The first thing we are going to do is to know the etymological origin of the term that now concerns us. Thus, we can establish that it is a word that derives from Latin because it is the result of the sum of two distinct parts:
-The prefix “des-”, which means “from top to bottom”.
-The noun "lien", which can be translated as "burden".
The Royal Spanish Academy (RAE ) does not include the term relief in its dictionary . However, terms such as cut off (deduct certain amounts from a fee or base, reduce taxes or fees on certain products) and assessment (tribute, charge or tax).
It is also interesting to establish that this word is a Latinism that appeared as such in the fifteenth century. Specifically, its use as we know it today seems to have started there in the year 1411, according to the documentation of the time.
The idea of relief is used to refer to a safe that covers the payment of debts of the insured in case of death or disability . He relief insurance Therefore, it allows that the debts that a person maintains with a bank or other institution of the financial system do not fall on their heirs.
If an individual, upon receiving a credit, pays a lien insurance along with the corresponding fee, obtains coverage that allows him not to transfer his debt to his heirs if he dies before paying the entire loan. Sometimes, the rebate insurance also contemplates total disability. On the contrary, if the debtor does not have rebate insurance, his heirs must assume the debt.
When the relief insurance is executed, in short, it free the obligation . The insurer assumes the payment of the debt and the heirs of the deceased should not be responsible for the obligation in question.
It is essential that before signing a lien insurance, the person who is going to sign it pays close attention to aspects such as the proposal in general, the cases in which the insurer could not pay, the coverage period, the validity of the insurance and the essential requirements to be able to enjoy that insurance.
It is important to keep in mind that the rebate insurance usually contemplates exclusions . If the insured dies of a pre-existing illness at the time of contracting the insurance, the coverage is without effect. The same happens if the insured commits suicide or dies in an accident that occurred under the influence of a drug .
Dying in dangerous sports, whether the person participates in a war or carries out a criminal act are some of the other reasons that are established as payment exclusions of the insurance underwriting insurance.
Likewise, it is necessary to establish that there are two types of relief insurance: the simple or individual and the joint, which is the option for couples who carry out the application for a mortgage loan jointly or what is the transfer of credit mortgage.