Mortgage life insurance is required or not. Other important parameters. Certificates and documents required by banks for obtaining a mortgage loan

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

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

When is a mortgage insurance policy required for a borrower?

As a rule, insurance includes three types at once:

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

Life and health insurance will cost 1%.

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

If all three objects are insured, and not the mandatory minimum, the conclusion of a comprehensive contract with one insurer will cost less than separate insurance documents for each type.

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

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

What option will allow you not to overpay?

It can be seen from the table that there is no savings in case of refusal of insurance. Given that the policy provides financial protection, you should not refuse it. It is important to choose the right company and delve into all the details of the conditions.

Life insurance: what does the contract protect from?

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

1. Death of the borrower from:

• accident
• an illness that was not known at the time of insurance.

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

3. Temporary disability (for a period of more than 30 days).

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

If the package of risks as a whole is the same for insurers, then the list of exceptions varies. This should be remembered when choosing an insurance company.

Before issuing a policy, you need not only to familiarize yourself with its basic conditions, but also to study the Rules of insurance.

Reimbursement may be denied if:

• disability or death occurred as a result of the Borrower's intentional actions aimed at causing grievous injury to himself.
• the cause of the event was the use of alcohol, drugs.
• the event was accompanied by criminal acts of the borrower falling under the jurisdiction of the Criminal Code.
• the cause of the event was drunk driving or “transferring the steering wheel” of your car to another drunk driver.
• there was a suicide (suicide attempt) of the borrower in the first two years.

These circumstances must be proven by the employees of the insurance company. The payout case will definitely “stall” for the duration of the criminal proceedings, if any.

It is theoretically possible to change the standard terms of the contract, but large insurers are unlikely to do this for the sake of one new insured. Therefore, a careful selection will have to be carried out by the client himself.

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

What affects the price of insurance

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

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

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

If you have CASCO, OSAGO, VHI, ask your agent if the company can provide special conditions for a life insurance policy for a regular customer.

Mortgage life and health insurance is for the entire period of lending. But fees are paid once a year. Before paying, you should ask the bank for information about the balance of the debt (sometimes the insurer does this) so that the agent recalculates the insurance premium. Despite the reduction in the sum insured (the "body" of the loan), a reduction in the financial burden should not be expected due to the increase in tariffs caused by the increase in the age of the borrower.

But if the client has lost weight or changed dangerous work to an office routine, the insurer should be informed about this. A recalculation will be made, a new schedule of insurance payments will be formalized as an additional agreement to the contract. It is not reasonable to mislead the insurer about the state of health in order to save several hundred rubles.

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

Video. Mortgage insurance

Pitfalls of insurance payments

Surprises for the client (heirs) in the payment of insurance compensation include:

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

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

To apply for insurance you will need:

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

You can apply for a policy:

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

The last method is the fastest, but the first will be the most economical. Tariffs of "pocket" insurance companies or official partners are the highest. They contain the bank's commission for providing a client, the costs of doing business (including wages) of a broker, an insurer. But if it was not possible to resist the onslaught of the loan officer, it is important to know that the client has the right to terminate the policy and conclude in the company where the price and conditions are more attractive. Bank's refusal to accept this document will be illegal.

Important: for a year now there has been an opportunity to return money for imposed insurance in the first five days, if there is no insured event (Decree of the Central Bank of the Russian Federation dated November 20, 2015 No. 3854-U) - the so-called "cooling off period". The rule applies to mortgage insurance.

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

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

Video. Mortgage insurance. We minimize costs

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Mortgage insurance is a separate type of insurance. There are some peculiarities here that you need to know about before signing documents for a mortgage. How is a mortgage insurance policy issued? What are the conditions and how much will it all cost? All these nuances are very disturbing for a person who is little versed in insurance matters.

Do I need mortgage insurance?

If required. Before you decide to take this type of loan, you need to think through a lot in advance. Usually, the bank requires you to insure not only the housing itself, but also the life and performance of the borrower himself, because he will not take risks and will require you to pay for comprehensive insurance. So the financial organization powerfully and quite legally protects its interests.

There is a federal law regulating credit relations, “On Mortgage” dated July 16, 1998. According to it, all real estate must be insured in order to minimize risks.

Without insurance, a financial institution formally does not have the right to refuse a loan, but in practice such interest is set that a person himself refuses to take money on such conditions. The bank is obliged to give the client a choice in which insurance company he will insure an apartment in a mortgage, but you cannot refuse this financial transaction.

