Mortgage life insurance is a must. Mortgage life insurance for the borrower. What to do in the event of an insured event

The borrower must be prepared for the fact that in addition to interest and bank fees, he will also need to pay the cost of insurance.

Moreover, in addition to the mandatory real estate policy, which is purchased by the client, it most often must also take out a life and health insurance policy. It is worth finding out whether this procedure is mandatory for a mortgage and how it is formalized in practice.

Legislatively, the recipient of the mortgage is not obliged to buy a health and life insurance policy when making this transaction.

This insurance is rather necessary for the bank, since it is one of the ways to minimize its risks in the event of death or an accident with the borrower. For mortgage lending, this is especially important, because the transaction is executed for a large amount and for a long time.

However, although the bank cannot oblige the client to buy this policy if he does not wants, there are still legal ways to influence him. The most common of these is an increase in the interest rate for the client in case of cancellation of insurance.

For example, the annual cost of a loan can increase by 0.5 to 1.5%, depending on the specific bank and mortgage program. In this case, the overpayment is almost equal to the cost of the policy, so it is easier for the client to issue it, because he does not lose anything financially.

Another way is to refuse to issue a loan to those customers who do not want to issue a policy. Since the bank has the right to independently make a decision on the issuance, it may refuse this to the borrower if he does not meet any of his requirements.

Therefore, most often borrowers on a mortgage loan still have to take out insurance. However, this also has advantages for them, because in the event of an accident or death, they will be sure that their debt will be reimbursed by the insurance company.

Otherwise, debt obligations may pass to the heirs: spouses, children, parents, etc.

The cost and calculation of insurance

Most often, the policy is issued in a complex, for all types of risks - that is, for the mortgage object itself, for the title and for the life and health of the borrower.

This method allows you to get insurance much cheaper than in the case of a separate registration of each.

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

Features of the mortgage object (that is, apartments or). For example, the cost of the policy can increase significantly if the housing is located in a dangerous area. Title insurance (that is, property rights) will also cost more if the property is purchased on the secondary market.
characteristics of the borrower. In particular, his age and field of activity are taken into account. For example, for a young office worker, the cost may be minimal, and for a construction or manufacturing worker, it can be much 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 amount of the loan and is set as an interest rate.

Most often, it ranges from 0.5 to 1.5% of the total 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. These can be medical certificates, doctor's reports, or a death certificate. It is also worth informing the bank about possible delays in payments and their reasons.

After receiving the documents, the insurance company examines them and concludes whether there was an insured event, and also determines the amount of compensation due to the client.

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

If the insurance company refused to pay compensation at all, it is worth informing the bank about this. Since the creditor has a direct interest in the return of funds, he can conduct his own investigation. There are frequent cases when, after this, the insured is still forced to pay compensation.

Pitfalls when applying for insurance

The main risk that the borrower bears when signing a life insurance policy is the inclusion in the contract of provisions that are unfavorable for him. For example, many companies indicate that if a client has a chronic disease, HIV infection, or hepatitis, insurance will not be paid. The list of such restrictions can 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 insured and is of no value to the client or the bank. Therefore, it is the parties concerned who must control the content 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 extended annually). However, in this case, he must be prepared for the fact that the bank may require him to immediately and fully repay the remaining amount of the debt.

In addition to refusal, the borrower can change the insurance company by entering into an agreement with another insured. 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 the change of the insured or the complete cancellation of the policy are contained in the loan agreement. Therefore, at the time of signing the document, all these issues should be studied and agreed upon.

Bank insurance conditions

Almost all large banks that issue mortgage loans have agreements with insurance companies on the issuance of their policies to clients. You can consider the conditions of these policies on 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 their ability to work and assignment of I-II groups of disability.

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 credit funds issued. The maximum amount of 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 situations 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 requires only additional costs. However, in some cases, its presence allows you to receive funds to fulfill your debt obligations, as well as save heirs or co-borrowers from having to repay someone else's loan.

Mortgage involves mandatory risk insurance for the transaction. These risks are divided into two categories: some must be insured necessarily, others - at the request of the borrower.

Compulsory housing insurance includes property loss, damage and destruction. To voluntary - life and health of the borrower, ability to work, insurance against loss of work and income, i.e. you can refuse it, it is given no more than 5-7 days from the date of signing the contract.

In this regard, many people have a logical question - do you need to insure your mortgage every year? You will get the answer to it from this article.

