Payday Loan protection can generally be recommended for anyone who has taken out an installment loan from a Cream bank or savings bank. However, it is fundamentally voluntary and is not a condition for a loan approval. In principle, every borrower is free to decide whether and to what extent he takes out personal credit protection. meeturplanet.com for further explanation
Residual credit insurance
In most cases, it is common for the borrower to be offered an additional offer for residual credit insurance when taking out an installment loan. The banks work with various insurance companies and offer their products.
Residual credit insurance is particularly useful for those who want to insure themselves and their relatives against certain risks during the term of the loan and who have not yet taken any other measures.
Residual credit insurance is often offered in three different versions. The basic package only covers the event of death, the combined coverage also includes incapacity for work and the complete package offers all-round protection for death, unemployment and incapacity to work.
Residual credit insurance benefits
The Payday Loan protection offers the customer the security that after his death the outstanding loan amount will be settled and the surviving dependents will not be burdened with it.
If unemployment or incapacity occurs during the credit period, the insurance will continue to pay the monthly installments due.
Before taking out residual credit insurance, however, it is always advisable to compare the insurance terms and conditions and to obtain several alternative offers. Some insurance companies, for example, do not pay the death benefit unconditionally. If the borrower has been seriously ill for a long time and dies within two years, it can well happen that the residual credit insurance company refuses to pay for the loan. Special conditions also often apply to unemployment benefits. Details can be found in the insurance conditions.
It is often worthwhile to obtain and compare several offers before deciding on a specific Payday Loan protection. It is not uncommon for considerable costs to be saved. People who already have life insurance or disability insurance generally do not need any additional residual credit insurance from the bank.