Best Details for the Perfect Money Management for You

Taking money, we seldom think about the fact that we indirectly involve our relatives in this process. If an accident occurs with the borrower or he suddenly loses his job and cannot repay the loan, the obligations go to his family or property. Fortunately, this risk can be insured by choosing a pillow of safety – credit insurance.

If you have ever taken a consumer, mortgage or home loan, then credit insurance or life insurance for the borrower for you is not a new concept. However for many inhabitants it while the unfamiliar theme. A survey conducted by Swedbank in 2016 showed that about a third (36%) of Latvian residents had never thought about life insurance and the need for this. For comparison, only 6% of citizens have never considered this possibility. From now https://geoffreyjthompson.wordpress.com you will get to know a lot now.

  • Under credit insurance, one really needs to understand life, health or disability insurance of a borrower. When we take large consumer or mortgage loans, our thoughts are mostly the realization of a dream – the purchase of an apartment or car or building a house. The likelihood of an accident or illness seems distant and unreal. However, it is then recommended that you think about the future of your family and provide yourself with peace of mind in a timely manner.

Why choose credit insurance?

The option to choose a loan insurance is voluntary, however it is highly recommended. Life insurance of the borrower will allow you to protect yourself and your loved ones from the risk of losing property due to unfulfilled obligations, especially if you are the main breadwinner in a family who pays a loan for housing or makes other payments. In addition, insurance is very important for families who do not have a financial cushion or savings.

For example, during the past year, the statistics of the DNB bank and the ERGO insurance company recorded 20 cases when a family with housing purchased in a mortgage loan was left without one of the breadwinners, but insurance helped to fulfill the remaining financial obligations and even saved from loss of housing.

How to insure a loan?

Life insurance of the borrower is offered by all the largest banks in Latvia. Some banks require that the insured loan be taken in the same bank. Other banks do not have this condition, and clients of another bank can insure the loan. The amount of the monthly payment for insurance will depend on such factors as the amount of the loan, maturity and selected risks, as well as the age of the borrower and his state of health. The larger the loan and the longer the maturity period, the greater the monthly payment for insurance.

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