Answer
Loan insurance is part of the total cost of borrowing, but its cost depends on the product, the bank and the policy terms. Older reference materials give varying estimates, from a fraction of one monthly payment to several payments plus VAT, so calculate the cost from the repayment schedule for the specific offer.
Before signing, ask for the total cost: principal, interest, fees, VAT on services, insurance, penalties and the total amount payable. A low monthly payment can conceal a lengthy term or costly add-ons. Compare the full contract, not the advertised rate.
Problems with your insurance record can affect access to credit if an insurer declines cover or classifies you as a risk. Do not provide inaccurate information about insurance. Keep the policy, payment records and notification terms so that a dispute does not cost you both cover and the bank’s trust.