Mortgage life insurance raises many questions, the main ones being:

1. Is it necessary to register it?
2. Is it necessary to take out life insurance on a mortgage if the borrower already has a life insurance policy?
3. What are the consequences of refusing life insurance when taking out a mortgage?

Let's look at these questions in more detail.

When applying for a mortgage loan, banks apply mortgage insurance. Banks are guided by the Federal Law “On Mortgages,” which states that insurance of collateralized real estate is a mandatory condition for granting a mortgage loan. Such Insurance is used to ensure the financial security of the bank and the borrower in the event of force majeure or other circumstances.

It’s another matter if the bank offers or even imposes some kind of comprehensive mortgage insurance, including real estate insurance; life and health insurance; property rights insurance.

When it comes to real estate insurance, the property is insured as collateral for the entire term of the mortgage.

Mortgage life insurance is a type of insurance service that 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 for the borrower instead mortgage debt, 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.

Real estate insurance is issued for a period of up to 3 years and it allows the bank to compensate for losses and expenses associated with the loss of property rights by the borrower.

It is not optional for the borrower when applying for a mortgage. If the bank tries to oblige you to insure the title, this means that the bank is not confident in the legal purity of the apartment purchased with a mortgage.

Life insurance, in turn, allows you to fully repay the borrower's mortgage debt at the expense of the insurance company. This obligation arises to the insurance company if one of the insured events specified in the policy occurs.

Such risks include risks resulting from illness or accident. This is the death of the insured, disability of groups 1 and 2, temporary disability for a period of more than 30 days.

It is worth noting that non-insurable life insurance events, in the event of which the insurance company will refuse to pay insurance, include: AIDS, suicide, alcohol and drug intoxication, driving without a license, while committing a crime.

If an insured event occurs and if at least one of the listed circumstances is present, the insurance company will refuse to repay the mortgage to the bank, and then the relatives or the borrower himself will be obliged to repay the debt to the bank on their own.

How to recognize a case as insurable with a mortgage?

In order for the insurance company to recognize the case as insured, a number of actions must be taken.

If the death of the borrower occurs, his relatives should contact the insurance company during the validity of the insurance contract, but no later than a year from the moment of the accident or illness that led to the death of the borrower.

If disability occurs, the borrower must contact the insurance company during the insurance period and no later than six months after its expiration.

In case of temporary disability, the borrower contacts the insurance company after 30 days of continuous sick leave.

If an insured event occurs to the borrower and the insurer recognizes it, then he is obliged to repay the borrower's debt to the bank. Sum insured in case of life insurance on a mortgage, it is the amount of debt to the bank. It is this amount that the insurance company will transfer to the bank, with the exception of the risk of temporary disability. There, payment is made upon the fact for each day of incapacity based on the amount of 1/30 of the mortgage payment.

The insurance period is calculated for 12 months. After this period, the borrower must come to the insurance company and renew the insurance for the next year.

What documents are provided to the insurance company for insurance payment?

The package of documents for payment under insurance consists of an Application for payment, Certificate of death indicating the cause, Documents on the right of inheritance from relatives, Certificate of disability and documents from medical institution confirming the fact of an accident or illness with the onset of disability, Documents on incapacity for work indicating the number of days and the connection with the insured event that occurred, Certificates from the bank with the amount of the amount to be transferred and details.

Features of Life Insurance for a Mortgage with State Participation

Banks with state participation, when providing mortgages with state support, usually include a life insurance clause in the loan agreement.

The preferential mortgage rate applies only on the condition that the borrower necessarily insures his life and health. IN otherwise the bank has the right to increase credit rate by 1%.

How to properly insure life and health when applying for a mortgage with Sberbank?

The borrower has the right to insure his life and health in any insurance company accredited by Sberbank. This rule is stated in a separate clause in the loan agreement. There are four such companies, besides Sberbank Insurance: SK LLC VTB Insurance"; JSC "VSK"; LLC "ISK "Euro-Polis"; OJSC "SOGAZ". Their rates are usually lower than the rates at Sberbank Insurance. But, despite the law, Sberbank managers sometimes insist on issuing a policy with their insurance company. In this case potential borrower you need to refer to the website of Sberbank of Russia. It says that you can insure health and life with any insurance company that meets the requirements of a given credit institution.

