Anyone who has personal credit should have asked this question himself a few times. After you have the credit in progress, is it possible to cancel the life insurance of the credit? In this article we will answer this and other questions, which comes to mind every month when it comes time to pay another installment of credit.
What Is Life Insurance?
Very briefly, a life insurance is a contract that guarantees the payment of a certain financial amount in the event of a claim that causes death to the invalidity of its owner. For more detail we suggest you look at the differences between ITP and IAD.
Can I Cancel Life Insurance?
The answer to the question depends on the type of credit agreement. In the case of housing credit banks usually require their client to have life insurance (there are some cases where it is exempt, but they are residual). We recently wrote an article on moving home life insurance and we have shown that it is possible to save money on insurance even if there is a rise in the spread.
In the case of personal credit, it is possible to cancel life insurance but provided that the policy provides for monthly payments throughout the contract. Thus, if you pay the full life insurance premium at the beginning of the contract, incorporating the total premium amount into the credit itself, you can not cancel the insurance. Incidentally, it is not by chance that some banks require that the life insurance premium be paid in full at the beginning of the contract.
If you settle the credit, you may recover the amount of the premium for unused time. However, as a rule, you have to ask the insurance company to reimburse you otherwise … many insurers use the policy of forgetting …
Can I cancel life insurance?
We can always make life insurance that covers a certain amount in the event of a claim. What happens is that some specify that the beneficiary is the bank and others that the beneficiary is the safe person or their heirs. So, since you pay the premium you can always take out life insurance.