All about mortgage insurance

What the borrower must insure under the law, we already know. Another question is how long such an agreement is usually drawn up. According to the rules:

for the entire term of the mortgage loan - this applies to insurance of the property against its loss or damage.
As for the loss of ownership of the object - here the risks are usually issued for 3 years, some suggest also to issue for the entire period of the loan agreement.
If you can repay the loan ahead of time, you will get the opportunity to return part of the money spent on insurance, details.

Typically, such payments are made once a year, and their size is about 1-2% of the balance of the debt, multiplied by 10%. When the deadline for the next contribution to the UK approaches, the bank notifies the partner about the balance of the client's debt.

Based on these figures, the next installment is calculated. Accordingly, every year the amount of payments decreases every year, in proportion to the decrease in the amount of debt.

You should also pay attention to what kind of housing is issued:

In the case of buying ready-made housing, the borrower starts paying from the moment the transaction is completed to transfer ownership of the object to him.
In the case of acquiring housing under construction, payment begins after the house has been commissioned and the person has registered ownership.

Consequences of refusal

What happens if you stop paying for additional services? Such an idea very often appears among clients in a situation where solvency for some reason decreases, and it becomes impossible to pay already large monthly installments.

In this situation, it should be remembered that the insurer must notify the banking organization in which you are served about the unpaid service for this year. After that, as a rule, a bank employee contacts you and asks you to pay for it.

If you do not do this, then various penalties are possible here, their list and size depend on the particular bank. Most often, an increase in the interest rate follows, which increases the monthly installment and the total overpayment, detailed conditions must be found in the bank or read in your contract.

Mortgage insurance: where is the cheapest?

If you nevertheless decide to take out property insurance, which is absolutely necessary under the terms of housing loans, then, of course, you will immediately be offered to contact organizations that are partners of the bank. And not always there you will be offered the most favorable conditions, just the bank receives a percentage from each client, and therefore sends you to its partners.

Remember that the lender has no right to limit you in choosing an insurer. You have every right to refuse to cooperate with those insurance companies that the bank imposes on you, and find another insurance company that will perform all the same services, but much cheaper.

How to find them? To get started, write down how much you were told at the bank branch when contacting partner insurance companies. From it you will repel. And then everything is simple - you drive in the search engine the query "Mortgage insurance in the city ..", enter the city of your location and go through the first links.

As a rule, all insurers on the site have the ability to calculate the cost of services using an online calculator. By comparing several offers, you can choose the most advantageous for you.

Where will be the cheapest? Judging by the feedback from our readers, the lowest prices will apply here:

Sberbank Insurance - 0.25% of the loan amount,
VTB Insurance — policy cost from 1%,
VSK insurance house - comprehensive mortgage insurance will cost you from 0.43% of the approved loan,
RESO - property insurance from 0.1%, for Sberbank - from 0.18%,
IC Alliance - complex from 0.87%, for property - from 0.16%,
Rosgosstrakh - property can be insured at a rate of 0.2%,
Ingosstrakh - cost from 150 rubles, 15% discount when applying for a policy online,
AlfaStrakhovanie - also from 0.1% of the approved amount, up to 30% discount on mortgage insurance policy.

What determines the final rate? From many features, mainly from the amount of your loan. They also look at the gender of the borrower, his weight, age, field of activity and the history of the relationship between the borrower and the UK.

The borrower may already have insurance at the time of submitting the application to the bank.

How to act in such a situation?

First, you need to clarify whether the insurance company that serves the consumer is an accredited partner of the bank.
If not, then it will be difficult to agree that the existing insurance is taken into account.
If yes, then it is necessary to notify the bank of its presence and, if it agrees to accept it for consideration, it is necessary to contact the UK.
In the contract, it will be necessary to change the data, making the bank the beneficiary in the event of insured events.

When applying for a housing loan, the borrower has the right to choose the insurer himself, the rating of companies is presented at the link.

Early repayment insurance

In conclusion, I would like to say a few words about the full early and partial repayment of mortgage debt. If the borrower (in the middle of the year, let's say) has made full early repayment of the housing loan, he needs to apply to the insurance company and claim the amount from it for the remaining unused period - that is, for 6 months.

When applying for a mortgage loan, one of the conditions of the bank is insurance of mortgaged real estate. Thus, the bank reduces its risks in case of loss or damage to the collateral. This procedure is mandatory by law. But is it necessary to insure real estate with a mortgage every year? Or can we do without it in the coming years?