If you strictly follow the law, then when applying for a mortgage loan at Sberbank, enter into an agreement personal insurance not necessary. Such insurance is voluntary. However, in case of refusal of insurance, Sberbank has the right to increase the mortgage rate by 1 percent. It turns out that voluntary health and life insurance when obtaining a mortgage loan has positive and negative sides. The biggest disadvantage is the total amount of insurance payments under the contract. Considering that premiums must be paid annually, the cost of life insurance for a mortgage with Sberbank is significant, credit programs designed for 30 years, this results in an impressive overpayment. But if you take into account that Sberbank, in the absence of insurance, increases the loan rate by 1%, then there is a reason to insure yourself.

What sanctions do banks apply for refusing insurance?

In such cases, banks increase the interest rate on the loan, for example, Sberbank +1%; Bank of Moscow +1%; VTB24 +1%; Deltacredit +1%. Raiffeisenbank + 0.5%; Rosselkhozbank +3.5%.

How much does life insurance cost?

The cost of the policy directly depends on the organization you purchase it from and the balance of debt, so each time you enter into a new life and health insurance agreement with a mortgage, the amount will be less than the previous one. If the policy was purchased at the office of the insurance company, you will need to take a certificate of the balance of debt in order to correctly calculate the amount of the fee. If you don’t know which company to choose, you can use an online calculator that will help you navigate the existing offers.

When choosing life insurance for a mortgage, you need to understand that the premium amount will vary for different clients. This is due to many factors that insurers pay attention to when applying decreasing or increasing coefficients.

Elderly people will have to pay more because the risk of illness or death is higher than that of younger borrowers.

For men, the tariff may be higher because they have a shorter life expectancy than women.

According to statistics, people employed in hazardous and difficult working conditions live shorter lives. Insurance companies also take this into account when issuing a policy with an increasing coefficient.

The higher the amount of debt, the more insurance will cost, since they are calculated from the size of the loan.

The exact rate of life insurance for a mortgage is calculated individually, and it is influenced by many factors - from age and gender to health and lifestyle. However, in each case, insurers have a base amount expressed as a percentage. They start from it when making calculations.

On recalculation of insurance for partial repayment of the loan.

With partial early repayment you have the right to demand that the insurance company recalculate the amount of the premium, and if you overpay, return part of it. To do this, you will have to bring a certificate from the bank about the balance of the debt and a schedule for calculating monthly payments, which is issued when signing the loan agreement. Here, too, you need to read the terms of the life insurance contract for a mortgage, since in some organizations this can be done only a few times during the policy period or this possibility is not provided at all.

Refund of the insurance premium upon full early repayment of the mortgage.

Termination of a life insurance contract is possible upon full repayment of the debt to the bank. In some cases, the insurance company does not pay the balance, but this is stated in the contract. If such a possibility exists, you must write an application addressed to the head of the insurance company with a request to return an amount equal to the amount of insurance payments for unused time. In addition, you must attach a certificate indicating that you have no financial obligations to the bank for the mortgage. Money is transferred by bank transfer to the account you specified.

When taking out a long-term loan, the bank will in any case insist on life insurance for the borrower, as well as on some other insurances. It's all about the following risks:

1. If the client dies, there will be no one to repay the loan.
2. The client may become incapacitated and will not be able to repay the loan.
3. Real estate purchased with a mortgage can be destroyed by accidental or intentional factors.
4. The client may be deprived of ownership of the purchased property through the court.

Of course, the main emphasis will be on . Such demands are not surprising, because this is the only way the bank will be able to protect its interests if it fails to obtain collateral for the loan.

Attention: The whole point is that it is not at all necessary for the bank to satisfy this requirement. It will not be possible to stipulate this obligation in an agreement with a bank, so no one can strictly demand life insurance from a client.

But be that as it may, When insuring life, the borrower will have its own benefits. Having insured himself, he will receive a full guarantee that in the event of his death (or incapacity for work), none of his guarantors will have to pay his own mortgage. After all, when the attack insured event The insurance company will repay the loan.

Does a co-borrower need this?

Now let’s talk about whether it is necessary to insure the life and health of the mortgage co-borrower. Over a long period of mortgage repayment, the co-borrower risks just as much as the borrower himself.

If something happens to him for which the borrower is insured, then there can be no talk of any insurance payments, since the co-borrower is not registered in insurance policy. In the future, the borrower will have to make mortgage payments on his own.

Therefore, to avoid this, It is also advisable to insure the life of the co-borrower, although this is not a mandatory step in obtaining a mortgage.

Is it possible to do without this or not?

As mentioned earlier, despite the bank’s persistent offers to insure the borrower’s life, a mortgage can be taken out without this. Of course, banks have their own methods of persuasion, which they will be happy to use.

How to refuse?

