What is lien insurance?

When you have seen the statements of your credit cards or your loans, you have surely noticed that there is a charge called “insurance of relief”.

This insurance is important for your peace of mind, that of your relatives and of course, that of the bank. In this note I tell you more about this insurance and how it works.

What is lien insurance?

What is lien insurance?

The insurance that is charged in your statements and that allows, in the event of the death of the holder of the debt, it is settled with the bank. That way the debt does not pass to the heirs of the holder.

Is it obligatory to acquire the insurance of relief?

It’s not mandatory. There are banks that make it a requirement to acquire loans or credits with them, while others do not. My advice is to always apply for this insurance and it is that in addition to covering the debt if you die, it will also cover it if you suffer total and permanent disability.

Not only can you purchase the insurance of the deduction offered by the bank you go to. You have the freedom to choose the insurer that suits you best.

Types of relief insurance

Types of relief insurance

The lien insurance can be either individual or joint. In the second case, the insurance is activated when one of the partners dies. In that way, the other is free of the debt acquired in a marital partnership.

Cases where you can purchase a lien insurance

Cases where you can purchase a lien insurance

You can ask for a lien insurance when you ask for personal loans , take out credit cards, ask for a mortgage or vehicular credit, even when you go to one of these stores that offer the installment payment method to get a product.

Relief insurance is important and to protect the finances of your heirs, that’s why you must protect them: debts are inherited, do not leave them with that burden if something happens to you.

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