When you apply for a loan at any financial institution, it requires you to purchase a lien insurance. Sometimes it does so in an overlapping way, like a contractual clause whose cost is included in the debt service.
In another expressly, as in the case of mortgage loans and vehicle acquisition. In this article we indicate what is the insurance of relief in the mortgage credit.
What is mortgage credit relief insurance?
Mortgage credit relief insurance is a policy that you acquire for the benefit of the institution that grants you such a loan.
With it, in the unfortunate case that you died or were declared total and permanent disability, the insurance would cover the debt. In this way your heirs are released from the responsibility of said debt, which assumes the insurance.
What is the usefulness of the insurance of deduction in the mortgage credit?
Relief insurance covers two types of events: Which assumes the insurance
- Total and permanent disability.
You can see how they deal with two traumatic situations for the family, both emotionally and economically. Some of them involve the loss of a source of income for the family budget, and the generation of additional costs.
Types of insurance in these cases will be very useful, because:
- Your heirs are free from compliance with the cancellation of the remaining balance of the mortgage debt.
- The security of fulfillment of the payment that this instrument grants to the creditor institution, makes it possible to offer you better credit conditions.
- As the insurance will cancel the remaining balance, in case of death, your heirs will quickly obtain ownership of the property, as part of their inheritance.
- Mortgage credit relief insurance is a policy that you acquire for the benefit of the institution that grants you such a loan.