You can always refuse life insurance. However, this will be followed by bank actions aimed at reducing its own risks. This usually looks like a noticeable increase interest rate on mortgage. By warning about this in advance, the bank will try to influence the client to change his decision.

Pros and cons of the solution

Refusal of this insurance, on the one hand, allows you to get away from additional expenses for insurance. But the disadvantages may seem more significant for some. After all, in addition to increased rate, the borrower will also face his own risks described above.

And the bank can also “sweeten” the choice by reducing the interest rate when taking out an insurance policy. Moreover, he can reduce the percentage quite seriously, to 0.5% -0.8%.

Reference: Over the years, such a discount will allow you to save significantly, for example, by taking out a loan of two million for 15 years at 1%, and receiving a discount of 0.5%, you can save about 200 thousand rubles.

How much does it cost to insure health?

Of all mortgage insurance, life and health insurance is the most expensive. And indeed, the most expensive policies are those that have the greatest chance of an insured event occurring.

The risk, in turn, depends on the age of the borrower (the older he is, the greater the risk) and the presence of chronic diseases.

It's worth remembering that Insurance premiums are made annually until the end of the loan term. And at the same time, the amount of the contribution is constantly regulated, and each time recalculated depending on the remaining amount of the debt.

Rates and tariffs

Let's look at how much it will cost to insure yourself. Typically, the average price for an insurance policy is about 1.5% per year of the cost of the loan. At the same time, the maximum cost of health and life insurance will not exceed 2%. It turns out that on average, with a loan of one million, the payment for the first year will be approximately 15,000 rubles and will be recalculated in the future.

How to calculate the cost?

The cost of insurance will directly depend on the balance of debt at the time of calculation, as well as from the insurance company where the policy is purchased. To decide on the choice of insurer, you can use online calculators to calculate the cost of insurance.

Important: For each client, the amount of premiums will be different, because insurers apply a large number of coefficients to the calculation, both increasing and decreasing.

For example, older people will have to contribute more than younger people because they have a higher risk of illness or death.

Men may also have a higher tariff compared to women, because women, according to statistics, have a longer life expectancy. Also, people who work in hazardous conditions are more likely to get sick and die.

The exact tariff is calculated individually for each person, however, insurers have their own certain base percentages, from which they base themselves when applying increasing/decreasing coefficients.

You can find out more about how to determine where life and health insurance is cheaper for a mortgage.

Required documents

To successfully complete an insurance contract, you must provide the following set of documents:

• Borrower's passport.
• Borrower application form. It is filled out and printed right on the spot.
• Concluded mortgage agreement.
• Medical statement about the borrower’s health status (taken at the clinic). If it confirms the client’s good health, then the insurance premium may be reduced.
• In addition to the medical certificate, a certificate may be required that the borrower is not registered with a psychiatrist.

The policy will be issued after the first deposit insurance premium.

Drawing up an agreement with the insurance company

The insurance contract should be treated very carefully. Especially You should pay attention to the following points:

1. Insurance period. The insurance contract must be valid throughout the entire loan period. However, payments must be made annually.
2. Insurance territory. The Treaty must apply throughout the world, without exception.
3. Exceptions under which there will be no insurance payments. They must be read and memorized carefully.

What must be included in the document?

There are several life and disability insurance cases in which insurance companies are obligated to pay insurance funds. All cases must be specified in the insurance contract:

• The death of the borrower.
• Receipt borrower I disability group (complete loss of ability to work).
• Receipt by the borrower II-groups disability (with partial loss of ability to work).

In addition, it is worth remembering about exceptions, in which the insurer will be exempt from payments:

1. Cases of harm to health and/or life due to the borrower committing illegal actions, for example, driving while drunk.
2. The insured event arose due to a suicide attempt during military operations (including exposure to radiation).
3. With solid evidence of intentional harm to health and/or life, in order to receive insurance payments.

What to do if the loan recipient dies?

All property of the borrower, including real estate that was purchased under a mortgage, is legally inherited.

• If the borrower was insured and the death was eligible, the insurance company will pay off the remaining mortgage debt. The heirs will have full rights to use the received property.
• If the borrower was not insured, then the borrower’s debt will go to the heirs along with the property.

Important: if they refuse the inheritance, the property will become the property of the bank and will be sold. In this case, the heirs have absolutely nothing to count on. All this speaks only in favor, and it’s worth thinking about.

