Rules and recommendations for life insurance when applying for a mortgage loan at Sberbank. Why do you need mortgage insurance: features of mortgage loan insurance, types of insurance, top insurance companies Borrower life insurance for a mortgage

Due to the high prices for residential premises in the real estate market, the population has to resort to credit obligations. The most suitable product offered by the bank is mortgage lending, for which it is necessary to carry out life insurance on the mortgage. This procedure is mandatory, it consists of many important nuances.

Any banking organization puts forward a number of requirements for the safe conduct of a transaction and repayment of the issued loan. Mortgage dictates issuance Money on long time and at a low interest rate.

During the years of repayment with the client, any unpleasant situation that could lead to harm to health is acceptable, for example:

disability of the first or second group;
untimely death.

In addition, the collateral is at risk of partial or complete destruction, especially when housing is purchased on the secondary market. Therefore, for safety, according to Federal law“On mortgage insurance”, the object for which the mortgage was issued is mandatory for insurance.

By increasing the loan term, more insurance is realized. According to the content of the articles of the law, it is unacceptable to force the borrower to carry out life and health insurance on a mortgage, however, taking advantage of this right, banks put forward excessive demands, especially in terms of increasing interest on the loan.

Not a single person has information about what awaits him in the near future, so a certificate will help to avoid further costs. Having insurance, borrowers may not be afraid of being laid off or suffering in an accident, especially in terms of repayment of the mortgage. Because insurance companies will pay the loan towards the insurance premium. When an accident results in death, the loan is fully repaid and the property is transferred to the relatives of the deceased.

It turns out that within the framework of mortgage insurance, three directions are being promoted:

Home insurance. Refers to a mandatory type of mortgage insurance and is provided in case of explosion, flood, fire, inundation, actions of third parties and much more.
Title insurance issued for a period of three years. This type protects the borrower from possible attacks from the former owner who has been declared incompetent, or in the event of hidden encumbrances being discovered. Most often, this paper is required when purchasing housing on the secondary market or when there are several transactions with property.
Life and health insurance provided in the event of a fatal accident or loss of ability to work or disability.

Within the framework of a fixed order, each investigative committee carries out actions aimed at clarifying the details of the case and precisely regulating the circumstances that will classify the accident as such. When recognition is legalized, the company is obliged to repay the borrower's debt to the bank. The repayment transfer amount or the insurance amount is equal to the amount of debt to the bank.

Insured events that will not be indemnified include death from suicide, alcoholism, drug addiction, AIDS and other actions aimed at fraudulently obtaining compensation.

The package of documents for insurance has a short list, especially if the insurance takes place at the bank branch where the loan is issued. Then you only need to have your passport with you.

In addition, you may need a questionnaire with the client’s personal data, which will serve as material for calculating insurance. Numerous Features appearance or bad habits are also taken into account.

To obtain insurance, the insurance company provides a package of documents that differ depending on the outcome of the accident.

In the event of the death of the borrower, relatives must provide:

Death certificate.
Certificate of cause of death.
Certificate-extract from the medical record.
In the event of an accident at the workplace, an accident report is generated.
A paper confirming the occurrence of an insured event (issued only by competent authorities).

This is a mandatory list of papers.

In cases that cause loss of ability to work, the following documents are provided:

Certificate-extract from the medical record.
Certificate of diagnosis describing the causes of disability.
Certificate confirming the fact that the disability group has been established.
A document confirming the establishment of a disability pension.

Despite the gravity of the incident, it is necessary to meet the deadlines prescribed for submitting documents. Otherwise, insurance may be denied.

Obtaining a certificate is not difficult at all, for this you need:

fill out the form;
formulate a statement;
submit to the insurance company for review.

A prerequisite for filling out papers is the accuracy of the entered data, which is verified through documents attached to the application or through other legal means. Deception or fraud, as well as concealment of correct information, may serve as a refusal from the company.

How insurance is calculated

The age of the borrower is included in the insurance calculation when receiving the certificate. When the borrower is no longer young, the commission increases. It happens that some companies put forward requirements for medical examination for chronic diseases or other diseases that increase the risk of unexpected illnesses or accidents.

According to statistics, men live less, so larger amounts are billed to the stronger sex.

Of course, companies also pay attention to the client’s place of work, because if the production is harmful and hazardous to health, then the risk of diseases and injuries incompatible with life increases, this can serve to increase the commission paid.

I would like to note that:

banal bad habits;
smoking;
binge;
also overweight

will become a factor stimulating the manager to increase the insurance component.

The main indicator that affects the amount of insurance is the term of mortgage repayment and its amount.

