Do I take mortgage debtor life insurance simple or joint?

Mortgage debtor insurance coverage is a very good option in any home loan operation with a bank. You can find basically two types, the particular joint or the simple one particular. You can choose?

Paying all of your debt

All financial institutions – banking institutions, savings banks, and cooperatives – in Colombia regarding mortgage loans, until you finish paying out all of your debt, the home will stay mortgaged in favor of the bank, which usually entails, by law, the responsibility to contract compulsory insurance coverage against fire and earthquake.

Additionally , within the Basic Legal Circular, it really is again specified that when it comes to housing financing, the shared contract (Credit) and / or the particular promissory note must consist of as a requirement the necessary insurance plan to guarantee the coverage associated with fire and earthquake dangers, as well as insurance defined in house by financial institutions, (NOT MANDATORY) particularly debtor life insurance.

If you ask me personally what life insurance debtors. Home loan should take, if an easy or a joint one, I might answer you with one more question: what is your current lifestyle situation?

The facts, whenever you take a new credit score, you carry out a mortgage financial debt transfer or a credit card you have to think about debtors life insurance. Even though it is not yet mandatory within our country it is wonderful. I realize a couple of cases worthy of movie.

Let’s begin with the definitions. They explain the panorama.

Basic terms

Borrower life insurance: it is life insurance suggested by financial institutions to say yes to and disburse a loan, to ensure that, in the event of death or complete and permanent disability from the debtor, the insurer reacts for the current debt.

Risk: it is a celebration that occurs, that was not prepared and that you did not wish to happen. When it occurs, it comes with an economic need that the plan must cover.

Insured: This is you. The company understands that you are an all natural person and that with the plan you are seeking coverage plus grant it to you.

Joint owner plus joint insured: This could be your partner. Both are realized as natural persons, customers of a financial entity simply because they have requested a loan. Each run the same risks and yes it can happen to one or both simultaneously. That’s why they ask for insurance plan and cover themselves with all the policy.

Named beneficiary: It is the bank with which you are going to do the mortgage loan business. The particular insurer understands that you are a customer of the financial institution and will spend you at the time when you are unable to cover it due to loss of life or total and long term disability of the debtor.

Which of the 2: simple or joint

What is your current lifestyle situation?

Therefore , your marital status is definitely: single or married?

1 . Single:

Suppose you do not have a present marital partnership and you have simply no children. You bought an apartment. You might be the only business owner. Your mothers and fathers live and have no financial obligations. If something happened for you, who would assume your debts?

A simple or person debtor life insurance would include 100% of the debt when needed of the accident. That worth would be canceled by the insurance provider to the bank (beneficiary) as well as your family would not have to suppose any responsibility.

2 . With partner:

If you have a partner plus both decide to combine the particular income in the loan application or maybe the transfer of the mortgage loan, they have to take a joint debtor Life insurance coverage. In this case, the claims should be viewed as follows:

  • Both die and have total and permanent impairment due to illness or incident: the insurer will be accountable for what is owed to the financial institution, that is, all pending payments of the schedule.
  • One of the two dies or even has total and long term disability: the insurance responds simply by this part, that is, this covers the percentage related to the joint insured.

It is likely that despite having a current marital partnership, you choose to buy a property and request the particular credit only in your title. In that case, you would opt for Easy Debtor Life Insurance. However , you have to be clear that one matter is the effect of insurance plus another is that of the legislation. In the event of an accident, your partner offers rights over the assets plus obligations over the debts. There is absolutely no legal consultation, don’t you believe?

Will you pay money for blackberries?

The financial institution offers insurance to cover the chance of losing capital, if some thing happens to you before you complete paying the credit. Consequently , the insurance is valid for that loan. In any case, the insurance covers the amount agreed in the agreement and no interest for past due payment, overdue installments or some kind of other amount that is not the same to the insolute debt (the schedule fee for the 30 days in which the incident occurs). Borrowers will remain in charge of blackberries, accessories, etc .

Home loan Debtor Life Insurance Considerations

Finally, you should be clear these insurances do not cover most of accidents. Extreme sports, for instance , are excluded. A drunken accident, either. Suicidal, it is far from covered. It is important to read these types of conditions.

Within Colombia it is possible to take the insurance policy through the bank or along with your preferred insurance company and request the particular endorsement (knowing that you must satisfy the minimum requirements of the bank). It’s a good option. It is best to evaluate the cost.


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