Procedure

To process insurance compensation passed correctly, you will need to do the following:

1. To begin with, heirs should carefully study the details of the insurance policy.
2. After determining all the nuances and making sure that the death was covered by the insured event, it is necessary to send a notification about the incident to the insurance company. The notice deadline is also specified in the contract, and it should not be violated, otherwise it will be almost impossible to obtain mortgage payments from the insurer.
3. Next, the bank will initiate an investigation into this case.
4. Then you need to collect and provide the bank with the necessary documents.
5. Next, the insurer will come into play, but under no circumstances should you stop making payments on the mortgage. This must be done until the insurance company transfers its funds.

From necessary documents You need to collect the following (usually voiced by an insurance adjuster):

• Insurance contract, insurance policy.
• Passport.
• Application on the form of the insurance company.
• Documents confirming what happened. They may be a death certificate of the borrower, a police report, an accident report from the enterprise, etc.
• Certificate about the current amount of debt. Taken from a bank.

Life insurance when applying for a mortgage is not a mandatory step, but banks will strongly insist on its registration. But this is really worth thinking about because such a long-term loan brings a lot of risks not only to the bank, but also to the borrower.

If you refuse, the bank will play it safe and raise the interest rate on the loan. And if an insured event suddenly occurs, then his debt will pass from the borrower to his heirs. Life insurance will allow you to avoid this: the insurance company will pay the debt, and the property will go into the possession of the heirs.

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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 Federal law“On mortgages”, only insurance of the collateral 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.

Property 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 validity.

According to Russian legislation, 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.

Read more about mortgage life insurance

First of all, let's understand why you need this insurance. Life insurance allows you to fully repay the borrower's mortgage debt at the expense of the insurance company. This obligation arises before the insurance company if one of the insured events specified in the policy occurs. Let's outline these risks.

Mortgage life insurance covers the following risks resulting from illness or accident:

• Death of the insured;
• Receiving disability, but only groups 1 and 2;
• Temporary disability for more than 30 days;

But it is very important to understand that there are certain conditions under which the insurer will refuse to pay the borrower. Let's look at the circumstances under which the insurance company will refuse to pay if the above-described insured events occur:

1. If the borrower has AIDS or HIV and is registered at a dispensary.
2. In case of suicide (if it is not driving to suicide).
3. If alcohol, drugs and other substances that contribute to toxic intoxication are detected in the blood.
4. When driving a car or other device without a license.
5. If the insured event occurred during the commission of a crime that was proven in court.

If an insured event occurs to the mortgage borrower, but any one of these circumstances is identified, then the insurance company will refuse to repay the mortgage to the bank and the relatives or the borrower himself will be obliged to repay the debt to the bank on their own.

Life and health insurance for a mortgage has its own characteristics in terms of the period for recognizing an event as an insured event. So:

1. For the risk of “death”, it is necessary to contact the insurance company during the validity of the insurance contract, but no later than a year from the moment of the accident or illness that caused the death of the borrower.
2. In the event of disability - during the insurance period and no later than six months after its expiration
3. For temporary disability - after 30 days of continuous sick leave.

If an insured event occurs to the borrower and the insurer recognizes it, then he is obliged to repay the borrower's debt to the bank. The insured amount for mortgage life insurance is the amount of debt owed to the bank. It is this amount that the insurance company will transfer to the bank, with the exception of the risk of temporary disability. There, payment is made upon the fact for each day of incapacity based on the amount of 1/30 of the mortgage payment.

It is important to know! If an insured event “disability” occurred and a payment was made for it, and then death occurred, then there will be no more payments. If at first there was a payment for temporary disability, and then death or disability occurred, then payments for temporary disability will be deducted from the sum insured. Insurance payment will be made only for the borrower indicated in the policy. If an insured event occurs with a co-borrower and he does not have such a policy, then there will be no payment and the borrower will be required to make further payments on his own.

The insurance period is one year. Each time you will need to contact the insurance company and renew the insurance for the next year, otherwise there will be sanctions from the bank. We will talk about them in the last part of the post.

Important! Read the mortgage agreement carefully. Look at the section about insurance. Perhaps it contains a condition according to which the bank does not have the right to oblige you to insure life and health in subsequent years. This will allow you to significantly save on mortgage servicing.

Payment documents

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

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

Documents regarding the 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 They 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, 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.

We are waiting for your questions and comments. Subscribe to updates and click the buttons social networks, if the post was helpful.

There is a question that worries potential borrowers: is life insurance required for a mortgage with Sberbank in 2020? After all, such a clause is spelled out in the loan agreement for a mortgage with government support.

The preferential mortgage rate applies only on the condition that the borrower necessarily insures his life and health. Otherwise, the bank has the right to increase the lending rate by 1%.

