There are themes that we certainly prefer not to touch. Life insurance, for example. I confess that I didn’t like it either, until I saw a friend’s smile when receiving a call, in which he confirmed that his home mortgage debt had already been canceled by insurance.
It’s the best news I’ve heard since the accident. Rafa is going to be very happy. This insurance gives us new life- he told me.
I was surprised. Up and is currently had assumed the credit life insurance as an additional obligation, apart from the process of mortgage credit. But I discovered that my friend was right. It is not just another role. It’s a gift. If something fails, do not fail everything.
What is lien insurance?
All financial institutions – banks, savings banks, and cooperatives – request that a person who is going to take a loan purchase credit relief simultaneously. It is quite common. Sometimes, we don’t even notice it. It is present in the credit card statements and in the financing modalities, such as credits for the purchase of vehicles. This policy has a clear objective: if the credit holder dies or is declared a total and permanent disability, the insurance will cover the unpaid amount of the debt and release the family and heirs from this responsibility.
Rafael had a complicated accident. After several surgeries, the pension system diagnosed permanent disability. Rafa would not work as a surgeon again. The house had a pending debt which would take 12 more years to pay. They had acquired it when Laura was born to have a garden to play. Now the family is calm. Without the burden of credit, my friend can be at home taking care of Laura and Rafa.
Relief insurance is a guarantee for the financial institution. In case the credit holders cannot continue paying the fees, the insurance will respond and the bank will recover the invested capital.
What does it cover and what does it cover?
The insurance is activated in these two cases: Death and total and permanent disability of the holder or credit holders. The death or illness must be demonstrated in order for the bank to receive the money and settle the mortgage debt. And finding insurance company or bank has its own list of documents for these cases.
Of course, there are limits
For example, it is normal for the policy to decide not to pay the bank if the incident occurs as a result of suicide, a car race, a criminal act or a pre-existing illness (diagnosed before taking the credit).
In general, these types of contracts are similar in all insurance companies. It is always important to inform the actual conditions of each person to determine the coverage and exclusions: For example, if you have suffered a heart disease, even if it is already good, if you usually have fun flying small airplanes or practicing high-risk sports , it is better to report it.