The amount of insurance depends on the condition of the property itself. If you decide to insure your own life, as requested by the bank, your state of health will be taken into account. There are a lot of nuances of mortgage insurance. Let's figure it out in order.

Mortgage apartment insurance. Features and nuances

What should be considered when signing a loan agreement for a mortgage? Banks that offer mortgages usually work with several large insurance companies. You, as a client, can choose any insurance organization, but still from the list of companies that the bank itself will indicate to you.

What are the other nuances? If the client refuses to pay for life insurance, bank employees have the right in this case to raise the interest rate for housing by 1%.

After completing all the documents, you can safely receive the keys to your apartment, which you take on credit. Thus, it is also beneficial for the client. He is calm, knowing that in any unforeseen situations, the insurance company will cover all the costs that the bank needs to reimburse.

All insured events for which payments are due are specified in the contract. You need to check out this list.

Types of mortgage insurance

There are several types of apartment mortgage insurance. We will consider the features of each below, and first list them:

Object of insurance;

Health and performance of the borrower;

Title of housing;

Borrower liability insurance.

Loss of work.

It is clear that the object of insurance, that is, the house or apartment itself, is insured without fail. A sudden fire or robbery and vandalism - all these factors that take place in our lives cannot be prevented. When assigning the amount of insurance, it plays a role whether this dwelling is new or old, whether it has wooden floors, wear and tear. Insuring non-standard housing, such as a secret house, will be more expensive than a regular apartment.

Separate mortgage conditions for those who take out a military mortgage. Certain benefits are provided for military personnel, and part of their loan is paid from the state treasury. Nevertheless, in this case, the military himself must pay for insurance, and benefits do not apply here.

It is better to insure your work capacity when you are in poor health or already have chronic illnesses.

Title Insurance

Let us explain in more detail what is apartment title insurance. This type of insurance is needed when there is a possibility that you will not be able to own the purchased apartment. But these are rare cases. Usually, if an apartment or house has just been built and has not yet had an owner, it is absolutely not necessary.

Such insurance guarantees the payment of a certain amount from the insurance company in the event that some documents were incorrectly executed during the execution of the sale and purchase and your purchase will be invalid by law. Funds from the insurer are received by your credit agent, that is, the bank.

How much will the insurance company pay? The agency will pay the difference between the amount you borrowed from the bank and the real value of the property. And only if you insure the received apartment for its full value, and not for partial.

The cost of such insurance is approximately 0.5% of the total amount, not more. The period of payment of insurance within the framework of the law cannot exceed 3 years.

Life insurance

The main difference between such a policy is the dependence of the rate on the age of the insured person. Also, the amount will depend on factors such as the profession of the client and the general state of his health. If the client has an extreme hobby or works in a hazardous industry, then the percentage will also be high.

You can insure for the following cases:

Temporary disability;

Disability;

Death of a client.

If the client died in prison, in a war or voluntarily endangering his life, then the insurance will be denied to the family of the deceased.

There are times when the bank of your choice forces you to sign a life insurance contract, even if you do not consider it necessary. What to do in this case? Prepare a certificate from the hospital in advance. If you bring a certificate stating that you are in excellent health and do not show up to the doctor's office, the cost of such a policy will be minimal. In addition, life insurance takes into account the age of the client. If he is under 40 years old, the interest rate in many banks is lower than in cases where the client is 60 or more years old. Therefore, when applying for this type of insurance, it is advisable to ask to make a calculation in several organizations at once and choose among them the one that offers more favorable conditions.

Mortgage home insurance cost. How to save?

In principle, you can insure housing anywhere. But in practice, this issue is very strictly regulated by the bank. If you take out a simple consumer loan, bank employees will not particularly insist on insurance. But when signing a mortgage agreement, everything is much stricter. They often choose home insurance for mortgages at VTB 24 or at Sberbank. But where is the best place? Each bank has its advantages, but also its disadvantages.

If you choose life and home insurance with a mortgage at VTB 24, you can pay off the loan not in 20 years, but in 5. At the same time, the price of insurance is reduced by 25%. There is a special program for this. However, if you choose insurance with VTB 24, you agree to pay 2 policies: for the safety of the apartment and for your own life and health.

The cost of the policy in this organization depends on which program the client chooses. The client can also choose one of the proposed types of property insurance:

1. Loss of ownership.
2. Intentional or unintentional damage to housing by third parties.
3. Risk from equity participation during the construction phase.

