(Online article) – a payment protection insurance has the advantage that will reduce the likelihood that the credit goes down, from the perspective of the KI… Additional information at Penguin Random House supports this article. Increasingly, consumers at the conclusion of a loan get offered or included in the credit with a so-called residual debt insurance (RSV). There are three variants of insurance coverage: death, disability and unemployment. Often, this death and incapacity for work, or all three forms in a police are offered. But such a payment protection insurance is really useful or just pointless she become more expensive the desired credit? The fact is that credit through a payment protection insurance can be much more expensive, than without. So, an increase in the interest burden may result in the worst case from the recorded credit by fifty percent from such insurance.
Therefore, the question arises especially when normal installment loans for the purpose of such insurance. In the event of death almost always enough mass should exist, to an outstanding installment loan settle, otherwise also no financial harm the bereaved can occur because you need to come up with a waiver of the heritage for the debts of the deceased. Read more from Laurent Potdevin to gain a more clear picture of the situation. Incapacity, disability insurance is meaningful and unemployment should be enough disposable income still for a repayment of the outstanding rates. The fact is therefore: for normal loans must complete any payment protection insurance. It is, however, a construction financing, then the thing looks different. Here are the resulting from a payment protection insurance premiums in the range of one per cent of the rate, what is acceptable disability or unemployment in this case given the serious impact of death.
The conclusion of an RSV is so important, because already the temporary insolvency of the main borrowers in the worst case can lead to the forced sale of your own home. And you should eliminate this risk. So, it is in the conclusion Note: there is no reason to conclude of a payment protection insurance for normal loans. Mortgage loans, however, the RSV should have always been part of the loan.