CyprusLiving

Related to the raising of a personal credit (NOT housing loan), our bank told us we have to effect an insurance to cover the risk.....
It is 80 Euros / month additional to the monthly instalment
Anyone has experience with that, especially concerning the level of the amount?
Is this usual although the credit is absolutely well funded with a mortage?
Any idea to get this cheaper???

Hi,

The bank is entitled to insist on insurance to cover a loan in the event of either of you dying; sometimes they insist on their own insurance but this is not legal. You can take any insurance to cover the loan. The bank insurance is usually quite expensive. In some cases if you refuse to take their insurance they may refuse to give you their reduced interest rates etc.

Most of the banks will not accept employers insurance plans for two main reasons - 1. the cover typically stops if you leave the employer & 2. the cover cannot be assigned to the bank.

Your best bet is to get independent cover and have it assigned to the bank. If you need some advice on this let me know.


All the best