As you know, obtaining a mortgage loan is a very popular procedure today. However, most banks impose certain requirements on borrowers, one of which is mandatory life and health insurance. However, many still have questions. Many people are interested in whether it is necessary to take out life and health insurance with a mortgage, especially to pay a fairly decent amount of money for it.
To answer the question of whether this procedure is mandatory or not, it is worth taking a closer look at the process of obtaining a policy. It is also recommended to pay attention to the advantages and possible benefits of insurance in relation to a person wishing to receive a loan.
What does insurance provide?
Everyone knows perfectly well that funds for the purchase of living space, as a rule, are issued for a fairly long period (up to 30 years). Such long-term loans are very unprofitable for banks, since during this period of time anything can happen to the client.
If we look at the problem from this side, then in this case we are talking about benefits for the credit institution. Are there any advantages to obtaining such a certificate for the borrower himself? Of course they exist.
For example, if the borrower suffers injuries that lead to his disability, then he will not have to pay a huge commission to the bank for the inability to make monthly payments. In this case, the responsibility for payments falls on the policyholder. In the situation of receiving disability of groups 1 and 2, the borrower will be insured against additional costs. In the event of the death of a bank client who took out a fairly large loan, his relatives will not have to pay off the debt.
Simply put, the insurance company will have to cover all losses of the bank caused by certain circumstances related to the borrower. At the same time, the living space taken on credit will not go anywhere. It will continue to be the property of the borrower’s relatives or himself.
If you inform the bank about the incident immediately after the occurrence of an insured event, then the risk that monthly payments will be increased is reduced to zero. Some people also confuse life and health insurance. The last 2 options are valid throughout the entire mortgage term. This means that you will need to pay annually for the certificate. The interest on insurance will also be recalculated based on the balance of the debt. Therefore, you should think several times before refusing this service. Your best bet is to find out where mortgage life and health insurance is cheaper. In this case, it is worth paying attention to several important nuances. What should you pay attention to?
Where is it cheaper?
If we talk about calculating life and health insurance traffic for a mortgage, then it all depends on individual circumstances. The interest rate can range from 0.5 to 2.5% of the remaining mortgage debt. Of course, even a hundredth of a fairly large loan will hit the client hard.
In order to save as much as possible when taking out life and health insurance for a mortgage, it is worth checking with a bank employee which insurance companies are partners of the credit institution. In this case, you can familiarize yourself with each individual company and consider the existing interest rates.
Although there are online calculators on the websites of insurance companies, they do not always work fully, that is, they do not take into account the individual parameters of clients. It is much more convenient to contact the organization and personally communicate with the manager.
Conditions of mortgage insurance from insurers
The borrower has the right to insure his life and property in any accredited company. This rule is specified in the loan agreement. Despite this, many banks recommend their clients to take out insurance only through their insurance companies. This is wrong, because it violates the law.
In addition to Sberbank Insurance, the client can choose other companies:
- LLC "ISK "Europe-Polis";
- JSC "VSK";
- LLC IC "VTB Insurance";
- OJSC "SOGAZ" and others
Each of them has certain rates.
Conditions for obtaining insurance from popular insurance companies
| Name of insurance company | Rate, % (average value) |
| Sberbank Insurance | 0,25 |
| VTB Insurance | 1,0 |
| Rosgosstrakh | 0,2 – 0,6 |
| Alliance ROSNO | 0,16 |
| RESO | 0,18 |
| Ingosstrakh | 0,14 |
| Alpha Insurance | 0,15 |
It is worth considering that some companies select interest rates individually for each client. The amount of loan debt is taken into account.
Formation of payment under an insurance contract
The cost of mortgage insurance directly depends on the terms of the contract chosen. Life insurance and property collateral insurance are considered mandatory.
Title Insurance – Protection against loss of title. This type of insurance is in demand in the first few years after purchasing real estate.
It is worth considering that the amount of the insurance payment changes every year, since interest on it is calculated on the balance of the loan debt. The amount of payment is also affected by the bank interest rate on mortgage lending. The higher it is, the higher the insurance payment. If the client is ready to close the loan early, the amount of insurance will be reduced.
The following deadlines are established for payment of insurance payments in the mortgage lending program:
- quarter;
- six months;
- year.
The borrower can choose the most optimal option for paying for insurance. All insurance conditions are specified in the contract.
How is insurance calculated?