The procedure and features of drawing up an insurance contract

The object of insurance is collateral real estate. It must be insured during the entire period of the loan agreement.

Usually the bank offers to choose an insurance company from the list of accredited ones. In addition, the bank will most likely be indicated as the beneficiary in the contract, and the policyholder, in the event of an insured event, will not be able to dispose of the payment at his discretion.

Insurance rates may vary. On average, they amount to 0.25 - 0.5% of the sum insured. Their size depends on several factors:

List of risks covered by insurance.
franchise size. The deductible is the part of the damage that the insurance company does not pay. If the amount of damage is less than the amount of the deductible, no compensation will be paid.
The technical condition of the object of insurance. The size of the tariff is affected by the materials of walls and ceilings, the number of floors, the presence of repairs, etc.
Features of operation.

The bank usually requires mortgage insurance against four main risk groups:

Damage caused by fire.
Water damage.
Natural disasters.
Illegal actions of third parties.

At the request of the borrower, it is possible to insure the interior decoration of the premises, which will lead to an increase in the tariff.

Interaction with the insurance company can take place without contacting its office. In any case, before signing the insurance contract, an employee of the insurance company or its authorized person inspects the future collateral real estate and draws up an act that is signed by both parties.

Can be distinguished the main requirements that the insurance company makes to the object of insurance:

The property must not be in disrepair or should not be recognized as dilapidated.
The building is not to be demolished.
The degree of wear should not exceed 70%.
All construction work must be completed by the date of execution of the contract.

The sum insured usually starts from the loan amount plus 10%. But, as a rule, banks require to conclude an insurance contract based on the estimated value of real estate.

The insurance contract is concluded for at least one year. In fact, the borrower has to bear additional costs annually to pay the insurance premium. You can apply to the bank with an application for payment of the insurance premium in several parts. But in any case, it is necessary to insure real estate with a mortgage every year.

Payment of compensation

In the event of an insured event, first of all, it is necessary to notify the insurance company and the creditor about this. The amount of the payment depends on the degree of damage to the collateral.

If the property is not subject to restoration, then the payment of insurance compensation will be used to pay off the debt. In the event that the loan amount is less than the amount of insurance payments, the policyholder will receive the difference in his hands. If the damage does not significantly affect the value of the mortgaged property, then the bank decides where the compensation will be sent. Usually, if the borrower repays the debt on time, the bank may allow the payment of insurance compensation to him to restore damage or compensate for losses incurred.

Title risk insurance

Title insurance is insurance against the risk of losing ownership of real estate. This type of insurance is optional. However, there are cases when lawyers of a credit institution put forward requirements for concluding a title insurance contract after analyzing the documents for the purchased property.

The question of this type of insurance arises when there is a risk of recognizing the illegality of the transaction. For example, the rights of a minor were violated, or the sale was made by a person with mental disorders. Also, an increased risk arises if the sale of real estate was carried out by a third party on the basis of a power of attorney.

A title insurance contract is usually concluded for three years.. This corresponds to the statute of limitations on property rights.

When signing an insurance contract, do not spare time and carefully read the entire contract (as a rule, it takes several pages of text written in small print). If there are any unclear points, it will not be superfluous to consult a lawyer. If there are clauses that infringe on the legal rights of the insured, it is necessary to demand amendments to the contract. This will help to avoid a situation where, as a result of an insured event, the borrower may be left homeless and with a loan balance.

Obligatory in this case is the execution of mortgage housing insurance - as stated by the Federal Law on Mortgage No. 102-FZ, Art. 31. The pledged square meters are insured for the entire period of validity of the transaction agreement.

As a rule, already in the office of the bank, the new mortgage lender is offered a list of accredited insurance companies, with one of which the contract is signed. You need to carefully review all of its points.

It may well turn out (and this usually happens) that the beneficiary in this situation is not the borrower himself, but the financial institution that gave the mortgage.

Attention! Often the bank insists and even demands that the borrower take out one or more insurances, for example, life insurance.

Is it necessary to be insured?

Mandatory if we are talking about a mortgage apartment - as already mentioned, this is expressly stated in Article 31 of Federal Law No. 102-FZ.

As a rule, the estimated value of the apartment is taken as a basis. As a rule, the insurer has few requirements: the house must not be dilapidated (permissible wear and tear is a maximum of 70%) and not be prepared for demolition, and all construction work must be completed by the time the deal is signed.

