Ratenschutzversicherung
What are payment protection insurance policies?
The payment protection insurance covers the most important risks of the private borrower and thus offers the customer as well as the family financial security in the event of a claim. The payment protection insurance at Crowd4Cash covers the risks of unemployment, disability and death throughout the term and in the event of divorce for six monthly installments. It takes over the installment payments from the borrower, thereby reducing their financial obligations. The borrower is the policyholder, but the insurance pays directly to Crowd4Cash, which then forwards the payments to the lender as usual. This significantly reduces the risk for lenders, since the most important cases of default are largely covered.
What do rate protection insurance do for crowdlending?
This insurance is particularly valuable in crowdlending because it offers both parties involved higher security. The borrower protects himself and his relatives from the financial consequences of borrowing in the event of a claim. In the event of unemployment and disability, which drastically reduces income, the rates can become a heavy financial burden. The payment protection insurance takes over the installment payments and brings noticeable relief. For the lender, this brings increased security, since the installments are covered and paid for by a financially strong insurance company. Investors see in the investment overview directly with the loan project whether there is insurance protection or not.
What does Crowd4Cash offer and what is special about it?
Crowd4Cash offers the most comprehensive payment protection insurance in Switzerland. As a rule, the insurance just covers 12 monthly installments with waiting period of three months in the event of unemployment or incapacity to work. In many cases, this may bring about a strong, but only temporary, relief. However, this coverage is inadequate, particularly for longer terms. This is very annoying for all parties involved; This means that the borrower can no longer pay his installments and, as a result, is in financial emergency, mostly through no fault of his own. The lender may suffer a partial loss on his investment.
