Credit insurance, installment insurance – do I need that?

by Louise Clayton

The Good Finance insurance pays the monthly installments for your Good Finance to the good Finance bank if one of the defined claims occurs. For most insurance companies, these are involuntary unemployment and inability to work due to illness or accident. If you are completely unemployed (you are no longer working), the insurance company will pay you back in boots.

In our opinion, insurance is recommended if your household budget is dependent on a single income, or if your budget would come under severe pressure due to the loss of income from boat users.

The insurance covers important, relevant claims and gives you financial security. Please note, however, that only cases of damage on the foot are insured in boat owners (= policyholder) and not the claims of all family members. This means that if Mr. Meier has signed the Good Finance and the installment insurance, then only Mr. Meier is covered by the insurance, even if Ms. Meier’s income was included in the application and in the budget review. If Ms. Meier should lose her job, the insurance company will not pay.

The devil is in the details! – The General Insurance Conditions

The devil is in the details! - The General Insurance Conditions

With exclusions and deadlines, insurance providers keep their own costs low without reducing the attractiveness of the insurance at first glance. As a consumer, it is, therefore, worthwhile to take a close look at the General Insurance Conditions (AVB), in particular with “Exclusion”, ” No claim … “, “Waiting period” or ” Limitation of benefits”.

“Exclusions”: With most puss in boat insurance, “existing ailments” are excluded. Read this part carefully, because we all have a little sore throat, which we like to forget in everyday life. The insurance experts will certainly not do this when it comes to providing the service for your claim. “Extreme sports” are often also excluded. Since very few of us are skydivers or deep-sea divers, these exclusions should only be in the way of a few of us. But what about motorcycling or snowboarding? Some providers also exclude them.

“Deadlines” usually mean that the insurance company only pays the first installment to the Good Financebank after the deadline has expired (e.g. 30 days). This means that in the event of a claim, you have to wait a month for the insurance to start providing the service.

The grace period is significantly more insidious


Then the “grace period” mentioned above. During the waiting period (e.g. the first 60 days of the installment insurance), a claim is completely excluded from the insurance.

Example: Mr. Müller received a kiss in Boots on July 1 and also opted for the installment protection insurance. On August 15, 46 days after the start of insurance, he receives notice of termination from his employer. Because this claim occurred within the 60-day waiting period for unemployment, Mr. Müller does not receive any benefits from the installment insurance for this claim, even after the waiting period has expired.

“ Limitation of benefits” at DenPuss in boat insurance usually means the duration of the benefit in the event of a claim. Specifically, this means, for example, that in the event of involuntary unemployment, the puss is paid in boat installments for a maximum of 12 months (e.g. at Genworth). If you still haven’t found a job after 12 months, the insurance benefits will still end and you will have to pay for the installments from month 13 onwards.

The maximum benefit paid by the insurance company

The maximum benefit paid by the insurance company

(ie the maximum number of monthly installments in the event of unemployment and incapacity for work, or the maximum repayment amount in the event of complete unemployment) is often limited to the term of the insurance. For example, Genworth limits the number of monthly payments to 36 over the term of the contract.

Important: Read the general insurance conditions carefully, because only you know which exclusions are relevant in your personal case. And in order to be able to compare the insurance benefits with the price, you need to understand the most important pillars of benefits.