When you take out a consumer credit, insurance coverage is required in case of problems. What exactly are we talking about? Which are mandatory and which are optional? Do the services differ from one bank to another or are they identical for all? From what time and for how long do the insurances take effect?
there are 3 insurance coverages:
- Insurance in the event of death
- Health and accident insurance
- Unemployment insurance
Compulsory and optional insurance
Obligatory death insurance
Death insurance is the only mandatory insurance. It is included in the interest rate.
Optional recommended insurance
We recommend that you also take out sickness / accident and unemployment insurance, especially if you have borrowed a large sum. If you decide to take the risk of not subscribing to any, make sure that with 30% less income, you are able to repay the monthly payments without affecting your vital needs.
Insurance in the event of death
In the event of death, the credit is completely canceled and the insurance company reimburses the bank for the entire amount lost. And if you are married or cohabiting, don’t worry, your relative will not have to refund anything!
Benefits linked to death insurance are regulated by the Consumer Credit Act and are therefore identical for all banks.
Health and accident insurance
Differences between banks: the time of beginning of assistance
In what period of time does health and accident insurance intervene if you have a health problem that prevents you from working while you are repaying a credit?
First of all, the contract must have existed for at least 3 months.
Then the period from which the insurance will start varies from one bank to another. In general, the insurance takes effect from the 4th month after the onset of the health problem. To take the example of a separate case, the Best Bank (in French) will pay the monthly payments only starting from the 7th month.
Coverage can extend up to a maximum of 2 years, ie the statutory deadline. Then disability insurance comes into play.
To be eligible for unemployment insurance, the contract must also have existed for more than 3 months.
Then insurance only comes into play if your situation meets the conditions for obtaining unemployment benefits, such as being fired and working full time for the previous 12 months.
Finally, the maximum coverage period is 2 years.
Differences between banks: the amounts repaid
Unemployment insurance from all banks reimburse all of the monthly installments, except the BCG which will reimburse only 50% of the monthly installment.
PS: the terms shown in this article are purely indicative.