Accident assistance is an indemnity benefit. According to the INSS, it is paid as a result of an accident, as long as the person has permanent consequences that definitively reduce their ability to work — the person can continue working and receiving payment. Sickness benefit, for example, is paid for a momentary issue and prevents work.
What are the risks
Releasing a payroll linked to a social benefit can be a “shot in the foot”. This is what Ahmed El Khatib, professor at Fecap and Unifesp, says. For him, a benefit such as accident assistance already has the characteristic of helping to make up the income of a person who has had a problem related to work, that is, who is in a more vulnerable situation.
The aid in itself is already a cost aid that the government established to help the citizen. Now, to commit part of this resource to take out a loan, the person is getting rid of this money in the short term.
Ahmed El Khatib, professor at Fecap and Unifesp
The positive side is that the loan has low interest rates. As the money is withheld directly from the source, it reduces the risk of default for banks, which charge cheaper rates, as they know they will receive it anyway.
Payroll loans can be a good alternative to paying more expensive debts. Carlos Castro, certified financial planner at Planejar, says that a good alternative is to use the money to pay debts with a special check or credit card, which have much higher interest rates. However, financial education is necessary to make good use of credit.
Tags: risks