Of course, first of all, everyone is interested in what could lead to a significant increase in the interest rate for obtaining a certificate. It should be borne in mind that company employees pay attention to the age of the borrower. If he is not young, then, of course, the commission will be much higher.
Also, clients who take out life and health insurance for a mortgage are asked to undergo a medical examination. Based on data on the presence of chronic diseases and other ailments, a decision will be made on the final cost of the insurance certificate.
As a rule, men have to pay large sums to obtain the form. This is due to scientific evidence and mortality statistics: unfortunately, representatives of the stronger sex live much less than women.
Also, the increase in the interest rate may be affected by the client’s position. If he works in dangerous conditions in hazardous production, then, most likely, the overpayment will be even higher. In addition, the amount of the loan and the length of the mortgage repayment period are taken into account. Also, the manager of an insurance organization always evaluates the client’s external data. If he suffers from too much weight, smokes and drinks, then this is also a negative factor that affects the increase in overpayments.
Online purchase procedure
It is mandatory to take out a life insurance policy, but if the borrower still decides to get such protection for himself, then he needs to follow the order of registration:
- make calculations using an online calculator;
- pay the insurance premium by bank card;
- print the electronic policy, which will be sent to you by mail after payment;
- sign it with your own hand;
- provide to the bank for a transaction or for an annual renewal of the contract.
Important point! When applying for a policy online, you do not need to additionally provide a large list of papers or visit the insurance office.
Which insurance company to choose
By default, insurance must be purchased from the insurer that is included in the list of approved (accredited) insurance companies established by the bank.
However, it is also possible to purchase insurance from a non-accredited insurance company. In this case, this insurance company needs to submit an application and documents confirming compliance with the requirements to the bank. The lender will review them and inform the borrower of his decision - whether he will accept protection from this insurer or not.
The main criterion is to determine the reliability and stability of the company. The undisputed leaders of the insurance market in Russia are such companies as:
In practice, most often a policy is issued at Ingosstrakh, because it is accredited by almost all banks, has been on the market for a very long time, has a high level of reliability and allows you to issue a policy via the Internet.
Important point! When calculating using the calculator, you just need to select the bank where you have a mortgage, and then it will select the right insurance option for you.
List of required documents
If you take out real estate insurance with a mortgage, you need to collect a package of title and technical documents for real estate.
If life insurance is not purchased as part of a comprehensive product (life, title, property), then real estate documents will not be required. All you need to submit is:
- general passport;
- application for concluding a contract ();
- a questionnaire with basic information about work activity, the presence of chronic diseases, etc.;
- a copy of the mortgage agreement and, if available, the mortgage note;
- a certificate from the bank about the balance of the loan debt;
- extract from the outpatient card;
- other documentation provided upon request of the insurer.
Important! When purchasing a life insurance policy online, you only need a passport and a mortgage agreement.
Instructions
You can obtain the application form:
- at the bank/insurer office;
- on the official website of the bank/insurer;
- on our website (see above).
Attention! Typically, a life insurance policy can be obtained on the same day of application, unless additional verification of documentation or health status is required.
It is also possible to issue a policy online (for example, under the “Protected Borrower” program from Sberbank Insurance). But this opportunity is not implemented by all insurance companies.
Payment of the insurance premium in 2020 can be made:
- by depositing cash into the insurer's cash desk;
- non-cash transfer of funds to the settlement account of the insurance company;
- from a bank card (for online registration).
Returns and cancellation of insurance
Sometimes it happens that clients apply for an insurance form, but suddenly realize that they are overpaying too much. In this case, they can actually issue a refund of the mortgage policy they received. However, it must be borne in mind that a very short period of time is given for this. Usually it is no more than a few days. More precise deadlines can be found in the contract; they must be specified there.
It is also worth paying attention to the clauses in the contract that relate to the calculation of insurance and the possibility of a refund. The insurance company has the right to draw up an agreement at its own discretion, so there may well be clauses according to which the client does not have the right to count on any compensation. The manager should also be attentive once again.
Only military personnel can refuse an insurance policy without any consequences, since their life and health are already insured by their occupation.
In what cases can the insurance company refuse to pay?
As mentioned earlier, before signing the contract, it needs to be studied in detail. The terms of payment must be spelled out in detail. At the same time, it is important to ensure that the amount of the amount that will be paid upon the occurrence of a particular insured event is indicated.
