When collateral is insured, it creates additional guarantees for the bank and the borrower. The bank ensures the return of funds, and the client receives property protection and a reliable source for repaying the loan in unforeseen situations.
A pledge almost never works without an insurance policy. Let's take an example: a borrower pledges a car that he uses for work. After some time, the car is stolen, the borrower cannot earn money and make payments on the loan. He also cannot sell the stolen car to pay off the debt to the bank. If the property was insured, the problem is solved by contacting the insurance company.
Provides payment in case of serious illness (injury, hospitalization, disability of groups I, II) or death of the borrower. If an insured event occurs, the money can be transferred immediately to the bank, to the borrower himself or his relatives.
Carefully read the contract to understand exactly which cases belgium mobile database are covered by insurance. Many companies refuse to cover injuries sustained during extreme activities. These include snowboarding and alpine skiing, motorcycling, diving, martial arts, etc. Often, insurance is only valid in Russia, but not abroad.
Job Loss Insurance
Allows you to temporarily not repay the loan if the borrower loses income. Does not apply to all cases: for example, you should not count on payments if you quit your job of your own free will.
The following situations are eligible for payment:
reduction;
loss of job due to liquidation of the company or change of ownership;
reinstatement of the employee in whose position the borrower worked;
dismissal due to refusal to transfer to another position;
emergency situations that prevent further employment relations.
The specific list of cases depends on the contract, so it should be carefully studied. It is not always necessary to insure against job loss in order to receive a loan. This is only possible if the employee has an open-ended employment contract.