Insurance for a consumer loan
A guarantee for the unexpected
Each one chooses the insurer of his choice, it does not constitute an obligation to contract with the organization which finances the loan . For the disease since 2006 was set up the AERAS convention or to Insure and Borrow with an Aggravated Health Risk.
The death insurance disability is not an obligation but often remains essential.
Types of consumer credit insurance
Each type of credit insurance has its own conditions which are stipulated in the prior offer. There are several types of insurance.
Death disability insurance : it covers reimbursements in the event of a death or if the borrower is no longer fit to work because of his health.
The insurance total and irreversible loss of autonomy. Depending on the disability, the contract may vary. She often offers the same benefits as for a death.
Total Temporary Incapacity or Permanent Partial Disability insurance also varies from contract to contract and refers to the degree of disability.
Loss of employment insurance pays partial repayments or deferrals.
“Aggravated risk” as a refusal factor
A sick person is a factor of hesitation for an insurer because the risk is greater, also called aggravated risk. The AREAS agreement is a way to take out a loan without a health questionnaire.
There are conditions such as the duration of the loan which must be 4 years maximum, the amount is capped at 15000 €, the age of the borrower is 50 years maximum at the time of the application, it is then necessary a declaration on the honor of not accumulating loans for an amount exceeding € 15,000.
The medical questionnaire is mandatory in case one of the conditions is not valid.
The disease is not the only aggravated risk factor, it may also depend on your job or if you practice a risky sport.
The organization for the subscription of the means Consumer credit insurance n
You have free choice for the organization, and you do not have to join your lender. For a large amount, a comparison of insurance offers is essential.
On the other hand, for a small amount, the consumer credit insurance offered by the credit institution is the favorable choice because there will be little economy going elsewhere. However, for another consumer credit insurance, it has the obligation to present guarantees equal to those of the credit agency.
On the other hand, the lending organization can refuse the delegation of this insurance by giving a justification to the borrower.
The lender can not raise the interest rate of its credit if your choice of insurance is turned to a competitor.
The credit institution has the duty to inform the borrower about the consequences of not paying back his credit on his insurance. This avoids the borrower to find himself without insurance for his credit consumption without knowing it.
Since 1 May 2011, advertisements for consumer credit and contracts are obliged to give the monthly price in euros of insurance, so you can easily make a comparison of the offers by the consumer.