When applying for a loan there are aspects that not everyone is clear about, as is the case of taking out insurance with the credits. We will see if it is mandatory or not.
Is it mandatory to take insurance with credits?
When applying for a consumer credit , some wonder if it is mandatory to take insurance of some kind. Although the debtor can voluntarily and without obligation take the insurance that he deems necessary whenever they fit the credit. At the standard level, the Superintendency says nothing about having to take out compulsory insurance from the debtor in order to request a consumer credit. However, there are for mortgage loans.
There are different types of insurance recommended when taking a credit , whether or not it is mandatory to take out insurance:
There is the insurance of relief that covers before the death of the insured, covering the amount that remains to be paid of the debt. Thus the insurer must pay before death for any reason, except for certain situations called “exclusions.”
Insurance associated with a consumer credit is voluntary. Lien insurance is only mandatory in mortgage loans. In addition to being voluntary the insurance of relief also the unemployment insurance.
Hiring insurance for severance cases is usually the best option when taking a loan. If they do not have any insurance contracted to protect them from non-payment of the loan or loan requested , although they can negotiate and agree to the payment of fees and avoid falling into or leaving the DICOM . Depending on the type of credit contracted , they have options to protect themselves and guarantee payments if they are terminated. Among the options there are this type of insurance:
It is used for vehicle credits, credit cards, large retail stores and for installment purchases. It offers temporary coverage covering the specific monthly amounts that are due if the insured is terminated for the time that he or she wishes to cover.
This type of insurance is obligatory for the applicant of the credit, and the company that grants it is the one that usually demands it and / or to contract, and runs with the payment to the insurer.
Insurance Mortgage Loans
A separate paragraph brings us insurance when contracting a mortgage loan , which establishes situations that include a period to pay the monthly payments before the debtor’s termination, including insurance that pays the monthly payments in a certain period. Such is the case of Mutual Mortgage loans , in which among the requirements they must have insurance such as Fire Insurance and Relief Insurance.
The insurance can be demanded by the mortgage company, or the credit applicant who decides to protect himself without being required to take out this insurance. Mortgage loans push to take out insurance that guarantees the payment of the property for total and permanent disability or death, so the coverage is extended, if not initially included.
In all cases, protection is given by involuntary unemployment, not covered by voluntary resignation or if the cause is attributable to the worker. Insurance is for termination or inability to work, temporarily or permanently. Therefore, there is coverage of total payment of the debt incurred via credit , combined with life insurance due to death.
Protected Credit Insurance
This type of Insurance, on request by the debtor on a voluntary basis, offers the following associated coverage:
- Unemployment (dependent worker)
- Temporary Disability (independent worker)
- Labor Assistance,
- Total and Permanent Disability 2/3
- Serious diseases
- Solidarity Support for Death UF 5.
If they suffer loss of work capacity due to Serious Illnesses, Permanent Total Disability 2/3 or Relief, the Insurance compensates them in the unpaid balance of the Credit.
In short, in some types of credit some insurance is mandatory. In others no. But voluntary hiring is allowed in all cases, leaving a blanket of tranquility on our family in case of not being able to pay the credit.