Is it better to secure a loan or not?

Protection payment insurance

Protection payment insurance: security for your loan!

Life often turns out differently from how we plan things. Couples split up, you suddenly have to move, you get sick or you lose your job. All of a sudden you’re faced with new financial challenges. Repayment of monthly loan instalments can become a problem, too. Protection payment insurance helps here – it protects you against the most common risks. Bob Finance shows you the advantages of protection payment insurance (also known as credit protection, contingency insurance or credit default insurance).

When is protection payment insurance possible?

In principle, any borrower can take out a protection payment insurance policy when they take out a loan. Protection payment insurance is also possible for all common forms of credit, including the following:

  • consumer loans
  • car loans
  • mortgages
  • credit card accounts

In the event of unemployment, the borrower is assumed not to be at fault.


Why should you secure your loan?

There is a lot to be said for protection payment insurance. In an emergency, you’re insured and you have one less worry. If you are currently planning to borrow money, you should also consider securing the loan. This has the following advantages:

  • Payment of instalments is protected in the event of work incapacity
  • Payment of instalments is protected in the event of unemployment
  • Payment of instalments is protected in the event of death

Unemployment vs occupational disability

Insurance benefits in the event of involuntary unemployment:

  • Payment of monthly instalments following a 60-day waiting period (up to a maximum of 12 instalments per PPI claim for up to CHF 2,000 per instalment); up to a maximum of 36 instalments during the entire contract term
  • Duration of the insurance: until the end of the loan agreement
  • Can be cancelled at any time within the first 30 days with premium refund or after 30 days with 30 days' notice to the end of a month
  • The cancellation of the protection payment insurance must be made in writing

Insurance benefits in the event of work incapacity and full occupational disability:

  • In the event of work incapacity: Payment of monthly instalments following a 60-day waiting period (up to a maximum of 12 instalments per PPI claim for up to CHF 2,000 per instalment); up to a maximum of 36 instalments during the entire contract term
  • In the event of full occupational disability: The remaining debt is covered up to a maximum of CHF 80,000
  • Can be cancelled in writing at any time within the first 30 days with premium refund or after 30 days with a notice period of 30 days to the end of a month
  • Take out a protected loan now