Is Credit Life Insurance Compulsory?

The priority requirement of a loan customer applying to banks to purchase housing, need or vehicle is to get the loan as soon as possible. The basic criterion for finding the best loan is to find the bank with the lowest interest rate and expense package. For this purpose, customers who have undergone a detailed research process also face life insurance in the expense package during the bargaining phase with the bank. Credit life insurance, which has a low amount compared to the amount to be paid to the loan, ensures that the bank debt is covered by the contracted insurance company in case of death. This product, which also provides the customer with peace of mind during the purchase, is mostly signed at the approval stage immediately without searching for details.


We Signed… .When Was Credit Life Insurance Compulsory?

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Customers who have received loans from the bank have finally bought their dream house or vehicle. After a while, the initial payments for the loan will begin. It is in this period – that is, in the period when the need for purchase no longer exists – what is usually signed is once again questioned. The most frequently asked questions are as follows:

  • “I got Credit Life Insurance, did I get non-compulsory insurance?”
  • Could I Find a More Affordable Price? ”
  • Eki Is it mandatory to take from the bank? ”

Here are the answers to these questions:


It is not compulsory to take credit life insurance!

It is not compulsory to take credit life insurance!

Credit life insurance offered by banks is defined as voluntary insurance in article 4.1.c of the regulation published by the Undersecretariat of Treasury in 2015. This means that you do not have to take out the life insurance offered by your bank. You can review the Regulation on the Principles of Application of Insurance Related to Loans by using this link.

For those who know that the bank’s life insurance offer is not a necessity, a brief inquiry into the benefit of the product may occur. But it prevents the family members who are left behind under the debt burden in case of credit life insurance passed away; As it is a kind of life preserver, its benefit is generally accepted. For those who examine the credit costs in detail, the second question is answered: dim Could I get an offer at a more affordable price?… ”


A More Affordable Offer for Credit Life Insurance

A More Affordable Offer for Credit Life Insurance

Loan life insurance, which is unobtrusive in consumer or small-scale loans, can lead to very serious premiums, especially in large-scale loan purchases or housing loans, depending on your age and credit duration. Naturally in such cases; The right of every consumer to conduct research on credit life insurance offers.

Apart from the offer offered by banks, other insurance companies can offer life insurance offers in line with the loan amount and duration received. You can reach insurance websites or insurance agencies where you can get online offers during the research process.

Don’t forget to get a Credit Life Insurance to offer from Best Finance with an average price advantage of 40% during the research phase. Best Finance offers a wide range of price advantages.

After conducting a price survey and finding a more appropriate life insurance offer, there may still be concerns about the obligation to borrow from the bank. Here the answer to the third question comes into play.


It is not compulsory to take credit life insurance from the bank!

It is not compulsory to take credit life insurance from the bank!

In accordance with the Insurance Legislation, the right of the borrower to choose the insurance company cannot be limited. The credit life insurance you have made with your bank; you can cancel it if you provide an insurance policy that provides you with the same coverage and on which the financial institution from which you borrow the loan is registered. For this, you can apply to your bank with a petition and alternative policy example within one month of receiving your loan.

  • You can examine the provision of insurance legislation as the basis:

Even if an insurance contract has been concluded between the credit institution and the credit intermediary having the identity of an intermediary, if the contracts providing the guarantee and period conditions in the said contract and the registration are submitted to the related institution within one month, the entire policy issued by the credit institution shall be terminated and the entire premium shall be returned.