Managers, finding out how much mortgage life insurance costs for a particular client, sum up all its components and obtain the final insurance ratio required for payment.

There is no information about the most profitable bank, so it is not possible to answer accurately, since each credit institution has its own advantages. However, it is worth noting the leading financial organization called Sberbank.

This bank invites its borrowers to contact not only the organization’s accredited partners, but also other companies operating in the market. More often, managers suggest using insurance within Sberbank itself. This is quite convenient; there are no excessive requirements for the client and the amount billed for payment.

A new company in the mortgage life and health insurance market is VTB24. Due to the lack of a large number of reviews, citizens are afraid to contact this bank, but it is typical to deposit 0.21% of the total cost of the selected housing, which is less than in Sberbank.

In SOGAZ, carrying out insurance requires a mandatory commission, which is paid by the company itself. A client of a real insurance company may not contact the branch to receive monetary compensation, but simply request it through the official website, leaving a request, which will be contacted by a manager to clarify the details.

One of the best insurers in the territory Russian Federation is Ingosstrakh. Clients choose their current company because of its low-cost mortgage life insurance policy. The approximate standard for the insurance premium is 0.22% of the total cost of the selected home.

These companies are not the only ones on the market, but they have lower tariffs. It is being discussed on the Internet that employees of Sberbank of Russia urge or even insist on obtaining a certificate from their insurance company. When the borrower does not want to use this insurance company, it is enough to draw the employee’s attention to the fact that on the official website of Sberbank there is information that health and life insurance is possible in any insurance company that meets the requirements of the credit institution.

On the website of all insurance companies, when finding out about life insurance for a mortgage, a calculator is available that performs online payment interest rates (usually from 0.5 to 2.5% of the remaining mortgage debt). It is recommended to use the functionality only for clarity, since the electronic version cannot take into account the individual parameters of the client, therefore, for an accurate rate, it is recommended to contact the organization in person.

TO As discussed above, insurance is available for refusal, but as a result the bank reserves the right to increase the lending rate.

Of the popular credit institutions, there is the following trend towards increasing interest rates:

Sberbank – 1%;
Delta credit – 1%;
VTB24 – 1%;
Bank of Moscow – 1%;
Rosselkhozbank – 3.5%.

There is no right of choice in relation to the insurance of a property subject to collateral. The bank must have money return guarantees in case of damage to the property.

The insurance covers any adverse events not related to fraud, as a result of which it is impossible to make monthly payments and pay off the debt. After an untimely death, relatives will not have to take on the obligation to repay the loan, since the borrower has insured himself in the event of death, temporary disability or disability of groups 1 and 2.

There are many disagreements regarding the return of insurance funds and conflict situations, this is due to the fact that the borrower does not promptly pay attention to the clauses of the contract indicating the possibility of returning the funds paid under any conditions. When the signed agreement does not regulate the refusal to return funds for any reason, it is possible to return the amount, especially if this happened no more than 10 days after signing the papers.

Refund of the insurance is also possible in case of partial or full early repayment of the loan.

IN in this case company:

Performs recalculation.
Returns funds to the client's specified bank account.

But again, unless other circumstances are specified in the contract. For example, the Bank of Moscow clearly states in its contract that the insurance amount taken for the entire insurance period is not returned in case of early repayment. Possible Solution doesn't always work through the courts positive results, but in practice there are cases when the client still manages to return the overpaid insurance amount.

When the contract does not contain any information about the return of the insurance premium, an appeal is drawn up addressed to the manager. The document must contain a request to recalculate the amount of insurance payments made and remaining and the number of the current account to which the amount will be transferred upon making a positive decision.

The reliability of the early closure of the mortgage will be confirmed by a certificate from the bank demonstrating full repayment of the mortgage and the absence of financial obligations. The paper is attached as an appendix to the completed application.

Without any consequences, the right of refusal is used by the military, since their life is insured according to the type of activity and is not mandatory in credit organization.

Main advantages and disadvantages

Having studied all aspects of insurance, we can note the following disadvantages of the operation:

Significant cost of the certificate.
Registration of title for a period of 3 years.
When calculating insurance for the collateral, the amount is included in the loan amount and is spread over months.
Increasing the cost of housing due to insurance payments.
If the borrower refuses life and health insurance, additional payments are imposed or the mortgage rate increases.

Some of the listed inconveniences for individuals may be a deciding factor when taking out insurance.

