If banks rates sell loans, and pair that with a residual debt insurance. These policies are intended to protect the mortgage payments in case of death, incapacity or unemployment of the borrower. But many of these insurances are expensive and disappointing in the case of the cases. This is evident from a study by Stiftung Warentest. To describe “the result of this test, it needs only two words: inconsistent and expensive,” said project Manager Stephanie Pallasch.
For the Test, the Foundation had requested in 25 banks for a loan in the amount of 10 000 Euro, with a maturity of five years insurance. How good the protection is, depends heavily on the hedged risk, shows the Test. Best deck to cut the hedge only in the case of death. 18 money houses a very good offer, six is a good certified Foundation test in this case. The weakest Note is not satisfactory.
Significantly worse grades distributed to the Foundation, when it comes to the inability to work as a hedge. The product testers assess 15 of the 25 services as “poor”. Many contracts define the risk very closely. For the payment of a performance is not enough often, when patients can no longer exercise their previous work, other occupations have to be excluded. After all, there are also positive outliers. Santander Bank and SWK Bank cut very well, a further three banks receive a “good”.
Banks cash in on the sale in part exorbitantly high commissions
In the case of the hedging of unemployment a residual debt insurance, disappointments are also possible. In principle, the contracts only help you if you lose through no fault of their place. You must already be busy a certain amount of time with their current employer, and often the performance is limited to twelve months. 17 offers Stiftung Warentest rating of “adequate” or “deficient”.
The contributions for these gaps in coverage can steep fail. Most expensive Deutsche Skatbank is. Over the entire term, the death protection is the cost 531 euros – four times the cheapest bid of the Noris Bank in the amount of 128 euros. Also in the case of the hedging of all three risks, the price of the Skatbank is 2280 Euro is at its highest. For comparison, Degussa Bank shall, for 764€.
For the customer, a comparison is not heard but only difficult because the banks work together, each with a exclusive insurance partner – in the case of the Skatbank, R+V, the cooperative financial group. Critical Foundation does not look that banks the cost of insurance in the effective annual rate of interest is essential. That would be good, so that customers can find the most favorable combination of credit and insurance, says project Manager Pallasch.
The insurance interest rate do not appear cost-effective year, because of the completion of the policies is considered to be voluntary. However, there are always doubts as to whether customers decide always volunteer for this. In any case, the banks benefit from the high commissions of the insurer: According to the financial Supervisory authority Bafin 50 percent of the contributions are as a Commission are not uncommon. You can, however, be higher. The government intends, therefore, an upper limit for commissions.