Credit Life Insurance
What is credit insurance and who pays the debt in case of death?
People with a stable income can solve many financial problems by taking out a loan. However, the main question that concerns many people is: if the borrower dies or becomes disabled, who will pay the loan debt?
To eliminate these risks, credit life insurance is applied.
How is the loan repaid in case of death?
If the insured person passes away, 100% of the outstanding loan balance is paid by the insurance company. Thus, the debt does not fall on family members.
How are loan payments regulated in case of disability?
If the insured person is assigned a disability degree that limits working capacity, the insurance payment is made in accordance with that degree — either in installments or as a lump sum.
What advantages does credit insurance provide?
- Protects the financial security of the family
- Eliminates the risk of debt obligations to the bank
Choosing credit insurance when taking out a loan creates long-term financial peace of mind for both you and your family.
FAQ
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1. In which cases does credit insurance make a payment?
According to the insurance contract, credit insurance provides coverage in the following cases: 1. Death of the insured person — 100% of the outstanding loan balance is paid by the insurance company. 2. Disability resulting from illness or accident — in cases of full or partial loss of working capacity, loan payments are covered by the insurance company.
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2. For how long is the insurance contract concluded?
The credit insurance contract is concluded for the same period as the loan and remains valid until the loan payments are fully completed.
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3. Are there any age restrictions?
The age limit for obtaining credit insurance is between 18 and 65 years old, and at the end of the insurance term, the insured person must not be older than 65.