The advantages include:

Protection of the borrower and the banking organization from unforeseen life situations associated with tragic death or disability.
Relatives of the insured do not have to worry about repaying the loan loved one, because the Insurance Company pays the debt herself.
Mortgage repayment is possible if you have health problems.
The risk of losing purchased real estate is reduced.
The borrower can independently choose the desired insurance company, based on acceptable conditions and interest rates.

However, the listed positive sides can make a skeptic change his mind and still insure his life.

Banks, when providing a loan to purchase real estate, not only issue a mortgage on it, but also require mortgage insurance. Purchasing a property insurance policy is a requirement of any mortgage agreement. What about other types of insurance?

General understanding of what mortgage insurance is

Mortgage insurance is a set of types of insurance that are designed to protect the financial interests of each participant in residential mortgage lending.

The need to conclude such agreements is due to the need:

bank - in obtaining loan repayment guarantees, which allows reducing interest rate and increase the loan term relative to consumer loans;
client - in receipt financial security the possibility of fulfilling one’s obligations in the event of death, disability, reduction in income, and other things.

The main purpose of mortgage insurance is to redistribute risks between insurers, borrowers and lenders in order to increase the reliability of the mortgage insurance system.

Types of mortgage insurance:

insurance of property under a mortgage, which according to the agreement was pledged, against the risks of loss or damage;
personal, which is life and disability insurance of the client (borrower or co-borrower);
title is insurance against loss of title to collateral as a result of termination of ownership.

As additional option Insurers offer to insure the civil liability of the premises owner against:

by third parties during the operation of the property (for example, from cases of flooding of a neighbor’s apartment);
by the creditor for failure to fulfill accepted financial obligations (if there is a delay, if it is impossible to make payments in the future).

Features of this type of insurance

Mortgage risk insurance differs in that the beneficiary under the contract is the lender (bank). In the event of an insured event, the insurer will make an insurance payment in his favor. Its size cannot exceed both the amount of the outstanding debt and the amount of damage incurred.

There is a scheme for paying the insured amount in a lump sum - immediately - upon concluding an agreement for the entire loan term. A more common scheme is the annual payment of the insurance amount.

Do I need to insure my apartment every year if I have a mortgage? Yes. This is specified in the loan agreement.

Legality of requirements for concluding insurance contracts

Real estate insurance for a mortgage: mandatory or not – debates have been going on for a long time, but there is a law and there is judicial practice.

According to Federal Law No. 102-FZ “On Mortgages,” mortgage borrowers are required to insure the collateral. The document does not say anything about other types of insurance.

Personal insurance for mortgage Art. 935 of the Civil Code of the Russian Federation is defined as voluntary. However, banks strongly recommend that their clients take out such insurance. It is optional, but its absence will lead to an increase in the loan rate by at least 1%.

A similar situation has developed with regard to title insurance. The client has the right to refuse, but the loan, since it is riskier from the lender’s point of view, will be offered to him on other, less favorable terms than to those borrowers who agreed to fulfill the bank’s requirements.

Judicial practice in relation to such disputes indicates that in most cases the requirement to conclude a life and health insurance contract is recognized as an abuse of freedom of contract, since they refused to issue a loan without obtaining insurance.

According to the Directives of the Central Bank of the Russian Federation dated November 20, 2015 No. 3854-U, the borrower has the right to refuse the insurance product imposed on him within 5 days from the moment of signing the relevant documents. The amount paid by him must be returned in full.

However, the Central Bank of the Russian Federation explained that if the borrower refuses this service, the lender has the right to change the terms of the standard agreement and increase the interest rate.

This clause is already included in most mortgage agreements. Lenders also widely use their right to terminate the mortgage agreement unilaterally due to the client’s failure to comply with its terms. This provision is also stated in the loan documentation. The bank sends a notice to the client requiring him to either take out insurance, or he will terminate the contract. The latter means that the borrower is obliged to repay the entire loan amount or face legal proceedings.

Citizens' appeals (usually during legal proceedings) to the fact that the requirement for insurance violates their rights are not accepted: the agreement was concluded under certain circumstances, about which the client was warned in advance.

Signing the documents means agreement with the fulfillment of the requirements established by them.

Typical insurance cases

Insurance of a real estate property typically assumes as an insured event:

fire, including one that occurred outside the insured property;
household gas explosion;
disaster;
flooding that occurred as a result of an accident in the water supply, sewerage or heating system, even if the water came from neighboring premises;
illegal actions of third parties (hooliganism, robbery, vandalism);
falling of aircraft (parts thereof) onto real estate;
identification of structural defects in the structure, which were unknown to the policyholder at the time of concluding the contract.

You need to be prepared for the fact that the minimum package offered by insurers provides for payments only when the insured property has suffered significant damage.

