Premium consists of three parts
When taking out a loan, the borrower can take out optional insurance. The insurance premium is the price that the borrower has to pay to qualify for insurance coverage.
The premium consists of three parts: the risk part, the fresh part and the benefit part. In concrete terms, it covers the risk (death, illness, etc.) of non-payment of monthly loan payments.
When one subscribescreditwe are committed to repaying the sum advanced in the future and in fractions. Many unforeseeable events can help you to be unable to honor the financial commitment of a loan. Theinsurance premiumis there to cover the monthly payments of credit in the event of accidents of the life.
A cover in case of hard knocks
Refund of aborrowing spread out in time. Over a long period of time, multiple unforeseen situations can arise in a borrower’s life. Insurers know this and offer to subscribe, in addition to ready, insurance adapted to credit. The subscription to a borrower insurance is translated by the payment of an insurance premium allowing to cover various risks: death, unemployment, loss of autonomy, partial, total or permanent disabilities …
Monthly payments insured for two reasons
Taking into account the possibility of non-repayment of the sum borrowed and theinterests, the insurance premium covers one or more monthly payments in the interest of both parties: the credit agency and you, the borrower. The lender will not lose the money made available to you and you will not be deprived of the property acquired.
Insurance offered by the credit institution
Theloan organizationsoffer optional insurance included in their offers to better protect the borrower and his family. Fincos advisors are at your disposal to present you the various optional insurance available with your credit.