It often happens faster than you think: a sudden illness, an accident, or the unexpected loss of a job, and suddenly your household budget is thrown into disarray. For many Swiss people, a single life crisis is enough to lead to serious payment difficulties. Especially when monthly loan payments can no longer be made, debt collection proceedings, negative entries in the ZEK credit report, and a worsened credit rating threaten, making future financing virtually impossible.
This is precisely where a so-called Swiss residual debt insurance or installment insurance It steps in when you can no longer manage on your own. It reliably takes over your loan payments in difficult times, protects you from the debt trap, and ensures that a personal crisis doesn't turn into a financial catastrophe. Credit protection in Switzerland It is thus gaining in importance.
A recent report by SRF reveals the causes and unpleasant effects on those affected. You can read the article and find out more here: Households trapped in debt: Where the problems lie – News – SRF
Security when it matters most – with Cashare Protect
To ensure our borrowers are as well protected as possible, we offer the Cashare Protect residual debt insurance to.
It steps in when life unexpectedly takes a different turn. This protects not only our borrowers, but also their families and the investing crowd.
For us, responsible financing means not only fair conditions, but also security and trust in every situation.
How does residual debt insurance work?
Residual debt insurance for a loan is specifically designed to protect ongoing installments in three key risk scenarios:
· In the event of death The outstanding loan balance is covered up to a specified maximum amount; with Cashare Protect, this limit is up to CHF 100,000 No deductible and no waiting period. This means that surviving relatives do not have to bear any additional financial burdens.
· In case of total incapacity for work In the event of illness or accident, the insurance covers your monthly premium (up to CHF 2,000) for a maximum of twelve months per claim. The waiting period is 30 days, a short time before coverage takes effect.
· In the case of involuntary unemployment Monthly installments up to CHF 2,000 are also covered, likewise for a maximum of twelve months, but with a waiting period of 90 days. This insurance against unemployment while holding a loan effectively protects you from financial hardship.
Life insurance is mandatory for all borrowers and is automatically taken out. Only disability and unemployment insurance is optional.
This ensures that your obligations are met even if your income disappears, at least for a crucial period that gives you some breathing room.
Why this credit protection is so important in Switzerland
Credit insurance in Switzerland is not just a precautionary measure. In many cases, it can be the decisive factor that prevents you from slipping into over-indebtedness.
Especially with large loan amounts or longer repayment terms, even a short period of lost income can have disastrous consequences. Insurance stabilizes your budget during this time. protects your credit rating, helps you, to avoid a ZEK entry and protects you from a whirlwind of reminders, debt collection proceedings and additional interest.
It also offers security for families and partners: In a crisis, they won't suddenly be burdened with outstanding payments. Investors also benefit, as the loans continue to be serviced even if the borrower gets into difficult circumstances.
Two short stories (because scenarios speak louder than theory)
Aline, 39, project coordination
A skiing accident, surgery, months of rehabilitation. Income drops. With loan protection insurance, loan payments are covered during recovery (within the policy limits). She focuses on physiotherapy – not on payment reminders.
Marco, 45, Team Leader
His position is eliminated as part of a restructuring. After the waiting period, the insurance policy temporarily covers his monthly payment until he finds a new job. He starts fresh – without a break in his credit history.
These are illustrative examples; the actual coverage depends on the Insurance terms and conditions and your situation.
Who can get Cashare Protect insurance?
There are usually clear requirements for taking out residual debt insurance:
You must be between 18 and 65 years old, live in Switzerland, and be employed for at least 15 hours per week in a permanent position. Furthermore, you must not be aware of any impending dismissal or of being unable to work.
There are also exclusions: Voluntary unemployment, termination during the probationary period, pre-existing medical conditions, or certain mental illnesses without inpatient treatment are generally not covered. Therefore, it is worthwhile to carefully review the terms and conditions before signing a contract.
Is it worth it? A brief decision framework
- Credit profile: Higher amounts and longer maturities increase the risk.
- Income stability: Industry volatility, contract type, health profile.
- Emergency fund: Can you manage 6-12 months of repayments from savings?
- Policy Fit Limits, waiting times, maximum duration and exclusions that fit your life.
- Consider comprehensive protection: How does the installment insurance complement your existing insurance coverage (accident, illness, disability)?
When several risk factors apply, this type of insurance is often the calmest decision of the year.
Conclusion: Residual debt insurance – a financial safety net in times of crisis
The Swiss Residual debt or installment insurance While not mandatory (except for life insurance), it's a wise decision for anyone wanting to secure their loan payments long-term. It's particularly useful for large loan amounts, longer repayment terms, or irregular income.
This way, you can ensure that a life crisis doesn't automatically lead to financial disaster. With the right insurance, you protect not only yourself, but also your family, your credit rating, and your future.
FAQs about installment insurance (clear answers without technical jargon)
Does the installment insurance pay out from day 1?
Not usually. There's usually a Waiting/Qualifying PeriodBefore benefits begin. Details are in the policy.
Does the coverage apply in cases of partial incapacity for work?
Many products require full incapacity for work, so that benefits can be paid. Definitions and documentation are regulated in the terms and conditions.
What about self-employed people?
Unemployment coverage may be limited in some cases. Benefits in case of illness or accident may still be relevant. Please check your policy or contact us.
Will this affect my interest rate?
Credit and insurance are separate. The goal is to Repayment plan The goal is to stabilize the system in exceptional situations, not to change the interest rate.
Tip:
Before signing up, find out exactly what the benefits, waiting periods and exclusions are, and check whether the insurance suits your individual loan and living situation.
Are you ready to Residual debt insurance Want to apply for a secured loan? Then get started now! You can get closer to your goal in three easy steps.