Usually the bank requires that the probability of damage from:

fire;
flooding;
illegal actions of unauthorized persons;
elements.

Sometimes the client himself adds other items - for example, insurance for interior decoration of the home.

The average tariff is usually up to 0.5% of the insurance amount.

Its value varies and depends on the following nuances:

what risks are covered.
Deductible (that is, that part of the damage that is not paid by the agency).
The technical condition of the dwelling and features of operation.

Do I need to pay fees annually and re-register?

Yes. The minimum period for which a contract is required is one year.

If it will be difficult for the mortgage lender to bear this duty every year, you can write an application to a financial institution with a request to be allowed to pay contributions in installments. But anyway, Annual insurance premium is required.

Yes, if the insurance expires, and you are still far from paying off the entire loan. According to the Mortgage Law, pledged property must be insured until the mortgage expires.

Do I need to do this if there are delays in payments?

It is necessary to insure mortgaged housing, regardless of whether you have a debt or not. Moreover, it is necessary to fill this gap as soon as possible, because the delay will increase.

Moreover, if you contact a bank (for example, Sberbank) with a request for debt restructuring (and this is exactly what you should do in this case), then the fact of non-payment of insurance will be revealed and may become a reason for refusal.

In addition, upon the fact of the very first delay, if you then resume payments at least at a nominal amount, the bank will not rush to sue you, and not a single court will foreclose on your apartment. But the fact of non-payment of mortgage insurance is a legitimate reason for early recovery of the loan balance.

What if the bank forces you to insure life or property?

It's better to agree to it. Yes, this is not mandatory - after all, the aforementioned Federal Law on Mortgage does not say anything about the obligation of this transaction, and not a single bank has the right to put pressure on a client, demanding to take out insurance. However, before any trade, you need to ask yourself the question: what will I lose and what will I gain from this?

You will win the following - in the event of your death, your family members will not pass your mortgage debt. The rest of the loan will have to be paid by the insurance company, and your loved ones will not lose the roof over their heads and re-register their property rights.

The prospect of the development of events after your death in case of non-registration of life insurance is not even necessary to imagine.

It is enough to look at examples from judicial practice in such cases. The debt will go to your loved ones. They may not cope with it and then the bank will go to court and win it, and the family will be evicted.

So the benefit of this option is obvious.

However, if you are sure that within the next ten to fifteen years, or for how long you are applying for a loan, you are not going to the next world and will pay the loan yourself, you have the right to refuse this option. Moreover, you need to remember that this will significantly increase the burden on your budget.

Moreover, as has been repeatedly mentioned, you need to agree, because this is the requirement of the law. Without this, a mortgage deal is impossible and the bank will simply refuse you.

As a result, it turns out that only the requirement to insure a mortgage apartment should be accepted without discussion - unless, of course, you have changed your mind at this stage to issue a mortgage. You need to think hard about other insurance, in particular life insurance - the benefits of this are obvious, but can your wallet afford such expenses? If the bank is too insistent on this, it makes sense to contact another.

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Mortgage insurance

For the majority of Russian residents, the housing problem can be solved only by resorting to bank lending. When taking out a loan, you will be required to insure the acquired property, which is pledged, as this is mandatory and regulated by law. In addition to this, banks always offer mortgage life insurance in a company accredited by them, in case the borrower has health problems. For this reason, many borrowers are interested in the main question: is it worth agreeing to purchase a policy and how much it will cost.

What is mortgage insurance

Since the main players in the lending market are banking structures, they often put forward their own terms of the game. This usually applies to insurance. Today, banks offer borrowers to purchase a comprehensive insurance policy, which includes:

mortgaged property insurance. Acquired housing is subject to insurance for the entire period of the loan. This includes not only the building or apartment itself, but also the interior decoration. As for furnishings, they can also be insured, but a separate agreement is concluded for this.
life and health insurance. If, for health reasons, the borrower cannot repay the debt to the bank, the insurance company will do it for him. Such cases include getting injuries that caused temporary disability or disability, serious illness and even death. Provided that a person had a serious illness at the stage of concluding a loan agreement and hid this circumstance, insurance will not be paid.
title insurance. The bank can offer you this type of insurance, provided that the legal purity of the acquired property is questionable. The maximum term of the contract is 3 years, since according to the law, during this time all disputes on property rights lose their force.

Insurance allows the borrower to receive a tax deduction once a year.

What does mortgage life insurance provide?