The contract specifies the responsibilities of the policyholder and the insurer itself. This is very important, because if some nuances were not indicated in the papers, then in this case the company can very easily refuse payments.
As a rule, to receive compensation it is necessary to collect the necessary documents. This responsibility falls on the policyholder. The insurance company has the right to refuse payment if an incident occurs that cannot be classified as an insured event.
Insured Event on Mortgage Property, What to Do?
The specific course of action depends on the current situation. However, in general terms, the instructions are the same for all companies. In the event of an insured event, you should:
- Call the competent authorities to solve the problem and record what happened (fire department, police, ambulance, depending on what happened).
- After eliminating the danger, contact an insurance employee. You can find the number in the policy. He will indicate what to do next.
- As a rule, the next step is to collect documents (including those that confirm what happened) and submit them to the insurer’s office along with an application for compensation.
The Investigative Committee will make a decision on the application within a few days. Nothing more is required from the borrower. If the insured event falls under the terms of the contract, the insurance company will transfer the funds to the account of the banking organization and, accordingly, will cover the remaining loan amount at its own expense.
It is prohibited to independently take any actions related to the elimination of a dangerous situation (except in extreme cases). Also, do not move damaged objects. An insurance specialist may have to conduct a personal examination to analyze the situation. The exception is if such things pose a potential threat to the lives of citizens.
Sberbank
In this credit institution you can not only get a fairly decent amount of money to purchase a new living space, they also issue insurance policies. In this case, any bank client who has taken out a mortgage in the amount of up to 11 million rubles has the right to receive documents.
If we talk about the amount of payment for life and health insurance for a mortgage in Sberbank, then the contribution is 130 thousand rubles. However, everything again depends on the individual parameters of the borrower. It is also worth considering other organizations that provide similar programs.
"VTB 24": life and health insurance on mortgage
This bank also provides its clients with the opportunity to take out a policy immediately upon receipt of funds. However, in this case, the conditions will be much more favorable than in Sberbank. In this case, a client who takes out life and health insurance for a mortgage at VTB will have to pay about 0.21% of the total cost of the selected home. However, the majority of citizens of the Russian Federation still prefer to contact insurance companies, which have been on the market for a long time and during this time have collected a huge number of positive reviews. It is worth considering them in more detail.
Reviews
Probably, not everyone reads our portal, hence the reviews containing completely banal questions about the compulsory nature of insurance.
Some citizens simply write reviews with information that is obvious to everyone - about increasing the loan rate if they refuse life insurance.
There are also more meaningful responses. For example, about how you sometimes have to stand in long lines to get a policy.
And some forum users write that life insurance is a very useful thing, and give useful recommendations to other people.
So, when taking out a mortgage, you must insure the collateral. Insurance of one’s life and health cannot be entrusted to an individual by law (Part 2 of Article 935 of the Civil Code of the Russian Federation).
Next, read about where it is more profitable to obtain comprehensive mortgage insurance in 2020.
The article discusses typical situations - to quickly resolve individual cases, it is better to consult with a professional lawyer (chat in the lower right corner of the screen).
And after the consultation, it would be nice to like and share our useful material with your friends on VK, OK, Twitter, Telegram or Facebook.
Read more about other types of mortgage insurance (title and apartment).
Comments: 50
Content:
- Where can I get mortgage life insurance? (accreditation)
- What determines insurance rates? Why might it become more expensive?
- 5 tips - How to save money on health insurance?
- Online mortgage insurance calculator (instant calculation without SMS/registration)
- Rating of life insurance companies for mortgages. Calculation using an example. Comparison table.
- TOP 10. Review of companies: pros and cons (Sberbank Insurance, SOGAZ, Ingosstrakh, VTB, RESO, Alfa, VSK, Renaissance, Rosgosstrakh, Zetta).
Sogaz: life and health insurance for mortgages
The main advantage of this organization is that customers can contact not only the company’s branch, but also receive money through the official website. As a rule, after submitting a request, the organization’s manager calls the user back and discusses the terms.
Another important point in taking out life and health insurance for a mortgage at Sogaz is that in this case, a medical examination, which is a prerequisite, is absolutely free.
If we talk about the cost of insurance, it will be 0.17% when it comes to the life of the borrower. There is also a very interesting service. It's called "borrower liability insurance." In case of non-repayment of the loan, the overpayment for the certificate is 1.17% of the total price of the apartment. However, it is worth checking the final cost of the documents with an employee of the organization, since everything depends on the specific bank, the loan amount and the repayment period.
