Credit Life Insurance is a variant of life- assured risk life insurances developed for loans. This product, which is mostly signed between documents when a loan is taken from the bank; in case of death, it enters into the guarantee of the remaining balance of your loan and ensures that the insurance company pays this balance to the bank. Especially because of the loss of income due to the death of the family to pay the loan, this product is the lifeline of many families to save the future.
Do You Know the Real Value of Credit Life Insurance?
While the primary focus of consumers on credit purchases is credit interest rates, the additional costs of the loan are also assessed when negotiating with the bank. Of course, one of these cost items known as file charges and expert fees is “Credit Life Insurance” naturally. So do you show a similar effort given for file expenses in the pricing of credit life insurance? For example, when your bank offers you credit life insurance, do you compare it to a different credit life insurance offer that will secure the same debt? Do you seek a more suitable alternative to your budget in these insurances, whose housing prices are well stocked, especially in the case of large-scale credit withdrawals?
You Don’t Have to Buy from the Bank!
In fact, Credit Life Insurance is not compulsory insurance. However, it is an insurance that is deemed valuable by the borrowers and makes them comfortable because it protects many families against the risk of death. It’s good that you’re comfortable at this point, but that doesn’t mean you can’t look for an alternative for your purse.
There is a very basic regulation that gives you the right to carry out this research and propose a new insurance offer to your bank: The Regulation on the Implementing Principles of Insurances Related to Personal Loans an issued by the Undersecretariat of Treasury 11. :
- ARTICLE 11 – (1) In credit-related insurances mediated by the credit institution; can submit a new insurance policy, which uses credit, meets the collateral and period requirements requested by the credit institution, and which is the credit institution, to the credit institution within one month from the start date of the existing policy or participation certificate.
- ARTICLE 13 – (1) The right of the borrower to choose the insurance company cannot be limited. All conditions stipulated in the insurance contract or credit agreement for the construction of the insurance to a certain insurance company are null and void.