The transfer of the fifth is certainly a “hot” topic to the present day because it affects all of us (workers and pensioners) who, in order to carry out any of our projects but lacking sufficient liquidity, decide to enter the “world of loans”.
If you’re wondering whether to request it or not and what would happen if the debtor dies, well … you’re in the right place.
Without going back into detail the whole sale of the fifth (as you can find more detailed information on what the assignment of the fifth and all its operation in the appropriate article ), let’s see what are the advantages of this particular form of payment:
– The very first that comes to mind is that even the so-called bad payers (which is a label used for those who, having paid one or more installments of a loan late, have been reported in CRIF) can also request and, above all , obtain a loan with the assignment of the fifth because, as we will see below, it is a secured loan;
– Precisely for the guarantees offered upstream, it is a loan that is granted more easily than other forms of financing.
Let’s say that these are, broadly speaking, the main advantages of this particular form of loan.
I said a little above that the sale of the fifth is a ” guaranteed loan “, yes, but … what does this mean? And above all, guaranteed by what?
Although the paycheck or pension of the borrower is already in itself a guarantee for the loan, they are not sufficient.
It is not by chance that when a transfer of the fifth is requested, it is necessary, as it is mandatory, to proceed with the signing of an insurance policy .
We distinguish between life insurance policy and employment risk policy: for the purpose of concluding a transfer of the fifth, both must be signed.
Let’s see them in more detail
What is the employment risk policy
It is a form of insurance that guarantees the bank or institute that provides the loan against the risk that the worker loses his job, either by resignation or by dismissal. The insurance obviously has a cost, the value of which depends on the degree of probability that the worker loses his job; not surprisingly, for public and state employees the cost is lower, while it is certainly higher for private employees.
We can also distinguish two different types of use risk policy, namely:
it is a single premium policy, ie the sum is paid in a single payment and at the time the contract is signed. The cost is supported here by the bank;
it differs from the first because the cost is borne by the customer (when the loan is disbursed) and because it is not included in the item “bank commission”, as in a separate entry in its own right.
Another important difference that must be underlined concerns the different period covered by the insurance: in the case of the pecuniary loss policy, the insurance covers the installments that go from the unemployment period until the moment when the employee is relocated to a new company.
What is the death case policy
It is defined as a contract with decreasing capital, in the sense that the amount of the residual debt decreases more and more according to the installments that in the meantime are paid, and is a single initial premium.
The insured is here the debtor, while the bank is the beneficiary.
The insurance also in this case has its cost that varies depending on some factors:
– Age, for which the more expensive the applicant will be the more expensive the policy will be (it is in fact very expensive for pensioners over 75 years);
– Gender, in fact for men the cost is greater as life expectancy is lower.
But then, if the debtor who got the loan in the meantime dies, what happens? What’s the debt?
Precisely because the assignment of the fifth is guaranteed by the signing of a policy, the answer I think is intuitive.
In any case, to raise any doubts, if the beneficiary of the loan dies, the life insurance policy takes over which serves to guarantee: on the one hand, the bank or the financial company against the risk of insolvency, in this case caused by the death of the debtor and , so that the money disbursed must still be returned; on the other, the same debtor and, above all, his heirs in case of death.
Thus, in the event of death the bank or financial institution will be satisfied thanks to the insurance covering death risk.
In which cases does the insurance not pay?
Some limitations have been provided for the policy of the death risk policy, as it will not cover those cases that consist of:
– in the suicide of the insured person that occurred in the first 24 months from the date on which it was stipulated;
– in the presence of serious diseases or tumors, which had not been disclosed in the self-certification at the time of signing;
– in the hypothesis in which the insured participated in the malicious events that caused his death.
Can I deduct the policy? A practical example
A good news is that in some cases the insurance premium is tax-deductible when making a declaration of income.
In any case, the maximum percentage within which this deduction is made and the maximum deductible amount, in addition to which the deduction does not apply, has been established. In particular, it is possible to deduct 19% for a maximum amount of € 1,291.14, which means that if the premium exceeds this figure, the deduction, however, operates on the maximum amount established and within 19% of the same.
So, for example, if the premium paid is € 750, you can deduct 19% of the sum, then € 142.5; where the premium amounts, for example, to € 2,300, the maximum deduction of 19% still applies to the maximum amount of € 1,291.14 deductible, ie € 245.32.
I hope you have found it useful to read this article to understand some of the profiles of the assignment of the fifth, in this case dedicated above all to the importance of the presence of an insurance policy.