"RESO"
In this case, we are talking about comprehensive insurance, which includes life, health and much more. In addition, the client of the insurance company will be protected in the event of loss of working capacity or disability. Thanks to this, life and health insurance for mortgages at RESO has a great advantage and benefit for borrowers.
In the event of disability, illness or death of the client, the company independently pays the bank the balance of the debt. The borrower's heir will also not have to worry about debts. In addition, such package insurance includes protection of the purchased property. At RESO you can issue a certificate according to personal conditions. This is very convenient, since each person may have different situations in life.
However, this insurance company is far from the only one where you can get such paper for a bank. Let's consider other options.
"Renaissance"
The main activity of this insurance company is the issuance of policies on the life and property of borrowers. In addition to the main insured events, the client also has the right to indicate his own versions of what may happen to himself or his property.
If we talk about the cost of obtaining life and health insurance on a mortgage at Renaissance, then in this case the amount is calculated exclusively individually based on the specific data of a particular client. However, the minimum cost of issuing the form will be 2.5 thousand rubles.
Where is the cheapest life insurance when taking out a mortgage?
The cost of life insurance in different insurance companies varies between 0.3-1.5% of the loan amount. You can pay for everything at once or make payments annually in equal installments. With the second option, payments are reduced annually in proportion to the loan balance. This allows you to save on the amount of life insurance payments if you repay the loan early.
Remember that comprehensive insurance from any company will be cheaper. The list of the most popular insurers whose life insurance will cost the client less is as follows:
- Rosgosstrakh;
- ROSNO;
- Ingosstrakh;
- Absolute;
- Helios;
- Adonis;
- RESO;
- SOGAZ;
- AlfaStrakhovanie;
- RosselkhozbankInsurance;
- VTB Insurance;
- Absolute;
- UralsibInsurance, etc.
How much does it cost at Sberbank?
To the question: “How much does life insurance cost to get a mortgage from Sberbank?” — the accredited insurance company Sberbank Insurance gives the answer. So the cost of the policy is calculated based on the borrower’s accreditation and the mortgage loan program - on average 1% of the amount. However, the client has the right to choose a favorable offer, take out a policy and insure his life and property in any accredited insurance company, where the procedure will cost him less.
"Ingosstrakh"
This company is one of the five best insurers in the Russian Federation. Here you can get a fairly cheap mortgage life insurance policy. If the loan amount is no more than 11 million rubles, then you will need to pay about 16.5 thousand rubles for ordering an insurance form and customer service. Thus, at Ingosstrakh, life and health insurance for a mortgage will cost approximately 0.22% of the total cost of the selected home. These are more than favorable conditions for clients who want to reduce the interest rate on a general loan.
Why do you need mortgage insurance?
There are different types of mortgage insurance programs. Each bank independently determines what risks it will insure. As a rule, the borrower must insure against:
- Financial losses. In the event of job loss and insolvency, the insurance company must pay the loan instead of the borrower.
- Natural disasters. For example, the home was flooded or damaged by fire. And this is due to natural disasters.
- Unforeseen situations. The property burned down or was flooded by the upstairs neighbor.
The insurance is paid to the bank in favor of the loan. That is, the borrower does not have to pay fees for lost housing.
Insurance companies also offer to insure clients in case of loss of title. This situation occurs when the former owner of the property has regained ownership. As a result, the bank lost the collateral. The insurance company pays the bank the value of the property. The borrower is exempt from payments.
The insurance contract under the mortgage lending program does not cover all insured events. They can be additionally added to it to be insured against all cases. This type of insurance costs more.
You can insure the borrower's civil liability. For example, he flooded his neighbors' apartment. The insurance company will pay for damage caused by the borrower. Insured events for which insurance will be paid are specified in the contract. You need to read them carefully.
"Rosgosstrakh"
This insurance organization is also very popular among the population. She offers very low rates. If the home is insured by the insurance company under a comprehensive program, then in this case the cost of the certificate will be no more than 0.2% of the total cost. However, in this case, the bank where the mortgage was issued will necessarily be considered. The size of the loan, interest rates, type of property and much more are also taken into account. All borrowers must undergo a detailed background check.
However, at Rosgosstrakh, life and health insurance for a mortgage is quite cheap, so you should definitely consider this organization.
