Credit housing life insurance: What are the coverages?
A life insurance associated with a home loan needs to cover occurrences, so that banks allow the loan to be granted. The objective is for banking institutions to protect themselves and have the credit amount reimbursed in case of a claim.
What does a credit life insurance cover for housing loans?
The life insurance for mortgage credit must cover, at least, the following events: Death, Death by accident, Absolute and Permanent Disability (IAD) and Total and Permanent Disability/Definitive Disability for the Profession or Compatible Activity (IDPAC). It can also include coverage for serious illnesses, funeral expenses, or a second medical opinion.
Death
To protect themselves financially, banks require housing credit customers to take out death coverage in their life insurance.
If the borrower dies during the contract period, the insurance company is responsible for paying off the loan.
Death by accident
Distinguishing from the coverage above, there is also coverage for death by accident. That is, if the client suffers an accident, whether on the road or not, the insurance company guarantees the payment of the capital, subject to the conditions established in the policy.
Absolute and definitive invalidity (ADI) & nbsp;
Coverage for Absolute and Permanent Disability (IAD) covers occurrences, illness, or accidents resulting in a level of customer incapacity of 80% or more.
That is, if the policyholder becomes unable to work and needs assistance with vital needs (vegetative state), this coverage reimburses the loan to the bank.
Total and Permanent Disability (TPD)/Permanent Disability for Compatible Profession or Activity (PDCA)
Total and Permanent Disability Coverage (TPD) covers occurrences, illness or accidents, that leave the insured person with a disability of 66% or more.
So, if the customer becomes incapacitated and is unable to earn income and carry out their professional activity, life insurance guarantees the repayment of the mortgage to the bank.
The ITP coverage is the same as the coverage of Permanent Disability for the Profession or Compatible Activity (IDPAC), which can have either of the two denominations depending on the insurer. That is, if the insured client loses an essential limb for the performance of his professional activity, his mortgage will be paid by the insurer.
Serious diseases
You can also add coverage for serious illnesses that can precede the coverages above for death or disability.
If the client is diagnosed with cancer, heart attack, or other diseases during the coverage period, the insurance company will pay off the loan.
Funeral expenses
On par with death coverage, you can ensure that the insurer covers the expenses associated with the funeral of the insured person.
Second medical opinion
Second medical opinion coverage goes hand in hand with coverage for serious illnesses. It may be necessary to obtain a second opinion and, by contracting this coverage, you guarantee payment of this expense.
Regarding housing credit, these are the most common coverage of an associated life insurance. Anything that implies the policyholder being unable to earn income and pay monthly credit installments, banks require you to hire.
The life insurance premium will depend on the coverage purchased, as well as the client's profile and age.
The more coverages you hire, the higher the premium will be, and the older you are, the higher the premium will be. But the more policyholders you include in the insurance, the lower the premium will be.
Do you have more questions about hiring life insurance? The insurance mediators from Poupança no Minuto can help. Through a free, fast, and assertive service, they ensure that you hire the most suitable life insurance for your home loan.