It may seem that life and health insurance with a mortgage is beneficial only to the lender. However, this is not entirely true, since the policy protects the borrower if he cannot pay off his debts. In this case, all costs are covered by the insurance company. The insurance company can repay the debt in full, or do it monthly for the insured person. This happens when:

a long period of disability (more than 30 days);
received disability of 1 or 2 groups;
death of the borrower.

Insurance company refusal to pay

The insurance company may provide a payment if the client hid the presence of serious diseases, which include HIV, AIDS, oncology. In addition, the SC will refuse under the following circumstances:

the borrower was under the influence of alcohol or drugs;
in case of suicide, with the exception of the case of bringing to it;
if the borrower got into an accident without the right to drive a vehicle;
when committing a crime, if it is proven by the court.

Features of recognition of an insured event

Having recognized the insured event, the insurer is obliged to reimburse the debt in full, but for this it is necessary to comply with all formalities. So, if a person is on sick leave for more than 30 days, he must apply to the UK with a statement. The debt will be repaid in proportion to each day of illness. Upon receipt of a disability, an application must be written no later than six months after the expiration of the insurance. In the event of the client's death, the borrower's family can apply at any time, but no later than one year from the fact of death.

Is life insurance required for a mortgage?

Purchasing a life insurance policy with a mortgage is not a prerequisite. The bank may offer its registration on a voluntary basis as an opportunity to protect itself and co-borrowers in the event of an insured event. Lack of insurance is not a reason to refuse a mortgage loan, although the majority of the population has this kind of stereotype.

Legal regulation

You will not find in any regulatory legal act a decree that the borrower must insure his own life when buying a home with the help of credit funds. Another thing is when it comes to real estate insurance. In this case, it is necessary to refer to the federal law "On Mortgage", in paragraph 31 of which it is written in black and white that this condition is mandatory.

Bank requirements

Based on the above information, it can be understood that banking organizations do not have the right to demand life insurance for a mortgage, and even more so arbitrarily include this item in a loan agreement. The lender can only offer to buy a policy, and it's up to you to decide whether to do it or not. Another thing is that if you refuse insurance, you will be offered completely different conditions for providing credit money.

How life insurance affects the cost of a mortgage

The first thing that can lead to a refusal to purchase a policy is an increase in the interest rate on a loan. The bank may also shorten the term of the loan or ask for more money as a down payment. If you think this is illegal, you are wrong. A credit organization gives you the right to choose: to purchase a policy and receive preferential credit terms or to take money on a general basis.

Sanctions of mortgage banks for refusal of insurance

Having found out whether it is mandatory to insure life with a mortgage, it is necessary to obtain information on how much interest banks can increase the annual rate. There is no single approach to this issue, therefore, it is necessary to find out this information from each creditor separately, because the corridor between the minimum and maximum values can reach several percentage points. Here are just a few examples of how the rate will change:

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

In which banks life insurance for a mortgage is optional

If life insurance for a mortgage at Sberbank or VTB implies the mandatory purchase of a policy from the list of accredited companies, otherwise the terms of the loan will be changed, then in a number of banking institutions, when concluding a loan agreement, buying insurance is only your personal business. Mortgages without life insurance are offered in:

Globexe;
Gazprom and others.

How to draw up a life insurance contract

If you have a life insurance policy, this does not mean that you can provide it, because in an insurance situation, you or your relatives will receive the money, but not the bank. For this reason, you will have to sign a new contract, where the beneficiary is the lender. You can do this in:

insurance company;
bank.

The insurance will take effect from the moment the first installment is paid.

At the bank when concluding a mortgage agreement

When buying a voluntary life and health insurance policy with a mortgage at a bank, you will be asked to conclude an agreement with a particular company, so immediately ask to clarify whether it is possible to choose another company, because then insurance may cost less. This is due to the fact that the insurer pays the bank a certain percentage of remuneration for each concluded policy. The insurance company includes this money in the cost of the contract.

In an insurance company accredited by the bank

Not all banks accept mortgage life insurance from any company, so be prepared to collect additional paperwork that the lender needs to accept this policy from you. For the borrower, an independent choice of a company is beneficial in that he can apply to the one with which he has established long-term contact. In this situation, he can receive an additional discount.

You should not give preference to little-known organizations that, in order to attract customers, can offer very profitable options - it is better to insure yourself with a reliable partner. This is due to the fact that a mortgage is issued not for one year, but for a long period, and the company's work experience in the market is an indicator of its reliability, because many newcomers can burn out in the next year or two.

