Secure loans. Why it pays and how to choose the policy
Insurance coverage is required more and more often to obtain a personal loan, as also happens in the case of real estate mortgages. The policy protects the institution that provides the loan but also the beneficiary who is unable to pay even a few installments and who would therefore run the risk of being reported to the Credit Information System (Sic) as a bad payer. Death, permanent invalidity, accident, illness, loss of job: there are many misadventures that could prevent a consumer from complying with the repayment agreements signed to obtain a loan and insurance guarantees the extinction, wholly or in part, of the debt, avoiding unpleasant consequences on the balance sheet. Particularly forward-looking, then, is to decide to cover the loan with an insurance policy to protect its heirs. In the event of the death of the beneficiary,
The right to choose the most convenient policy
Banks and financial institutions often require it to sign up to grant the loan (consumer credit in all its forms, including revolving loans with debit cards). It should be stressed, however, that the consumer is not forced to accept the policy proposed to him and can offer an alternative as long as he satisfies certain requirements. The lender, explains Ivass, must accept the insurance policy chosen by the consumer, without changing the terms and conditions of the loan, provided that it provides minimum contents corresponding to those that had been proposed. On the other hand, the policies are often presented as a package, combining life and damage coverage. Services, the latter, that the consumer may already have with other insurance companies. From the signing of the contract, however, the consumer has the right to withdraw from the life and damage guarantees within 60 days and the same loan contract will still remain valid.
The importance of details and the help of comparators
It is essential to always read the contractual terms carefully, paying particular attention, for example, to the commissions received by the financial intermediary and the insurance intermediary. Commissions that are often not indifferent. Furthermore, the insurance premium is usually added to the funded capital and therefore generates additional interest for the benefit of the loan provider. It should therefore be carefully considered whether it is not preferable to pay the premium immediately, thus avoiding the disbursement of additional interest in the future.If the insurance is expressly requested by the lender, the premium to be paid must then be included in the annual percentage rate of charge (Taeg), which includes the interest rate but also all other expenses and ancillary charges and which It is the true indicator of the real cost of a loan.