To insure or not to insure

First, let's figure out whether it is necessary to insure life at all in order to receive mortgage? After all, many banks insist on such insurance. Are their demands legal? Who needs it more: the bank or the borrower?

Personal insurance covers a whole group of risks:

• death of the borrower;
• persistent health disorder and disability;
• injuries and acute diseases;
• partial loss of ability to work.

If the borrower has difficulty repaying the loan for one of the above reasons, the insurance company will pay off the resulting debt for him. The bank receives these funds. But the credit institution can send part of the money to the borrower so that he pays for treatment, returns to work as soon as possible and resumes payments.

Thus, insurance for the lender reduces the risk of non-payment of the debt. And the borrower is guaranteed that in the event of unfavorable circumstances, the burden of repaying the loan will not fall on his loved ones. And even in the event of loss of health or temporary loss of work, he will be able to repay part of the debt with the help of insurance. Considering that the loan is given for a period of up to 30 years, the occurrence of an insured event does not seem completely impossible.

What they say at Sberbank

In Sberbank managers also sometimes insist that life insurance is mandatory with a mortgage. But borrowers are often not concerned with the question itself: whether to insure life or not. Indeed, in recent years, personal insurance has ceased to be perceived as something completely unnecessary. Especially when it gives you the opportunity to get profitable terms mortgage loan and reduce the loan rate.

Conflicts arise when Sberbank employees not only impose life insurance, but insist that the policy be issued specifically at the Sberbank Life Insurance company. And its annual rates are not the lowest:

• life and health insurance of the borrower – 1,99% ;
• life and health insurance in connection with involuntary loss of work – 2,99% ;
• life and health insurance with independent choice of parameters – 2,5% .

Interest is calculated on the insured amount, which is equal to the loan amount. And the recipient of the loan will have to make significant payments.

How to behave correctly with bank managers

The borrower has the right to insure his life and health in any insurance company accredited by Sberbank. This rule is stated in a separate clause in the loan agreement.

There are four such companies, besides Sberbank Insurance:

• LLC IC "VTB Insurance";
• JSC "VSK";
• LLC "ISK "Euro-Polis";
• OJSC "SOGAZ".

Their rates are usually lower than the rates at Sberbank Insurance. But, despite the law, Sberbank managers sometimes insist on issuing a policy with their insurance company. It is difficult to say what is driving them: simple incompetence or the desire to make money on additional services. But unfortunately, such precedents do happen. In this case, the potential borrower needs to refer to the Sberbank of Russia website. It says that you can insure health and life with any insurance company that meets the requirements of a given credit institution.

If this does not help, then it is necessary to request from the bank employees a written refusal to issue a loan with a mandatory indication of the motive. As a rule, such a step is enough to remove all objections from managers and begin to conduct a constructive dialogue. Otherwise, you need to contact Sberbank management directly or appeal the unlawful refusal to issue a loan in court.

Video: About mortgage insurance

Summarize

When you take out a home loan from Sberbank, it is not necessary to enter into a personal insurance agreement. You have the right to refuse insurance. No law provides for its mandatory presence.

Voluntary health and life insurance when obtaining a mortgage loan has positive and negative sides. The biggest disadvantage is the total amount of insurance payments under the contract. Considering that contributions must be paid annually, the cost of life insurance for a mortgage with Sberbank is significant, loan programs are designed for 30 years, this results in a significant overpayment.

But if we take into account that In the absence of insurance, Sberbank increases the loan rate by 1%, then there is a reason to insure. It is not necessary to do this at Sberbank Insurance. It is wise to look for more favorable conditions from other insurers accredited by this credit institution.

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11 comments

11/05/2016, the borrower of 2 million rubles died at work...since 2007, half of the amount was paid...his wife (38 years old) does not work and two small children (3 and 10 years old) are not able to pay another 1 million...what I can hope what to do? the family found only a VTB property insurance policy... in contract No. 26740 there are also no lines about a life insurance policy... How should we go to the President? my telephone number is 925-185-36-41

Good afternoon! Please tell me what to do if an employee of Sberbank, when applying for a mortgage loan, forces us to insure ourselves with them, but we want to use another insurance company, to which the employee says, go get insured, but refuses to provide the number of the credit agreement for the insurance company?

Mortgage lending is now a fairly common way to purchase your own home. Every borrower has already encountered or heard about insurance for such a loan. Sometimes this turns out to be an unpleasant surprise, as it forces the client to fork out extra money. However, life and health insurance for a mortgage, although not mandatory, according to most experts, serves as a “safety cushion” for both the borrower and the bank.

