The 3 things to know:
- When it is optional : for all personal loans (except the fifth loan)
- When it is recommended : for large loans
- When comparing loans, evaluate at least two insurance quotes
Given the present economic moment is not very simple, contracting a loan carries with it the risk that, at any moment, you can no longer be able to repay it. When a personal loan is requested, therefore, banks often request to take out insurance policies with a greater guarantee, to protect both the bank , or the financial intermediary, and the consumer in the event of unexpected events (such as illness, disability, loss of work). , economic difficulties, death …) that can completely or partially affect the ability to repay installments. When one of these events occurs, to obtain coverage it is necessary to document the event to the insurance company.
Loan insurance: what to evaluate
The most common policy premiums, called NKI , obviously represent extra costs and affect the final cost of the loan. It is therefore good to evaluate more than a quote to understand which is the most convenient formula in terms of expenditure. The safest way to know which of the policies is the most expensive with the same guarantees offered is to compare the TAEG , or the annual percentage rate, which includes both the interest rate and all other expenses and ancillary charges, thus expressing the cost real loan. This information must be included in the pre-contractual information: it is good to ask for it both for the loan in general and for the insurance in particular, so that you can make your choice well.
In addition to carefully reading all the clauses to understand if the events covered are compatible with the risks to be assured, it is advisable to inquire if, in the event of early repayment of the debt , it is possible to obtain reimbursement of the unused prize and whether it is foreseen a penalty or not linked to this choice.
Carefully read the pre-contractual information and the clauses or you could find yourself paying unplanned sums .
Optional policies: when it is appropriate to stipulate them
Personal loan insurance is optional , with the exception of the salary assignment which requires by law the obligatory stipulation of a life and risk insurance policy . However, in some cases, for example when the income situation of the client does not sufficiently guarantee the bank on its ability to repay, the credit institution may request that the stipulation of the policy be a necessary condition for the disbursement of the loan. The policy is however always advisable when the amount of the loan is rather high and it is in any case desirable for requests exceeding the 5000 euro loans.
The estimates: what are the obligations of the banks
Since personal loans are included in consumer credit products, the related policies are subject to the rules set by the liberalization Decree. Therefore, as in the case of mortgages, banks must now submit to the client at least two different estimates of insurance companies not attributable to the bank or financial intermediary, to allow the consumer to compare multiple solutions . Obviously you will have to deal with insurance companies that provide guarantees compatible with the needs of the bank, so it is very likely that, in the end, the policy chosen will be the one linked to the bank itself.
You are not obliged to choose a quote proposed by the bank: you have 10 days to independently evaluate other offers on the market and opt for one of these.
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