No matter how good life is, it sometimes offers us serious tests that test our abilities to deal with them in a proper way. However, when they require more than personal qualities, such as money, then are faced with serious dilemmas that must overcome within certain time frames.
Then it is quite possible that the need to withdraw a certain kind of credit to give us the courage and the opportunity to cope with the given situation is out of the question. The reasons for such a step on our part can be varied – from home or car repair, to meeting urgent health needs or another more serious cause. Regardless of what it is intended for, the loan must be well thought out, as well as your ability to cope with its return.
A modern step that provides you with an extra level of security is the credit insurance that many people already use as an extra plus to the need for peace of mind. Once you’ve signed a contract with your creditor for the amount you’ve paid, it’s good to keep in mind that there’s always the chance that something happens to prevent you from reimbursing the amount.
In short, this means that under certain conditions in which the borrower does inevitably happen to prevent him from returning the amount received, the insurer will assume the corresponding obligation.
In most cases, the risks covered are serious enough
- Hospitalization due to accident;
- Temporary or permanent lack of ability to work, respectively failure to repay the loan;
This type of contract is also guaranteed by the bank or non-bank institution that has granted the amount, and you are left with the peace of mind that there will be no problems with repayment of the loan.
What are the conditions and why you may not be able to sign a contract for such insurance
As a starting point, you should be aware that you must not have a pass in the payment of the insurance fee. Another reason that may prevent this is the presence of registered previous illnesses that led to incapacity for work and possible failure to repay the loan. If these are available in your story then your chances are reduced. Another case is if you are a sole trader. Then you could very hardly conclude a contract against “Unwanted Unemployment”.
This is the contribution you have to make over a certain period of time – in most cases every month, quarterly or yearly. It is predetermined in relation to the assessed risks. In most cases, you get a certain amount of money due for an annual payment.