Vale a pena subscrever um seguro de proteção ao crédito?

Is it worth subscribing to a credit protection insurance?

Are you afraid you won't be able to pay off a loan due to unexpected events like involuntary unemployment or an accident that causes disability? This is where a credit protection insurance comes in. However, this is an insurance that requires many requirements. Let's explain how this insurance works.

11 Aug 20234 min

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If you have doubts about credit protection insurance, you can contact insurance brokers directly from Poupança no Minuto. But if you still want to understand if it is worth subscribing to this insurance or not, continue reading.

What is the purpose of credit protection insurance?

Credit protection insurance's main purpose is to financially protect a client from situations of involuntary unemployment or accident resulting in incapacity without earning potential. In these cases, with this insurance, the insurer is responsible for paying the credit installment.

Therefore, it can be an interesting option if you are afraid that one of these unforeseen events may occur, to ensure security. However, you should be aware that this insurance has numerous rules and exclusions.

In theory, how does this insurance work?

In theory, this insurance is ideal for those who want to protect themselves from day-to-day mishaps, in order to not default on their loans.

It is usually done with personal loans or car loans. It determines that, if the insured becomes involuntarily unemployed, suffers an accident or illness resulting in disability preventing them from working and earning income, their credit repayment associated is settled by the insurer.

If it is a situation of unemployment, protection can be guaranteed for up to six months. But if it is a situation of illness or accident, the monthly credit benefits can be ensured until the insured returns to work or reaches the maximum limit of 12 months.

But in practice, there are extensive specificities associated.

In practice, there are many more specificities related to credit protection insurance. Considering that the "fine print" may still be some, being a demanding insurance when it is necessary to trigger it. And it is important to be informed, as some of these clauses may exclude your situation.

The majority of these insurances are only aimed at employees, so if you are self-employed, make sure you are included.

But for self-employed workers, there is a (one of the few) coverage that, in case of hospitalization of more than seven consecutive days, ensures the payment of the monthly credit or defined capital installment. And if the hospitalization period exceeds 30 days, the insurance pays a limit of 12 months per claim. However, hospitalization cannot result from various conditions, such as a preexisting illness or pregnancy.

Furthermore, this insurance only covers dismissals if they are unilaterally promoted by the employer. That is, if your fixed-term employment contract ends and is not renewed, if you become unemployed after a seasonal job, or if the dismissal is promoted by mutual agreement you do not have the right to trigger the insurance.

Credit protection insurance exclusions

As a rule, coverages with expenses related to lower back pain and psychiatric pathologies like nervous depression are excluded.

In general, self-employed workers are also excluded from most coverage options.

Afterward, also contracts with less than 12 months duration or precarious employment relationships are excluded from this insurance in most insurance companies.

And still pre-existing conditions and pregnancy are two conditions that exclude, from the start, inclusion in this insurance.

How to activate insurance?

After subscribing to the insurance, note that there is a waiting period of at least 60 days. But this period can be extended up to 90 days.

There are several bureaucracies that the insurance company requests when activating the claim. To activate the insurance, you must be registered with the employment center, prove it through a document, submit a copy of the unemployment situation declaration from the employer, a copy of the dismissal letter, and a copy of the employment contract.

But there is another specificity... if the temporary absolute inability to work is due to an accident or illness, the insurance can only be activated if you cannot work for a period longer than 30 consecutive days.

Attention: if you activate the insurance now, know that you can only activate it again after working for six active months.

Need more information about insurance? The insurance brokers Poupança no Minuto can clarify your doubts and help you with your insurance portfolio.


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