Some people feel undecided about applying for a loan : the uncertainty related to the world of work, doubts about future events mean that the choice can be complicated. Fortunately, the remedy for this concern exists: we are talking about insurance on the loan, which protects the applicant by allowing him to serenely face any unexpected event.
We go into the subject in detail and analyze, in particular, when personal protection is included in the price and when, instead, it is optional.
What is a loan with insurance?
As we have anticipated, at the same time as the request for a loan it is possible to activate an insurance policy which covers the applicant by reimbursing the credit institution in cases where the latter is no longer able to repay the sum received. In most cases, the policy premium flows into the monthly payment and is paid conveniently together with the loan. Some companies prefer the separate and early payment of the entire insurance premium, but this is an infrequent request normally associated with mortgages.
The secured loans are loans with life insurance and loss of employment insurance.
If the person is no longer able to pay the installments, the insurance will provide the remaining balance, thus guaranteeing the serenity of the applicant and his family.
Specifically, in the event that the applicant is an employee, the insurance will pay the balance of the residual amount (net of the amount paid up to that point and the accrued severance pay) to then agree a convenient repayment plan with the applicant and adapted to the current income capacity.
In the event that the applicant is a pensioner, the insurance will provide the balance with nothing to claim from the heirs.
Why choose a loan with insurance?
For personal loans the insurance policy is an optional: those who apply for the loan are not obliged to add it. In certain circumstances it is however advisable to evaluate the stipulation, for example if the amount of the loan is consistent with the income situation of the person requesting it.
Many retirees choose an insured loan when they plan to repay the amount over the long term, as additional protection for themselves and their family members. The same decision can come from private employees who, despite being hired for an indefinite period, are not certain that they can remain in the same company for the entire duration of the amortization plan.
The “standard” protected loan: the Cession of the Forthe
The Cession of the Forthe is currently the only type of loan for employees and pensioners that includes the personal protection of the applicant : this feature is among the main ingredients that make up the secret of its success among Italians. The law has indeed established that anyone requesting funding through this formula must also be covered by a life insurance policy and – for workers – on the possible loss of work.
While for life insurance we usually refer to standard tables, the calculation of employment risk varies greatly depending on the type of worker and the solidity of the company in which he is employed.
However, the experience helps to make these assessments quickly and effectively: with over 20 years of specialization in loans with Spesk de Dalpo, Loans & Financing can guarantee each customer a careful and personalized treatment. We are available for advice and custom quotes, request your free quote now!