Loan insurance

• Mandatory

  Insured property under a mortgage, CASCO under a car loan — the collateral is genuinely insured.

• Optional

  Life/employment/default insurance — the bank may raise the rate for refusal but can't force 'its' insurer.

• Cost

  Insurance inside the loan — +1–3% yearly; a separate policy elsewhere often beats the 'bank's' one.

• How to refuse

  Written refusal of optional insurance before signing; if already inside — refinancing or termination per contract.

A 'bundled' insurance is the most common hidden overpayment: 3% yearly over 5 years = 15% of the loan. Ask the bank: 'show me the calculation without insurance'.