Documents for registration of an insurance policy

In order to conclude a personal insurance contract, you do not need many documents. Sometimes additional papers may be requested, but, as a rule, the list is limited to the following:

passport;
A completed application form;
mortgage lending agreement;
medical certificate.

The questionnaire can be filled out directly on the spot. It contains basic data about the client, place of residence and type of loan. The mandatory medical certificate provided must contain all seals and signatures, as well as information about the state of health and examinations carried out.

Contract time

Traditionally, mortgage life insurance is issued for a period of one year, so it must be renewed each time. Otherwise, the bank has the right to charge penalties from the borrower. Lenders do not always require their customers to renew their policy. This helps to further save money, because some insurers have a remuneration amount that can reach several percent of the amount owed.

Mortgage life insurance cost

The cost of the policy directly depends on which organization you purchase it from and on the balance of the debt, therefore, each time you enter into a new life and health insurance contract with a mortgage, the amount will be less than the previous one. If the policy was purchased at the office of the insurance company, it will be necessary to take a certificate of the balance of the debt in order to correctly calculate the amount of the fee.

If you do not know which company to choose, you can use the online calculator to help you navigate the existing offers. It cannot be said that he will give the exact price, since the final calculation will be made by an employee of the insurance company, but he will help you find out where there are more favorable and flexible conditions for purchasing insurance.

What factors are taken into account when calculating the insurance premium

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

age. Older people will have to pay more, since the risk of illness or death is higher than that of younger borrowers.
floor. It doesn't really matter, but the tariff for men may be higher because they have a shorter life expectancy than women. On the other hand, a woman may go on maternity leave and the UK will have to repay the debt. For this reason, this position depends directly on the insurer and its policies.
health status. If a person, as the extract shows, does not have serious diseases and does not belong to a risk group for health reasons, then the insurance premium for him will be reduced.
profession and lifestyle. People employed in harmful and difficult working conditions, according to statistics, live less. This is also taken into account by insurance companies when issuing a policy with a multiplying coefficient.
mortgage loan amount. The higher the amount of debt, the more insurance will cost, since they are calculated from the amount of the loan, and do not have a strictly established amount.

Insurance company rates

To summarize, you can understand that the exact mortgage life insurance rate is calculated on an individual basis, and many factors fall on it - from age and gender to health and lifestyle. However, in each case, insurers have a base value, expressed as a percentage. It is repelled from it when making calculations. Each organization is different:

What to do in the event of an insured event

When an insured event occurs, it is not recommended to hesitate and, if possible, start processing the procedure as soon as possible. This is due, firstly, to the fact that you will have to pay a penalty for delays - the insurance company will not do this, and secondly, in each case there is a deadline for submitting documents. The process itself consists of several stages:

prepare all necessary documents;
write an application for reimbursement;
transfer documents to the insurance company independently or through a bank employee;
wait for a decision and get a certificate of no debt.

Since mortgage life insurance implies that the lender is the beneficiary, the funds will be transferred to him directly, bypassing you.

Documents for reimbursement

For an insurance company, upon the occurrence of an insured event, it will be necessary to prepare a number of documents that will serve as the basis for debt reimbursement:

a completed application for payment according to the provided form;
a certificate or a copy of the death certificate, which will indicate the cause of death;
documents that confirm the right of inheritance;
documents evidencing an accident that led to illness or disability;
certificate on the establishment of a disability group;
certificate of temporary disability with an indication of its duration in days;
a certificate from a credit institution, which will indicate the exact amount of debt on the day of application.

Recalculation in case of early partial repayment of the loan

In case of partial early repayment, you have the right to demand that the insurance company recalculate the amount of the contribution, and in case of overpayment, return part of it. To do this, you will have to bring a certificate from the bank on the balance of the debt and a schedule for calculating monthly payments, which is issued upon signing the loan agreement. Here, too, it is necessary to read the terms of the mortgage life insurance contract, since in some organizations this can be done only a few times during the period of the policy, or such an opportunity is not provided at all.

Return of the insurance premium upon full early repayment of the mortgage

Termination of a life insurance contract is possible with a full return to the bank of the debt. In some cases, the UK does not pay the balance, but this is written in the contract. If such a possibility exists, it is necessary to write an application addressed to the head of the insurer 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 there are no financial obligations to the bank for a mortgage. Money is transferred by bank transfer to the account you specified.

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