In the composition of a file for the granting of a loan, there is one element whose importance is crucial. This is the paper that certifies the insurance of a loan. Often overlooked by the general public, he weighs in the balance when deciding to grant the loan.
Definition of loan insurance
Loan insurance is insurance linked to a loan. It serves as a guarantee for the repayment process of a loan. With this insurance, the financial institution that granted the loan is guaranteed that it will be paid. Taking out insurance for a loan is an act that builds trust between the borrower and the people who made the loan. In the event that the client is unable to meet his monthly payments, the insurance must be able to do so.
The different features of loan insurance
Loan insurance offers certain guarantees to loan applicants. Among these guarantees, there is the death guarantee, the incapacity guarantee, the loss of employment guarantee.
Still with regard to the insurance of a loan, there is a delay for the compensation to be made when the insurance contract is put into play. Generally, this period is defined in the insurance contract at the time of signing.
This period must be respected in order to pay the indemnity. To do this, the customer has two possibilities. Either he goes to the institute that granted the loan or he goes to the insurer. In the event that the period specified in the contract is not respected, there may be a loss of compensation.