
Due to the difficult economic situation, you should think about various ways to protect yourself from unexpected job loss or health problems. One of these ways is insurance of the payments of the loan. Coop Coop Kindlustusmaakler Raivo Piibor explains what this is and who this solution could apply.If the presence of housing insurance today is already accepted as something self implied, the benefits of insurance of payments on a credit started to recognize only in the last years. It is important to distinguish between the different types of insurance: While housing insurance protects against damage
to the home or the property within it, the insurance of the payment of a credit protects the person. For example, insurance of payments on credit will
help in the case of firing or if the employer has substantially breached their obligations under the contract, because of which the employment contract had to be terminated. It is also helpful if the insured person has lost the employment because of an illness or an accident. It is important that the problems with health are proved by
medical documents or diagnostic tests. The Payment Insurance on the loan covers the basic amount of monthly payments and interest. Although the cost of insurance and the specific conditions depends on the agreement of the loan and the policy the customer has signed, Coop Coop Pank
can say that insurance allows to cover the payments of a loan for up to 1500 euros.
According to Department of Statistics data, the unemployment rate in the third quarter 2024 of the year was 7.4%. Compared with the previous year the number of unemployed increased by 1500 people. It is known that every person should have a so called “peace of mind fund” savings that cover at least three months’ expenses. Ideally
these funds should be divided between term and savings in deposits, so that they will earn interest over time and increase in size. But not everyone has savings, and sometimes they may just not be enough. For example, a person doesn’t find a
new job right away, or the loss of employment delays, but without insurance the payments of the loan, reaching thousands of euros, always need to pay. A Insurance of payments on credit is to think to everyone who
works for hire and wants to protect from unexpected circumstances. It is especially relevant for those who have no or sufficient savings, so that in the case of a loss of income, there will be no problems with the payment of the loan. It is also important to
consider the probability that the business where you work may have financial trouble, which will lead to downsizing or even closing the business. The most often these risks are higherin startups or in firms already experiencing financial problems.
For many people the most large monthly expenditure is the housing credit, so its insurance is especially important. If you can still save money on other expenses, the roof over your head must remain forever. For example, with monthly payment on credit in 300 euros the cost of insurance will 10.5 euros, and the maximum amount of compensation will reach
3600 euros. It should be taken into account that the insurance does not cover cases where the employment contract is terminated by agreement between the parties, if the term of the term of the employment contract has expired or if the process of terminating the contract began before the insurance policy becomes in force. Parents
need to remember that compensation for temporary incapacity is also available in the case of illness or an accident, occurring to a child under 18 years of age, under the condition that the Disability List has been filed with the
Health Office and approved by it. Insuring the payment of the credit creates more confidence in that, that when the loss of income or when sudden sudden problems with health the credit obligations will not remain outstanding and indebtedness to the bank will not
occur.Therefore, in addition tohousinginsurance,it is worththinkingabouttheinsuranceofthecredit.