Mortgage life and health insurance

When drawing up a mortgage agreement, customers are offered to take out life insurance, since the document is concluded for a long period. Thanks to this service, the debt will be paid to the bank, even if the borrower is unable to do so due to health reasons. Before concluding a contract, it is necessary to familiarize yourself with the features of its execution, with the cost and legality.

Do I need life and health insurance for a borrower with a mortgage?

First you need to make sure why the borrower needs insurance. It is needed to protect against the risk of non-payment of the loan due to health problems. This may be due to disability.

But no one can predict whether injuries may occur during the payment of the mortgage, due to which partial or complete disability is recognized.

Therefore, banks offer to draw up an insurance contract in order to protect themselves from the risks of possible non-payment. If the borrower has such a policy, then in case of disability, the company that provided the services repays the loan. In the event of an insured event, the bank's client will not pay the mortgage amount.

Insurance cost

Each insurance company has its own prices for services, so it is difficult to determine the exact price.

Approximately the following rates apply:

The tariff is set not only on the gender and age, but also on the health status of the client. Usually it is required to be examined by doctors, which determines whether there are chronic diseases. If yes, then the price of insurance will be higher. In the presence of complex ailments, mortgages are usually denied.

Occupation affects the cost of insurance. If the client works in the office, then there will be no price increase. But for risky professions, an inflated cost is provided.

If the client had previously voluntary insurance, then when applying for a loan, you need to provide a document. When concluding comprehensive insurance, which includes the protection of life, pledge, title, the price of services will be lower. Payments on it are counted together with the debt, and every year they become smaller.

Where can I get an insurance policy?

To date, there is no such thing as accreditation of an insurance company with banks. But they are subject to the same requirements. When obtaining a mortgage, the borrower is offered to use the services of one of the insurance companies. The bank receives a commission for each executed agreement.

If the borrower has insurance, when obtaining a mortgage, he may require the use of the services of his insurance organization. You can find a bank where such a document will definitely be accepted. For this, an agreement is drawn up with the insurer in order to introduce a new beneficiary - the bank.

Therefore, the borrower does not need to look for an insurance company. When applying for a mortgage, the bank offers a list of its organizations that provide services.

You just need to choose the conditions that suit you, and you can take out insurance.

Documents for registration of insurance

In banks, registration is carried out quite quickly.

The client needs to prepare the following documents:

If the client provides a medical certificate of health, which is certified by the seal and signature of a specialist, then it affects the amount of insurance payments. Every person has the right to claim low interest. You should always remember about personal rights, carefully fill out the documents.

When the first installment is paid, the borrower receives an insurance policy. Payments can be made in cash or by transfer, through guarantors. The cost of insurance is calculated from various factors that must be taken into account when a client contacts the bank. It is always necessary to read the contract, and ask specialists about incomprehensible things. A properly drawn up document will guarantee the occurrence of possible risks.

What to do if an insured event occurs?

In the event of an insured event (dismissal, illness), the borrower must familiarize himself with the contract. If he died, then this should be done by relatives. Then you need to contact the insurance company, sending a notification there. Usually a short period is determined during which the borrower can apply.

After that, the company offers to prepare the necessary documents, which determine whether the insurance company will repay the mortgage or not. The fact of an insured event is determined by the company, for which it performs a check.

Documents are provided as evidence of the insured event. If a dismissal occurs, then it is necessary to provide an order, confirmation from the employer, a work book. With the assignment of disability, the borrower will have many documents confirming this fact.

The insurance company checks the documents and then decides whether to pay compensation or not. The beneficiary is the bank in favor of which the money is paid. In the event of an insured event, the borrower is released from repaying the loan. With the use of this instruction, the rights under insurance are exercised.

Refusal of the insurance company from payments

All payment terms are specified in the contract. It indicates the amount of the amounts that are due upon the occurrence of an insured event. At the same time, not only the insurer has obligations, but also the insured.

If there is a refusal to pay, then these grounds are justified. Compensation can be provided no earlier than all documents are collected. This must be done by the insurer.

If compensation is needed in connection with the deterioration of health, then you need to collect the necessary medical certificates. They will be the confirmation on the basis of which payments are made.

Some companies refuse to pay compensation. For example, the accident was not recognized as an insured event.

Reasons for rejection can be:

• justified;
• unreasonable;
• conditionally justified.

The former are legal because they do not infringe rights. Incidents not specified in the contract are considered grounds for refusal. In the second case, there is a violation of insurance rights. Then you have to go to court. Usually the decision is made in favor of the client. Conditionally justified reasons are those for which there is no clear definition in the law.

Not everyone goes to court, and this is due to several reasons:

• lack of time;
• collection of many documents;
• ignorance of rights.

Before filing a claim with the court, you should contact a lawyer who will help you choose the best solution to the problem. The specialist will allow you to correctly draw up an application so that it is accepted immediately. It indicates the violations due to which the appeal is drawn up. You have to rely on the law. The amount of the claim is established by expert estimates. The client has the right to demand compensation for state duty and other expenses. If the decision is made in favor of the client, the company will pay him a penalty for the entire period of delay.

Can I opt out of insurance?

All banks take into account their rights. Therefore, each client is invited to take out mortgage insurance. He has the right to refuse it within 14 days, which is prescribed by law. But should it be abandoned?

Without taking into account insurance, the bank may not issue a mortgage or increase the percentage. In the second case, you will need to overpay about 2% per year. In addition, insurance protects against many unforeseen situations.

How long does mortgage life insurance last?

The property is insured for the full period of the loan. For life and health, this document is also valid for the entire period. Title insurance is concluded for 3 years, since such a limitation period is established by law.

Life and health insurance is a useful service for which the client pays himself. In this case, he is protected from many situations. And whether it is worth formalizing it or not, it is up to him to decide, since no one has the right to force him to do this. If you still want to take out insurance, then you need to familiarize yourself with the document. All conditions must be clear.

Dmitry Balandin