Applying for a loan on the internet is a quick and cheap way to get fresh money. Anyone who decides to apply for a loan online, is usually made aware of the conclusion of a risk protection (protection insurance) or pointed out. Mostly, the borrower is already advised during the application for the risk protection in the form of a rate of loss protection insurance.
Is the conclusion of a risk protection worthwhile at all?
In principle, the conclusion of such a protection insurance is recommended. Insurance always has something to do with prevention. On the one hand, the consumer has a guarantee against payment defaults or even insolvency as a result of unemployment, sickness, etc., on the other banks and financial institutions like it when a borrower prevents and takes on his own responsibility preventive measures.
Insurance against installment loss protection no obligation!
It should be noted that the conclusion of a risk protection is not mandatory. However, past experience has shown many customers that if they have opted against a hedge, the chances of getting a loan approval have been much lower.
The reason for this is that the banks and financial institutions have become very cautious in lending. The procurement guidelines have also been tightened enormously, which is why the conclusion of a protection insurance can have a positive influence on the credit approval.
Good protection for little money
The bottom line is that the few Euros that you have to pay for a rate of loss protection insurance is a profitable investment, which is why the conclusion of such insurance by experts is always recommended.
A protection insurance is recommended not only for standard loan options such as the installment loan, but should also be considered for small sums such as a loan without private credit . So you are always on the safe side.