Payment protection insurance is an important add-on to loan and lease agreements. The obligatory instalments are covered by the insurance against financial risk of death, incapacity to work and unemployment – and we offer divorce cover as well.

As a debitor or leaseholder you are under an obligation to pay instalments over a fixed period. If you lose your job or become temporarily unable to work, your income drops sharply. For example, independent research has shown that 30 per cent of Germany’s population would be unable to sustain their standard of living in the event of unemployment or disability. This often means that people cannot pay their credit instalments. If you take out payment protection insurance, we will pay the instalments during this time and therewith make things easier for you at this difficult stage in your life. If you die, we will repay the outstanding loan, thus relieving your family from this obligation.

As a rule, there is a single premium payment which is taken out of your loan. This means that you pay only your monthly loan or lease instalment; the payment protection insurance is included.

The payment protection insurance starts when you sign the loan or lease agreement.

The duration of the insurance depends on the lifetime of the loan or lease agreement.

Don’t forget that the risks of incapacity to work, unemployment or divorce aren’t covered by conventional life insurance. Another advantage is that you will automatically be accepted for the insurance with few restrictions and no prior health questions. Moreover, your existing life insurance probably does not cover payment obligations that might come up to your dependents from unpaid loan instalments. Don’t bequeath debts: protect your family by taking out payment protection insurance. Your dependents might not be able to sustain their standard of living, if your debts also have to be paid by your classic life insurance.

In case of death the unpaid instalments up to the expiry of the loan or lease agreements are paid as a lump sum up to the maximum stipulated indemnity. You can also take out cover for a different final instalment.

Incapacity to work is the disability to work for a certain time as a result of illness or after an accident.

While you are unemployed the agreed monthly payments will be paid by the insurance. If you are unemployed more than once during the lifetime of the insurance you can invoke the payment protection insurance more than once as well.

First we will check whether the reported case of incapacity to work occurred as a result of an insured circumstance. We cover accidents and all illnesses not expressly excluded in your policy, so long as they were not already known one year prior to the beginning of the insurance. If there are no exclusions, you will receive the indemnity due to you at the end of the contractual waiting period. 

The Insurance pays a monthly instalment retrospectively for the month in which the illness is diagnosed. Prior attestations cannot be taken into account. However, because the lending bank requires the monthly loan instalments in advance, there may be a payment gap which you might have to fill in accordance with the agreement you made with your creditor or lessor. In this case it is advisable to seek information from your bank.

While you are unemployed the agreed monthly payments will be met out of the insured sum. If you undergo more than one period of unemployment you can invoke the payment protection insurance more than once as well.

• The insured person’s employment contract is terminated
• The insured person has not provoked the redundancy
• The insured person declares himself to be unemployed and actively seeks alternative employment
• The insured person receives unemployment benefits

The average period of unemployment in Germany is 9¹/₂ months. This means that, as a rule, a maximum payment period of 12 months is sufficient.

If you get divorced the insurer will make a single payment or a monthly instalment as agreed in the settlement and so take the burden of the insured person.

After you report the claim we will get in touch with you and ask you for the necessary documents.

Every time a payment is made you will receive a statement showing the time and amount of the payment.

No, please send us the originals of all documents, completed and signed.

When you signed the loan agreement you agreed that all insurance indemnities should be irrevocably paid into your loan account with the creditor or lessor.

You can consult the conditions for payment of indemnities and the exclusions in the insurance terms and conditions.