Bank loan insurance is mandatory in most cases. It makes it possible to ensure the repayment of your bank loans in the event of death, disability or unemployment.
Bank loan insurance is not compulsory in the eyes of the law. However, the bank may refuse to grant the loan if the person concerned does not take out bank loan insurance. This is only valid for the mortgage. Consumer loan insurance, on the other hand, is not compulsory.
This depends on the banking institutions, but there are four main bank loan insurance:
This insurance has no age limit. As its name already suggests, the insurance covers part or all of the bank loan in the event that the borrower dies.
This form of insurance reimburses part or all of your bank loan in the event of disability. The insurance actually covers: total permanent disability, partial permanent disability, total temporary incapacity and total loss of autonomy. In these cases, the borrower must present to his financial institution, supporting documents proving his incapacity, from his medical center.
Health loan insurance covers part or all of your bank loan in the event of illness. Each case must be justified by a formal medical certificate. As with disability loan insurance, health loan insurance must be justified by a medical center.
In the event of justified unemployment, loan and credit insurance in Belgium covers, for example, your loan in part or in full. You can benefit from loan insurance if you are an employee on a permanent contract, if you have a minimum length of service. The borrower cannot benefit from this type of insurance if he is on probation, if he is not on notice of dismissal or resignation.
Bank loan insurance offers many advantages for the borrower.
• Insurance provides coverage in the event of hardship such as death, illness, unemployment and disability.
• This form of guarantee also offers the borrower a certain degree of credibility with his banking institution.
• Bank loan insurance also helps avoid indebtedness. She will reimburse the bank through your insurance company. Having such insurance is one less worry for you!
• Taking out bank loan insurance is easy and simple to do.
• It is more than wise to take out bank loan insurance to have a legitimate guarantee in the eyes of the bank. Insurance not only protects the borrower, it also provides security for the bank.
The terms of compensation for bank loan insurance depend on several criteria. The most essential concern the contract and the duration of unemployment. The contract will provide for total or partial compensation for your bank loan. The duration of compensation for unemployment, for example, is between 9 and 12 months.
You are free to choose your bank loan insurance. It is simply necessary to provide the establishment offering the insurance with all the supporting documents required.