What is more favourable: a loan with or without insurance

The question of whether a loan with or without insurance is beneficial depends on your specific circumstances, your financial capacity and the risks you are willing to take. Let’s look at both sides of this question:

A loan with insurance:

  1. Protection against accidents: Insurance can protect you and your family if you lose your ability to work due to injury or illness by covering your loan payments for a certain period.
  2. Death Protection: If you die while making loan payments, insurance can cover the remaining debt so your family doesn’t have to bear the financial burden.
  3. Psychological comfort: Having insurance can give you psychological reassurance knowing that you and your family are protected in case of unforeseen circumstances.

A loan without insurance:

  1. Money saved: A loan with insurance is usually more expensive due to additional insurance premiums. Without insurance, you will save on these additional costs.
  2. Optional: Insurance is usually not a requirement when entering into a loan agreement. You may decide that the risks in a given situation are insignificant to you and you don’t need insurance.
  3. Other forms of protection: Instead of insurance, you may want to consider other ways of providing financial security, such as emergency savings funds or additional investments.

Deciding whether you need insurance with a loan depends on your financial goals and circumstances. If you believe the risks of income or health loss are significant, insurance may be a wise investment. However, before making a decision, be sure to review the terms of the insurance, its cost, and what it covers to determine if it is beneficial in your particular case.