For example, if your neighbors' wallpaper was damaged as a result of a flood, there will be no payment, but if someone breaks a window, you can count on compensation for its cost. The entire loan balance will be paid only when the object is completely destroyed. In the case of a private house, if the foundation remains, then only part of the debt will be repaid, because, from the insurer’s point of view, the rest of the building can still be used to build new housing.

To get more guarantees and more compensation, you should take out more extended insurance, but it will cost more.

The next type of mortgage insurance is life and health insurance of the borrower. Insured events under such a contract are:

death of the insured due to an accident or illness that occurred during the period of validity of the contract;
loss of ability to work as a result of illness or accident with the assignment of 1 or 2 disability groups.

What is title insurance for a mortgage is easier to understand from the list of insured events under the following contracts:

recognition of the sale and purchase as invalid (based on clause 2 of Chapter 9 of the Civil Code of the Russian Federation);
demand from the buyer of housing (in whole or in part) by persons who retain ownership of the property.

This type of insurance is designed to protect the rights of a bona fide purchaser. Confirmation of the occurrence of an insured event will be a court decision. Payments under such agreements should compensate the borrower’s financial costs and guarantee the lender’s repayment of the loan.

In such cases, the insurance company has the right to provide full legal support, including representation of the client’s interests in court.

The problem of receiving insurance payments

The insurer has the right to refuse to pay insurance compensation in a number of cases. All of them are specified in the insurance contract.

Personal insurance for mortgage lending assumes, as an insured event, the identification of the borrower with the 2nd or 1st disability group or his death. In this case, the payment is made in full as a one-time payment. In the first case, the property remains the property of the borrower, in the second it will be included in the inheritance estate and the heirs will receive it without any encumbrance (without collateral or the obligation to repay the loan debt). But for example, compensation under a life insurance contract will be denied if death occurred as a result of suicide or a car accident in which the policyholder was at fault. They will not pay compensation in cases where the client initially knew about health problems, confirmation of which the insurer will find in his medical records, but did not inform about this when concluding the contract.

There will also be problems with compensation for persons who have suffered from professional risks, as well as for those in whose blood at the time of the insured event alcohol or drugs are found that were not prescribed by a doctor. According to the law, the insurer in such a situation is not obliged to repay the debt.

If life and health insurance was taken out in relation to both spouses-co-borrowers, then in the event of the death of one of them, the debt to the bank will be repaid only by half, i.e. by 50% of the loan balance. If the insurance was made taking into account certain proportions, then the payment will be made taking into account how it was stated in the contract. For example, in the event of the death of one of the spouses, compensation may be 70% of the balance, while in the event of the death of the other - 30%.

In cases where there is no firm certainty that the insurance company’s refusal is correct, it is worth contacting a lawyer specializing in this area.

Already at the first consultation, having studied all the documentation, the specialist will be able to confirm or refute the legality of the insurer’s actions and suggest the advisability of protecting their interests in court.

How to save on mortgage insurance

The insurance program offered by the lender's employees is, as a rule, a product that is unprofitable for borrowers. Most banks act as intermediaries between the true policyholder, the organization with which the contract is actually concluded and which will subsequently make insurance payments if necessary, and the client. Accordingly, the lender most likely receives a discount from the “supplier” and at the same time makes an allowance to cover its own costs.

As a result, an insurance contract concluded in a bank office may turn out to be 10-20% more expensive than an agreement drawn up on the same terms either with the insurer itself or with its other official partner.

If you decide to purchase insurance directly from the insurer, check with the lender for a list of accredited companies. Despite the fact that any restrictions on the choice of insurance company are unacceptable by law, they can be established in spite of them. Therefore, it is still wiser to check with the bank for a list of accredited insurers.

Considering that the insured amount is calculated based on the loan balance plus interest that will be accrued over the next year, savings are possible due to early repayment of the loan.

The faster the mortgage debt is repaid, the less interest the borrower will pay, the less the insurance amount will be.

You should also consider the loan repayment date. Ideally, you need to determine the deadline for full repayment of the loan by the time the next insurance contract expires. If this does not work out, then you can, by obtaining a corresponding certificate from the creditor about the absence of debt, contact the insurer with a request to return part of the insured amount according to the actual time of existence of the loan obligation (debt to the bank).

How to properly insure yourself with a mortgage so as not to overpay. When determining the sum insured, insurers take into account:

client's age. The policy will be cheaper for people who are 25-35 years old;
the price of the property - the more expensive it is, the more the insurer needs to pay;
with personal insurance, they may be asked to undergo a medical examination, based on the results of which the cost of the policy will be determined. The fewer health problems a person has, the fewer bad habits he has, the greater the discount he will be given;
The larger the loan amount, the larger the insurance amount will be assigned for payment.

