Do you want to set up a credit redemption? This operation makes it possible to consolidate several outstanding debts in order to have only one reduced rate loan. In this case, is insurance essential? Read arropaydayloans.com for a critique
The credit buyback is a particularly interesting operation for borrowers who want to rebalance their budgets, since the rates have never been so low. If you redeem your credits, however, you should be interested in borrower insurance. Explanations.
Credit redemption: why buy a borrower insurance?
The borrower insurance insures the bank the repayment of the loan in case of death or disability of the subscriber. It is therefore a real protection for the latter and his relatives but also for the bank. If legally, credit repurchase loan insurance is not mandatory, in fact, banks consistently require this guarantee. Indeed, in the context of a credit redemption, the new bank that bought the old loans will impose this insurance to guarantee the new credit.
The financial impact of borrower insurance is often underestimated. As a reminder, this coverage can represent up to one third of the total cost of credit. This is the second largest expense item after bank interest.
Reduce the cost of loan insurance in case of credit surrender
The borrower who resorts to the repurchase of credit profits from the provisions of the law Lagarde which gives the possibility of subscribing a insurance of loan other than that proposed by the bank. In other words, it is possible to take advantage of this operation to play the delegation of insurance and get cheaper coverage.
By putting insurers in competition, the borrower can halve his insurance contributions. The only condition imposed for taking out individual loan insurance: respect the equivalence of the guarantees between the two contracts. Once the equivalence of the guarantees validated by the bank, it suffices to adhere to the chosen contract while respecting the administrative and medical formalities and then to send the new certificate of insurance to the lender. This certificate will be included in the credit buyback offer.
Can I buy a loan without insurance?
It should be noted that very few banks agree to set up a credit buyback without insurance. This is due to the fragile situation of some borrowers but also the willingness of banks to protect themselves against the risk of delinquency.
Thus, to make a purchase of credit, it is better to subscribe a borrower insurance. By adhering to this insurance, you guarantee the repayment of your loan in the event of a hard blow (disability, death, loss of employment …). In this case, it is the insurer who will pay for all or part of the monthly payments. To benefit from an optimal credit buyback insurance, start by comparing the offers using an online comparator! This tool saves you valuable time since it sorts the offers for you and only offers the ones that perfectly match your needs.