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 since it is the result of the sum of two well-differentiated parts:
-The prefix “des-”, which means “from top to bottom”.
-The noun “encumbrance”, which can be translated as “charge”.
The Royal Spanish Academy (RAE) does not include the term relief in its dictionary. On the other hand, terms such as deducting (deducting certain amounts from a fee or base, reducing taxes or rates on certain products) and assessment (tax, charge or tax) do appear. See Abbreviation Finder for acronyms related to Relief.
Likewise, it is 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 back in 1411, according to the documentation of the time.
The idea of relief is used to refer to insurance that covers the payment of the debts of the insured in the event of death or disability. The insurance of desgravamen, therefore, allows that the debts that a person maintains with a bank or another institution of the financial system do not fall on his heirs.
If an individual, upon receiving a credit, pays credit relief insurance together with the corresponding fee, he obtains coverage that allows him not to transfer his debt to his heirs if he dies before paying the entire loan. Sometimes, the relief insurance also covers total disability. On the contrary, if the debtor does not have relief insurance, his heirs must assume the debt.
When the relief insurance is executed, in short, the obligation is released. 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 relief 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 period of coverage, the validity of the insurance and the essential requirements to be able to enjoy this insurance.
It is important to bear in mind that credit life insurance usually includes exclusions. If the insured dies from 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 if he dies in an accident that occurred under the influence of a drug.
Dying practicing dangerous sports, the fact that the person participates in a war or carries out a criminal act are some of the other reasons that are established as exclusions of payment of the insurer of the relief insurance.
Likewise, it must be established that there are two types of relief insurance: simple or individual and 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.