A mortgage life insurance policy obligates the insurance company to pay off the mortgage debt in the event of an insured event involving the borrower. Repayment may be partial or full.

Expert opinion

One of the inexpensive and reliable insurance companies in 2020 is Ingosstrakh. The list of services provided by the company also includes mortgage life insurance. You can familiarize yourself with the conditions and apply for insurance on the official website of Ingosstrakh.

That is, this insurance covers certain risks, namely:

1. Death of the borrower. In this case, you must contact the insurance company during the term of the contract, but no later than 1 year from the date of the accident or illness that resulted in death.
2. Receiving disability of 1 or 2 groups. You should contact the insurer no later than six months after the end of the insurance contract.
3. Finding on sick leave more than 30 days. Depending on the insurance company, payment is made either immediately or after the closure of the sick leave.

In the first two cases, the insurance company pays the entire amount of the existing debt. And for long-term sick leave, the payment is made daily at 1/30 of the loan payment. Life insurance gives the borrower a guarantee that if he becomes unable to work, his debt will continue to be paid by the insurance company, and no debt will arise.

Important point: There may be situations where the borrower dies after receiving disability insurance payments. Then no more payments are due. And if at first the client was on sick leave and the insurance company transferred loan payments to the bank, and then disability occurred, then payments are due for it. But sick leave payments will be deducted from the total amount.

To insure a co-borrower and be eligible to receive payments, you must take out the same life insurance policy for him. Otherwise, if an insured event occurs to the co-borrower, credit debt will not decrease, and will fall entirely on the shoulders of the borrower.

It is important for the borrower to know that the insurance company may refuse payment in the following cases:

1. The insured person has AIDS or HIV and is registered at a dispensary.
2. In case of suicide (except for the case of incitement to suicide, which must be established by the court).
3. If a blood test of the deceased determines that he consumed alcoholic beverages or narcotic substances.
4. The insured was driving vehicle without having the rights to manage it.
5. The insured event occurred during the course of a crime and this was proven in court.
6. The presence of a serious chronic disease at the stage of concluding an insurance contract, which the borrower concealed.

Any of the above circumstances will lead to the insurance company not covering the debt to the bank. As a result, the borrower himself or his heirs (if they inherit) will have to pay off the mortgage.

Expert opinion

Alexander Nikolaevich Grigoriev

Mortgage expert with 10 years of experience. He is the head of the mortgage department at large bank, has more than 500 successfully approved mortgage loans.

Events such as loss of a job, death of a close relative (including a co-borrower, if a separate policy was not issued for him), and delayed wages cannot serve as grounds for contacting an insurance company. In these cases, the borrower should contact the bank directly for possible loan restructuring, if necessary.

For a bank, this type of insurance is important because credit debt Moreover, mortgage loans have a long term. No one can say with certainty what will happen to the client after a given period of time and whether he will be able to pay the mortgage.

Lack of insurance can lead to lengthy litigation in the future and the bank does not always manage to repay the loan issued. There are many nuances in such disputes; in particular, the borrower’s only home cannot be taken away. Thus, for the bank, the life insurance policy serves as an additional guarantee that the money will be returned in any case.

Is life insurance required when taking out a mortgage?

The question of whether it is necessary to take out life insurance with a mortgage is very relevant, especially if insurance payments are high. According to Federal Law No. 102 “On Mortgage” it is voluntary. Therefore, the bank cannot oblige the client to take out an insurance policy.

However, due to an increase in its risks, the bank may offer the borrower other, more stringent lending conditions. In particular, increase the interest rate, reduce the term, require a guarantee, etc.

In general, there are three types of insurance available for a mortgage:

1. Insurance of collateral property. It is required by law. The property is insured against destruction and external damage (for example, earthquake, house collapse) for the entire loan term. For insurance interior decoration and interior items, it is necessary to include this in the contract as a separate clause.
2. Health and life insurance. Upon the occurrence of an insured event at any time loan agreement, the entire balance of the debt or part of it is assumed by the insurance company.
3. Title Insurance. If in the past mortgage real estate were controversial issues about property, then after the conclusion of the loan agreement, “unexpected guests” are possible in the form of applicants for the borrower’s property. Title insurance protects the interests of the bank in the event of loss of title to the client. In addition, the borrower can take out separate title insurance for himself in order to have a “safety cushion” in the form of payments from the insurance company if the property is legally unclean. The validity period of such agreements is always no more than 3 years, since after this, according to the law, all property disputes are not accepted by the courts. This mortgage insurance is not required, but the bank may require it if the property being purchased is in doubt.

