The credit default insurance comes into play when the borrower insolvent through no fault of their own and the remaining debt, i.e. the amount of the loan that he has not yet repaid, can no longer be repaid. The insurance then takes over the remaining monthly loan installments.
After taking out such credit insurance, the borrower is then protected against certain cases through no fault of his own, such as unemployment, assured. The insurance company steps in and pays the monthly installments for a certain period of time. During this time, however, the borrower should try to find a new job.
The credit default insurance also applies in the Cases one Illness, if it lasts longer than six weeks (i.e. as soon as the continued payment of wages in the event of illness has ended). If the insured dies before the loan has been fully repaid, the insurance company will pay the loan installments for the remaining debt. A prerequisite for the payment of the residual debt insurance is that the borrower has not died of an illness from which he already had before Diploma the credit default insurance suffered. In the run-up to a credit default insurance falls but no health check at.