What you need to know about loan insurance

We all need to take a loan from the bank one day to complete a project close to our hearts. Buying a house, a car, a motorcycle, renovating a house, going on a trip or even decorating a room are the main reasons why individuals want to get a sum of money. However, most banks today require you to take out loan insurance.

A guarantee for life’s accidents

L’loan insurance makes it possible to face an unforeseen event in life which will make it temporarily or permanently impossible to repay the monthly payments on a loan. Firstly, it can be an accident or an illness that causes partial or total incapacity. Then it can be a period of unemployment. Finally, in the event of the death of the borrower or one of the co-borrowers. This makes it possible to release a sum of money which fully or partially covers the monthly payments and will compensate loss of income.

Systematic insurance

Today, even to get a little consumer credit, will be asked to take out a subscription loan insurance. Or we sign the contract offered by the bank. Either we look for another contract with at least equivalent guarantees. If the banker cannot refuse you a fully equivalent insurance, he can, on the other hand, refuse you the loan if you do not have one, especially if you do not have a guarantor.

The importance of comparing quotes

To start with, it is important to consult an online insurance comparator like Smartoctave to find insurance at the best price. Beware, the cheapest are not the ones that protect the best. It is necessary to check all options and make sure that they correspond at least to those proposed in the financing organization’s contract. You can cancel or renegotiate your policy at any time, during the first year and each year at the time of renewal, by going to check the prices of the competition on specialized comparators.

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