Summary

Mortgage insurance: required or not? An insurance contract for collateral property is required. The rest - formally no; in fact, the bank indirectly (through deterioration of lending conditions or even refusal to conclude a mortgage agreement) forces clients to agree to this requirement.

From a financial point of view, sometimes it is a little more profitable to agree to an increase in the loan rate, but refuse additional insurance.

Interest is accrued regularly on the debt balance, which decreases as payments are received to repay the loan, i.e. monthly or even more often. When determining the insured amount, the amount fixed at the beginning of the year is taken into account.

A reasonable solution to this issue is to comply with the lender’s request, but enter into a mortgage insurance contract directly with the insurance company.

The benefit of the borrower with mortgage insurance is that if an insured event occurs, although the bank will receive the payment, the citizen will be released (partially or completely) from the obligation to pay the mortgage.

IN Hard times, which are designated in insurance as insured events (loss of property, disability, etc.), this can come in very handy.

Considering the above, we can say that a mortgage is risky project for the borrower and the insurer. The bank, if it has a full package of insurance and collateral, risks less.

In the last decades of the last century, almost every Soviet (Russian) family had a life insurance policy. But the collapse of the economy in 1991 turned contracts with State Insurance into paperwork and discouraged the population from giving money to insurers. The massive return of services to the financial market is associated with compulsory types of insurance (insurance for credit cars or mortgages). However, according to housing loans not everything is clear.

The Federal Law “On Mortgages (Pledge of Real Estate)” dated June 16, 1998 No. 102 obliges the insurance of only collateralized property. The bank also requires additional life insurance for a mortgage, and in some situations, a policy in case of loss of property rights. Is it worth agreeing to the requirements and how much will they cost?

When is a mortgage insurance policy required for the borrower?

As a rule, insurance includes three types:

How much will “triple” peace of mind cost the client?

Life and health insurance will cost 1%.

Property insurance - from 0.1 to 0.25% and Title insurance - from 0.5% to 5%.

If you insure all three objects, and not the mandatory minimum, concluding a comprehensive contract with one insurer will cost less than separate insurance documents for each type.

The insured amount is equal to the loan amount increased by 10%. The premium payable to the insurer is calculated by multiplying the sum insured by the tariff.

So, the title is only needed for the secondary market. Should you give up life insurance? Banks have come up with an “antidote” for those who want to save money on this procedure: they estimate the increase in their risks at 1-2%. The rate for unprotected borrowers rises from 11%-12% to 13%-14%.

Which option will allow you not to overpay?

The table shows that there is no savings when refusing insurance. Considering that the policy provides financial protection, you should not refuse it. It is important to choose a company wisely and delve into all the details of the conditions.

Life insurance: what does the contract protect against?

The policy guarantees financial protection against one of the following events:

1.Death of the borrower from:

accident
a disease that was not known at the time the insurance was taken out.

2.Recognition as a disabled person with complete loss of ability to work.

3.Temporary disability (for more than 30 days).

It is important to immediately notify the lender and insurer of the occurrence of one of the events and not stop repaying the mortgage until the documents necessary for payment have been collected. In the first two situations, the insurer will fully compensate the bank for the amount of debt, and the encumbrance on the apartment will be removed. In the latter case, compensation is calculated as the product of the actual period of incapacity for work and the monthly payment divided by 30.

If the risk package as a whole is the same among insurers, then the list of exclusions varies. This should be kept in mind when choosing an insurance company.

Before applying for a policy, you need not only to familiarize yourself with its basic conditions, but also to study the Insurance Rules.

Refunds may be denied if:

loss of ability to work or death occurred as a result of the borrower’s deliberate actions aimed at causing serious injury to himself.
The cause of the event was the use of alcohol and drugs.
the event was accompanied by criminal actions of the borrower, falling under the jurisdiction of the Criminal Code.
The cause of the event was drunk driving or “handing over the steering wheel” of your car to another drunk driver.
there was a suicide (suicide attempt) of the borrower in the first two years.

These circumstances must be proven by employees of the insurance company. The payment case will definitely stall during the criminal proceedings, if one happens.

It is theoretically possible to change the standard terms of the contract, but large insurers are unlikely to do this for the sake of one new policyholder. That's why careful selection the client will have to do it himself.

When choosing an insurance company, you need to pay attention to its reputation, availability of a license for this type, real reviews about payments. Not the least factor will be the price of insurance services.

