The credit with residual debt insurance offers the best possible protection against life risks. Nevertheless, the residual debt insurance (RSV) is not without controversy. The article provides factually compiled facts and background information on the topic of “Credit and RSV”. The focus of the review is the question of who is worth the protection and what is particularly important.
Credit with residual debt insurance – the bank’s perspective.
The loan with residual debt insurance has existed in Germany since 1957. The main beneficiaries of this credit protection option are the lenders. In modern insurance companies, almost all life risks for loans can be excluded. This is how the specter of unemployment or illness of the borrower loses its effect. This covers the most common reasons for problems with repaying a loan. Even the death of the borrower is insured and there is no longer any risk of default.
This safeguarding of a credit agreement for the banks is additionally sweetened. You get lavish commissions when arranging an RSV. The RSV only has to be included in the annual percentage rate if it is part of the lending requirements. With the optional conclusion, there is no detailed information requirement about the interest rate. For borrowers who of course do not deal with loans on a daily basis, this strategy is not always immediately apparent.
A borrower quickly pays much more than the security would be worth in his special case. The “voluntary” RSV is particularly problematic with regard to insurance premiums. The differences between the provider prices can lead to a doubling of the contribution rate.
The worry-free loan – the borrower’s perspective.
The loan with residual debt insurance has great advantages not only for the lender. Families in particular can quickly get into trouble due to the change in the income of the main earner. Unemployment and sick working conditions have long ceased to be a problem for marginalized groups. It can affect everyone from academics to simple henchmen on the building site. Anyone who is only in such a situation cannot hope for help from the state. The reforms of the “Schröder period” know only one goal for people who have stumbled. Social Welfare, – so that state support is reduced to a minimum.
A look beyond our borders clearly shows where the journey in Europe is going. It is not without reason that people take to the streets everywhere and demonstrate. Most barely manage to provide for their families for loan repayments, there is no more room in the budget. The solidarity protection of one’s own credit obligations can mitigate the consequences for the individual. The loan with residual debt insurance offers this protection.
If you want to act responsibly for your family, you cannot avoid an RSV. Nevertheless, the prices should be compared exactly. There is no point in paying twice for the same risk coverage. The fact that the insurance contribution is included in the total loan amount makes repayment easier. But it is clearly reflected in the lower removal.
The conclusion summarized in one sentence:
Acting responsibly is possible with a loan with residual debt insurance, but nobody should forego the price comparison.