In more than 3/4 of cases of financial debt resulting from loans and credits, the reason is the cessation of the debtor’s liquidity. These are mainly situations such as job loss or reduced earnings or temporary or permanent inability to work. As a result, the debtor earns less or not at all and has no money to pay any outstanding installments. There is a way to avoid this quite easily.
Loan insurance – beneficial help
There is no obligation under Polish law to purchase insurance for financial products. These include bank loans and non-bank loans offered by specialized loan companies. Many industry experts emphasize, however, that for a small monthly insurance premium you can buy yourself a good night’s sleep and a lack of nerves associated with concern for financial liquidity. Loan insurance is the easiest way to obtain help from the insurer in the event of a crisis, unforeseen accident or misfortune. It can take various forms – from repayment of one installment, through partial repayment of a loan to its full coverage. The exact conditions are described in the specific offer and they determine how much the total cost of insurance.
This type of insurance is addressed to all borrowers regardless of the amount of their liability. The insured person’s age is also of minor importance, although it may affect the amount of the premium and the scope of the benefit: pensioners are not covered, for example, by financial protection in the event of loss of job. Before signing the loan insurance contract, a standard form is to be completed, as in the case of life insurance, which specifies the applicant’s data: age, sex, source and amount of income, ascertained diseases and ailments. On their basis, the insurer measures the cost of the service and presents the offer to the client, which he can accept or freely extend to other services offered.
Guarantee of peace
Average insurance rates are not large and will fit perfectly into your home budget. Their relatively small amount will allow the lender more peace of mind and no worries about what he will do in unforeseen situations that will change his financial liquidity. Properly selected insurance is an excellent and nowadays the best guarantee of financial stability in the event of random events: death, serious illness, temporary inability to work or loss.