What affects the price of insurance

Perhaps before signing the contract, the client will not only be asked to fill out a detailed questionnaire about himself, but will also be asked to undergo a medical examination.

The results will certainly affect the insurance rate, but in addition to medical nuances, there are related circumstances that affect the price.

Personal data	Related factors
Gender (rate for men is higher) Age (the older the client, the higher the rate) Chronic diseases Early death of close relatives due to illness Imperfect height/weight ratio Frequent sick leave recently Dangerous profession Extreme hobby	Loan size Availability of commissions from the intermediary A small number of clients for this type of insurance in the company (the logic of accumulation of insurance reserves does not allow reducing prices if this type is not widespread for the company) Availability of other insurances in this company (loyal customers are rewarded with discounts)

If you have CASCO, OSAGO, VHI, check with your agent to see if the company can provide special conditions under a life insurance policy for a regular client.

Life and health insurance for a mortgage is provided for the entire loan period. But dues are paid once a year. Before payment, you should ask the bank for information about the balance of the debt (sometimes this is done by the insurer itself) so that the agent can recalculate the insurance premium. Despite the reduction in the insured amount (the “body” of the loan), a reduction in the financial burden should not be expected due to the increase in tariffs caused by the increase in the age of the borrower.

But if the client got rid of excess weight or exchanged dangerous work for an office routine, you should inform the insurer about this. A recalculation will be made, a new schedule of insurance payments will be drawn up in an additional agreement to the contract. It is not wise to mislead the insurer about your health status in order to save several hundred rubles.

Such actions will lead to serious consequences if the deception is discovered. The companies have a staff of lawyers, medical experts and a security service designed to prevent unreasonable payments.

Video. Mortgage insurance

Pitfalls of insurance payments

Surprises for the client (heirs) when paying insurance compensation include:

It can be a consolation that the loan agreement also provides for the release of the parties from obligations in the event of force majeure circumstances.

How to draw up a contract and whether it can be terminated

To obtain insurance you will need:

identification;
a copy of the mortgage agreement and loan agreement with the current debt balance;
in some cases, the results of a medical examination and a certificate from a psychiatrist.

You can apply for a policy:

from your agent
at the insurance broker's office
in an accredited insurance company
from an affiliated insurer

The last method is the fastest, but the first will be the most economical. Tariffs from “pocket” insurance companies or official partners are the highest. They include the bank's commission for providing a client, the costs of conducting business (including salaries) of a broker, and an insurer. But if you couldn’t resist the pressure of the loan officer, it is important to know that the client has the right to terminate the policy and sign it with the company where the price and conditions are more attractive. The bank's refusal to accept this document will be illegal.

Important: for a year now it has been possible to return money for imposed insurance in the first five days if an insured event has not occurred (Instruction of the Central Bank of the Russian Federation dated November 20, 2015 No. 3854-U) - the so-called “cooling period”. The rule applies to mortgage insurance.

You can renew your contract with an alternative insurance company at any time. It is convenient to do this before paying the next premium, having decided in advance on the choice of a new insurer. It is impossible not to renew the policy at all: the agreement with the bank provides for strict sanctions, from increasing the loan rate to the requirement to repay the debt in full as soon as possible. Results: refuse voluntary insurance Life is not worth living with a mortgage.

The policy will not only save 10-20 thousand annually, but will also provide financial protection for the borrower’s family in the event of unforeseen circumstances. It is for this reason that you need to choose a reliable insurer and, before signing, slowly study the terms of the contract.

Video. Mortgage insurance. We minimize costs

Reading time: 8 min

There is no fixed cost of an insurance policy, since it largely depends on the conditions of a particular bank and the characteristics of the borrower himself. In particular, the factors that influence this are:

Features of the mortgaged object (i.e. apartment or). For example, the cost of the policy may increase significantly if the home is located in a dangerous area. Title insurance (that is, ownership rights) will also cost more if the property is purchased on the secondary market.
Borrower characteristics. In particular, his age and field of activity are taken into account. For example, for a young office employee the cost may be minimal, but for a construction or manufacturing worker it can be significantly higher. This is due to the fact that the insurance company seeks to compensate for possible risks.

The cost of insurance is tied to the loan amount and is set in the form of an interest rate.

Most often it ranges from 0.5 to 1.5% of the entire mortgage amount annually.

Receiving compensation in case of an insured event

Upon the occurrence of an insured event, the client (in the event of his death - the heir or ) must contact the insurance company and provide copies of supporting documents. This could be medical certificates, doctors' reports or a death certificate. It is also worth informing the bank about possible payment delays and their reason.