Read also other articles from our experts:

Where is it better to get a mortgage in 2020, which banks have the most favorable conditions, and how to make your mortgage as profitable as possible -.

When selling an apartment with a mortgage, you will definitely encounter a procedure such as real estate appraisal. Why is it needed and how does it work, the essence of the procedure and the main features that you will encounter in the article at this link.

3 reasons in favor of insurance

For the borrower, life and health insurance will make his situation easier in case of possible force majeure. Otherwise, in case of partial or complete loss of ability to work, you will have to resolve the issue of a loan only on your own. An issued insurance policy allows you to count on a number of preferences from banks.

Of these, 3 main benefits for the borrower can be identified:

1. Reduced percentage.
2. There is no requirement for a mandatory guarantee.
3. Smaller down payment.

Of course, there are banks that offer mortgages without mentioning life insurance at all. But the decision in any case remains with the borrower. Tempting offers often hide more high commissions and interest, because in the absence of insurance, the bank has to reduce its risks in other ways. We recommend taking out a mortgage loan with life and health insurance, especially with a long repayment period.

Expert opinion

Alexander Nikolaevich Grigoriev

Mortgage expert with 10 years of experience. He is the head of the mortgage department in a large bank, with more than 500 successfully approved mortgage loans.

Refusal of life insurance entails an increase in the mortgage interest rate by 0.5-3.5% in different banks. More stringent requirements are imposed on the borrower, sometimes reducing the maximum possible loan amount, which does not suit all clients.

When choosing an insurance company, bank managers may persistently suggest a specific insurer. This occurs due to the incompetence of individual employees or due to the need to fulfill the plan for additional services. Meanwhile, the borrower can insure himself with any insurance company that meets the requirements of the bank, that is, accredited with it.

We recommend comparing the conditions and cost of insurance in several companies - the difference can sometimes be noticeable. It is often more expensive to insure with a bank, but it also happens the other way around, when the client is offered suitable conditions as part of special promotions or due to long-term cooperation with him.

The life and health of military personnel and some other categories of borrowers may already be insured. But you still won’t be able to refuse such insurance from a bank. The fact is that under this insurance the payment is received by the borrower himself or his relatives and the money may not be used to repay the mortgage. The bank needs it to be the beneficiary (that is, the recipient of the insurance payment).

Where do they provide mortgage insurance - top 5 companies

Let's consider the conditions of 5 popular insurance companies where you can insure life and health for a mortgage. The comparison uses data from the authoritative rating agency "Expert RA" (raexpert.ru) from the rating financial reliability insurance organizations providing life insurance services.

Ingosstrakh

One of the largest and well-known companies in Russian market. The rating agency "Expert RA" characterizes Ingosstrakh with high credit capacity, financial reliability and stability (ruAA).

The organization has attractive offers for mortgage insurance. Ingosstrakh has offices even in small towns and villages. The website has a special calculator that will help calculate the cost of insurance based on various conditions.

After the calculation, the client will be offered to issue an insurance policy and pay for it online, without leaving home. After payment, a letter with a policy certified by an electronic signature is sent to your email. The client only has to sign it on his part.

Life and health insurance with Ingosstrakh has the following advantages:

1. Large, stable and solvent company.
2. Widespread in regions and small towns.
3. Discounts for online registration. For example, for Sberbank clients the organization provides a 15% discount when applying for a policy online.
4. There is a convenient calculator for calculating the cost of insurance.

Insurance calculator

You can calculate your insurance using a special Ingosstrakh calculator and apply for it online directly on our website or on the insurance company’s website using this link.

For example, annual cost life and disability insurance for a 35-year-old female borrower, for a mortgage taken from Sberbank at 10% for an apartment with registered ownership, with a debt balance of 1,500,000 rubles, will cost 5,211 rubles (with a 15% discount).

Calculated the cost of life insurance in Ingosstrakh

VSK Insurance House

A fairly large and well-known company, with moderate high level reliability and financial stability(ruA+) according to the rating agency Expert RA.

Ranks 7th in terms of fees in the life insurance niche. The regional network includes more than 500 branches and offices throughout the country. There is a possibility online registration policy, but the rates are quite high.

We will calculate the cost of insurance at VSK. The conditions are the same as in the previous example. The cost of insurance under the “Protected Borrower” program will be 5,100 rubles. However, the amount is not final and may change upward if you provide additional data (weight, place of work, etc.) when filling out the form.

