If you take out a consumer loan, the question arises of insurance protection if problems arise. Which insurance policies are you dealing with exactly? Which are mandatory and which are voluntary? Are the services different depending on the bank or are they the same for everyone? When and for how long are they used?
3 insurances come into question:
- Whole life insurance
- Health and accident insurance
- unemployment insurance
Mandatory and voluntary insurance
Death insurance compulsory
Death insurance is the only compulsory insurance. It is already included in the interest rate.
Voluntary insurance is advisable
We recommend that you also take out health and accident insurance and unemployment insurance, especially if you have raised a large amount. If you want to take the risk of not taking out any of these insurances, make sure that with 30% less income you are still able to pay your monthly installments without restricting your basic needs.
Whole life insurance
In the event of death, the loan is simply canceled and the insurance company pays the entire amount back to the bank. And if you are married or live in a cohabitation, you do not have to worry, your partner does not have to repay anything!
The life insurance benefits are subject to the Consumer Credit Act and are therefore uniform for all banks.
Health and accident insurance
Differences between banks: the start of services
At what point does health and accident insurance come into effect if you have a health problem that prevents you from working and can therefore repay your loan?
First of all, the contract must run for at least 3 months.
Then it depends on the individual banks when the insurance starts. In general, the insurance company intervenes from the 4th month after the health problems have arisen. However, there are also deviations, the insurance of the GenMax Bank (in French) only pays your monthly installments from the 7th month.
Insurance coverage can last up to a maximum of 2 years, which is the statutory period. The disability insurance then takes over.
The same applies to unemployment insurance: your contract must have been running for at least 3 months.
Afterwards, the insurance only steps in if your situation meets the conditions for receiving unemployment benefits, for example, you were dismissed and previously worked full-time for 12 months.
The maximum term of insurance coverage is 2 years.
Differences between banks: the amounts reimbursed
Unemployment insurance from all banks will pay the full amount of your monthly installments, except for the BCG, which only pays 50%.
PS: The deadlines given in this article are for information only.