After receiving the documents, the insurance company examines them and makes a conclusion about whether an insured event occurred, and also determines the amount of compensation due to the client.

It is possible that the amount issued will not be enough to pay off the debt - in this case, part of the funds will have to be repaid by the borrower himself.

If the insurance company refuses to pay compensation at all, it is worth informing the bank about this. Since the lender has a direct interest in the recovery of funds, it may conduct its own investigation. There are often cases when after this the policyholder is still forced to pay compensation.

Pitfalls when taking out insurance

The main risk that a borrower bears when signing a life insurance policy is the inclusion in the contract of provisions that are disadvantageous to him. For example, many companies indicate that if the client has chronic diseases, HIV infection or hepatitis, insurance payment will not be made. The list of such restrictions may be more extensive.

As a result, it may turn out that obtaining compensation in practice is generally impossible.

Such a policy is beneficial only to the policyholder and is of no value to the client or bank. Therefore, it is the interested parties who must control the contents of the contract with the insurance company and, if necessary, insist on changing its terms.

Is it possible to refuse?

In some cases, the borrower may cancel the life insurance contract during the term of the loan agreement (usually its term is renewed annually). However, in this case, he must be prepared for the fact that the bank may demand immediate and full repayment of the remaining amount of the debt.

In addition to refusal, the borrower can change the insurance company by concluding an agreement with another policyholder. But even in this case, the bank must be informed, without whose consent this is impossible.

It is worth considering that banks do not accept policies from all companies - it must be large and be able to reimburse a significant amount of funds for its client.

In any case, specific conditions regarding a change in the policyholder or a complete cancellation of the policy are contained in the loan agreement. Therefore, at the time of signing the document, all these issues must be studied and agreed upon.

Conditions for insurance from banks

Almost all large banks that issue mortgage loans have agreements concluded with insurance companies on issuing their policies to clients. You can consider the conditions of these policies using the example of market leaders:

Sberbank

Cooperates with several insurance companies and gives the client the right to choose any of them. In this case, the insurance risks are:

death of the borrower (as a result of illness or accident);
loss of ability to work and assignment of I-II disability groups.

The insurance rate depends on certain conditions that the client can determine himself, and ranges from 1.99 to 2.99% of the amount of loan funds issued. Maximum size The liability borne by the insurance company is equal to the balance of the client's debt at the time of the insured event.

VTB 24

Issues a comprehensive insurance policy, which, among other things, includes risks regarding the life and health of the borrower. This lender's insured events are the same as in Sberbank. The cost of all comprehensive insurance is, on average, 1% of the loan amount for one year of the transaction.

For most borrowers, life insurance is an unnecessary service that is imposed by the bank and only requires additional expenses. However, in some cases, its presence allows you to obtain funds to fulfill your debt obligations, as well as relieve heirs or co-borrowers from the need to repay someone else’s loan.

Welcome! The topic of our meeting today is mortgage life insurance. From this post you will learn about whether or not you need to take out life and health insurance if you have a mortgage. Is it necessary to take out life insurance on your mortgage if you already have a life insurance policy? What sanctions are provided for you if you refuse it? Conditions and offers of insurance companies for this product.

Mortgage insurance is a standard banking requirement when obtaining a mortgage. According to the Federal Law “On Mortgage”, only insurance of collateralized real estate is mandatory - this ensures the financial security of both the bank and the borrower in the event of force majeure or other circumstances. But banks often offer, and sometimes even impose, so-called comprehensive mortgage insurance, which includes:

Real estate insurance;
Life and health insurance;
Property rights (title) insurance.

Real estate insurance as collateral

The real estate that you purchase with a mortgage is insured against loss or damage for the entire term of the mortgage loan. Only the real estate itself (structure) is subject to insurance, not including interior decoration. To insure the remaining property, it is necessary to include it in the contract additionally.

When applying for real estate insurance, the SOGAZ Insurance Company offers to take out insurance for an apartment using the product “From Coincidence of Circumstances” for interior decoration, plumbing, appliances and furniture, as well as civil liability for only 1,150 rubles. At the same time, the main product “apartment mortgage insurance” will be subject to a preferential rate - only 0.1% of the insured amount.

Life insurance

This type of insurance involves receiving insurance payments in cases of disability of the borrower, death, injury, serious illness - anything that would entail a violation of payments on the mortgage loan.

Insurance companies can temporarily pay the borrower’s mortgage debt instead, they can issue the insured amount in a lump sum, or they can combine these two options.