RESO Guarantee

The organization is engaged voluntary insurance against accidents and illnesses, life insurance. The company's reliability rating, according to the Expert RA agency, is ruAA+. An organization with a high level of reliability, creditworthiness and financial stability.

RESO-Garantiya is a member of the All-Russian Union of Insurers and the Federal Self-Regulatory Union of Insurance Organizations. It is the only company that insures clients over 60 years of age. The official website has a convenient cost calculator.

Having calculated the cost of insurance on a calculator with the same conditions, we get the amount of 3,555 rubles. The amount may change if you provide additional information to issue a policy. For Sberbank the result is not valid, the cost will be higher.

Insurance calculation in RESO guarantee

Sberbank life insurance

A subsidiary of Sberbank of Russia, it was created to insure the lives of its borrowers. The line of tariffs includes the “Protected Borrower” offer for mortgage clients. Allows you to reduce the Sberbank mortgage rate by 1%.

The Expert RA agency characterizes the company with the maximum level of creditworthiness, financial reliability and stability (ruAAA). The rating outlook is stable.

Among the advantages, we highlight the reliability and stability of the company, the ability to issue a policy on the official website online with a 10% discount. The maximum debt balance is 1,500,000 rubles; if the amount is larger, insurance is issued at a bank branch.

It is considered a minus high price policy – ​​30-40% higher than that of other accredited insurers. A calculation on the Sberbank website shows that the cost of insurance under the same conditions will be 5,160 rubles.

Cost of life insurance at Sberbank

SOGAZ Life

A subsidiary of Gazprom and Rossiya Bank. A serious company, with the maximum level of financial reliability and stability according to Expert RA (ruAAA rating). Mainly accepts mortgage clients of Gazprombank, who have practically no chance of insuring themselves in another organization.

The company is actively developing classic long-term life insurance primarily for corporate clients, bank insurance borrowers' lives, cooperating with banks, and long-term life insurance individuals who are not employees of partner companies.

The basic life insurance rate for Sberbank is 0.21%. With an insured amount of 1,500,000 rubles, the cost of the policy for 1 year will be:

1,500,000 / 100% * 0.21 = 3,150 rubles.

One of the most inexpensive options for Sberbank.

How much does mortgage life insurance cost and why might it become more expensive?

On average, life insurance will cost the borrower 0.5–1.5% of the amount owed on the mortgage. The policy is usually issued for 1 year and renewed for the next year. As the amount of debt decreases, the amount of insurance will also decrease. The borrower also has the right to change the insurance company.

The cost of the policy and the tariff for each borrower are determined by weighing a combination of factors:

1. Floor. For men, the risk for this factor is higher, so when there is a choice of who to put as a borrower and who as a co-borrower, it is better to put a woman in first place. The policy will cost 30-50% less. However, there are companies that do not attach significant importance to gender when calculating the final amount for an insurance policy.
2. Age. Older people have a higher risk of death or illness, so the tariff for them is higher. The difference in rates between a 25-year-old and a 50-year-old client can be 5-10 times. Borrowers over 60 years of age are generally denied life insurance.
3. Presence of chronic diseases. They increase the cost of insurance.
4. General health. A medical certificate will be required from the client. Any deviations to one degree or another affect the increasing coefficient. Therefore, most clients prefer to remain silent about illnesses. We recommend not to hide the truth from the insurer, since concealing illnesses may serve as grounds for refusal of insurance payment.
5. Excess weight. Insurance will definitely be higher for heavier borrowers.
6. Profession. The more risky and dangerous it is, the higher the tariff will be. The risk of an accountant and an employee of the Ministry of Emergency Situations differs significantly. It is generally difficult for the latter to find a company that will agree to insurance.
7. Already on hand valid policy life insurance where the beneficiary is not a bank. Not taken into account by everyone credit institutions, but it wouldn’t hurt to provide it.
8. Amount of credit. The higher it is, the more increasing coefficients insurance companies apply.
9. Commission of the bank. Some banks cooperate with insurance companies and charge a commission for referred clients. Some want 20-50% of the cost of the policy from the insurer, others do not make money from this at all, it all depends on the bank.

How much life insurance will cost is determined taking into account the nuances of a particular insurance company. Marital status, presence of children, other debt obligations, property, etc. may be taken into account.

It usually costs less to purchase comprehensive insurance (life, title and bond). Borrowers should be cautioned to take out a life insurance policy before a mortgage is approved. Otherwise, if the bank refuses, it will be impossible to return the money paid.