
Without intending to exploit the economic situation affecting Europe or Belgium, it is evident 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 puts your repayment capacity seriously at risk.
The consequences of defaulting on payments and a denunciation can be particularly stigmatizing.
What types of insurance policies?
Rest assured, you are not without means to deal with such difficulties. The insurances that can be useful to you are generally of two types: unemployment insurance and outstanding balance insurance.
What are the conditions?
Unemployment insurance
- Be at least 21 years old;
- Waiting period of 6 months after signing the credit agreement;
- Be in a permanent employment contract;
- Have completed your probationary period of 3 months;
- 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 the event of death.
Optional or mandatory?
Signing 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 forfeit your credit.
Sleep peacefully
The cost of these insurances is not high. Discuss the amount of the premium with your broker. Generally, this premium is paid in one go and its amount is deducted from the loan amount granted to you.
Peace of mind obviously comes at a cost, but nothing beats tranquility.