The amount of the insured amount is usually equal to the loan debt and decreases along with it. Sometimes the amount even exceeds the size of the entire mortgage loan, but usually no more than 10%.

Title Insurance

Unlike the previous two types of mortgage insurance, you can insure your title to property for no more than three years. This is the maximum “shelf life” of any property rights.

Mortgage title insurance can protect you from losing title to your home. If in the past the apartment you are purchasing with a mortgage had controversial legal issues and any obligations remained on it, then a situation may arise where you will have to defend your ownership of the purchased housing.

For example, possible applicants for the possession of living space may appear - the result of previous transactions on this real estate. Title insurance will reimburse the bank for losses and expenses associated with the loss of your title.

A notable feature of this type of insurance is that you can issue a separate policy in which you insure the ownership of real estate not only in favor of the bank, but also in your favor. This will protect you from possible unpleasant consequences. During the three years during which the insurance policy is valid, any title other than yours will lose its relevance.

According to Russian law, this type of insurance is optional for the borrower when applying for a mortgage. However, the bank may oblige you to insure the title if the legal purity of the apartment purchased with a mortgage raises doubts.

Payment documents

If an insured event occurs, you need to bring the following package of documents to the insurance company:

Application for payment.
Certificate of death indicating the cause (if the death of the borrower occurred).
Documents on the right to inheritance from relatives.
Certificate of disability and documents from a medical institution confirming the fact of an accident or illness resulting in disability.
Documents confirming the fact of disability, indicating the number of days and the connection with the insured event.
Certificate from the bank with the amount to be transferred and details.

Documents on insured event can be submitted through a bank employee. There is no need to stand in queues because, as a rule, there is a dedicated specialist in the overdue department.

It is important to understand that late fees and penalties will not be reimbursed by the insurance company, so you must continue to pay your mortgage according to the payment schedule until the money from the insurance company is transferred.

How much does life insurance cost?

The exact rate and cost of life insurance for the borrower is determined by many factors. First of all, insurance agents look at your age, gender, health status and the size of your mortgage loan. Profession, hobbies and lifestyle are also taken into account. The borrower is provided with a special questionnaire with medical questions.

If the borrower is overweight, the insurance company may refuse insurance or significantly increase the rate. Take this into account when determining who to make the primary mortgage borrower.

It is important to remember that if the information you provide in this form turns out to be false, the insurance contract will be terminated and you will not receive any payments for the insured event.

You should understand that you can insure your life and health both at the bank itself and at the insurance company yourself. At the same time, it is very important to take a list of insurance companies accredited by the bank; everyone has their own. Not all insurance companies can be accredited by the bank, which means that the bank will not accept their policy.

As a rule, insurance directly from a bank is more expensive than from insurance companies. Your insurance company may offer special discounts for you personally based on the results of long-term cooperation within the framework of mortgage or any other insurance.

Life and health insurance for a mortgage is almost always combined with the other two types of insurance. Below are approximate rates.

Important point! For women, the insurance rate is lower, so when insuring a mortgage, it is better to make a woman the main borrower and take out a policy for her. This will allow you to save money.

Online mortgage insurance calculator

To find out the exact cost of a mortgage insurance policy, you should fill out the information in the online calculator on our website. It will allow you to find out the price of the policy taking into account all the main risks: life, apartment structure and title. After calculation, you can apply for a policy online.

What if you refuse mortgage insurance?

Is life insurance required on a mortgage? No, this is a myth: no bank has the right to force this service on you. But, as always, there are pitfalls. Of course, you can refuse insurance, but then your mortgage rate could rise by 3% or more. Agree, you need to do the math before making the final choice.

Very often, military personnel and other borrowers are already insured against the risk of death, disability and loss of the ability to work due to health reasons at work. The question arises whether it is possible to refuse life insurance in this case. The answer is no. The reason is that under this insurance, the money will be received by the borrower or his relatives, and not by the bank, and it is not a fact that this money will be used to pay off the mortgage, which is why banks require that life and health be insured, and that the bank be the beneficiary of the policy.

Here are the approximate sanctions of major mortgage banks for refusing insurance:

Sberbank +1%
VTB24 and Bank of Moscow +1%
Rosselkhozbank +3.5%
Raiffeisenbank + 0.5%
Deltacredit +1%

There are a number of banks that do not require compulsory insurance life. This is an indispensable benefit factor when choosing a bank because... the insurance fee for the entire contract will be quite significant. Banks that do not require compulsory life insurance are Gazprombank, Globex.

If you have done it and closed it completely, then you have the right. To do this, you need to contact the insurance company and write a statement.

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