Some words about Insurance and Banks
Do you know, that Debtor’s life insurance can be one of the credit repayment securities. Generally, insurance money complies with the sum given on credit. This is quite reasonable for the banks, as banks will get its money back even if the debtor dies or looses his/her ability to work.
Mortgaged property insurance can serve as an extra security for banks. This will be of an advantage in case of breakdown of the mortgaged property. According to the insurance contract it’s the banks that get the insurance money, same with life insurance case.