And will he want comprehensive insurance? For comprehensive insurance, all betting odds are reduced. It is possible to choose an insurance program directly on the official website of the company.

But Sberbank offers only one type of compulsory insurance - for real estate; yet other species are voluntary. But you may also be asked to purchase loss of title insurance. The average rate in this bank for this 2017 is 0.225% per year of the total amount of your loan obligations. But you can choose one of 19 other insurance organizations working together with Sberbank.

When calculating the cost of insurance for an apartment taken on a mortgage, the following factors are taken into account:

Your bank's requirements;

Loan amount;

Housing condition (technical specifications);

General term of insurance;

Presence of previous transactions.

You can save a lot by purchasing a policy that provides for comprehensive insurance. "VTB 24" offers to save in this way. That is, simultaneously insure all types of insurance offered by the credit institution.

But Sberbank will make a discount on the percentage if the client issues If your health and working capacity are already insured in some organization, contact it and insure housing there. You will definitely get a discount. A discount can be obtained if a person has changed the type of activity, and his profession is no longer included in the list of life-threatening ones. He will have to reduce insurance premiums when applying. If you calculate all these nuances, you can issue a policy on fairly favorable terms. But, despite all the discounts, apartment mortgage insurance is still a very costly investment.

Prolongation of the insurance contract

Insurance is paid for the entire period for which credit payments are calculated. But the contract is usually renegotiated every year. If all conditions remain the same, and the client is satisfied with the situation, the contract is simply prolonged. But when the situation changes in some way, certain changes are made to the document. For example, the client has already paid off a significant part of the loan, and its repayment period has decreased. Consequently, the amount insured will also decrease by some percentage.

Home insurance. Required documents

Of course, each organization has its own conditions, but all of them are subject to the same laws of the Russian Federation for all insurers. Documents must be submitted to the insurance company correctly. If you do not have experience working with financial institutions, then be sure to consult with lawyers.

The list of documents in most cases is the same and includes:

Your TIN;

Statement;

Signed mortgage agreement;

Passport or other documents confirming the identity;

Documents confirming the ownership of housing;

Act on the land, if you bought a house on the site.

After submitting and checking all the documents, the client pays the insurance and the first installment. It happens that it is convenient to sign a tripartite agreement. The parties in it will be your bank, you and the insurance company.

In order for the insurance company to return the money when the insured event nevertheless occurred, the following conditions must be met:

1. Bring the required documents specified in your copy of the contract.
2. Pay dues on time.
3. Notify the agency about the occurrence of an incident, if it is specified in your contract.

The insurance company has the right to refuse payment if at least one premium was not paid on time.

Insurance cost

The cost for each type of insurance is different. And each bank, of course, has its own rates and its own nuances. If you agreed to mortgage insurance at Sberbank, the cost of the policy will be lower than at VTB-24, even if you make a deal with the same insurance company.

The formula for calculating insurance includes the interest rate on the loan and the balance of the debt. Other nuances are also taken into account.

The fee is paid only once a year. But if the client, for example, has begun repairs in the purchased apartment and is unable to pay this amount at a time, it is possible to agree on its breakdown. Then the fee is divided into 4 equal parts and paid quarterly.

Insured events

The insurance organization provides for several insured events, upon the occurrence of which the bank will receive the amount specified in the contract. A home insurance policy in a mortgage in different organizations has a different cost and, accordingly, insures several possible unforeseen situations. These usually include:

Problems with water pipes (flood);

Housebreaking;

Natural disasters;

Vandalism;

subsidence of the soil;

Flooding during the rise of groundwater.

Some insurers also offer home mortgage insurance in case a plane crashes into the building. In a word, the list of insured events can be quite wide. You choose the policy that suits you. It is not necessary to pay for the entire list of insured events.

Insurance compensation

A person signs an insurance contract simultaneously with a mortgage. All conditions, including the terms of indemnification, must be specified in the contract you signed.

With regard to life insurance, the insurance must cover the entire remaining amount of the payment. If the client falls ill or is injured, due to which he cannot work, then the insurance company must pay your borrower at this time from 50 to 70% of the due amount.

Refund

If the client has already fulfilled all his financial obligations to the bank, can he get back part of the insurance, because insurance is paid at the beginning of the year, for all 12 months? If you insured in VTB, then this is possible. To do this, you just need to terminate the contract ahead of schedule, and you will be returned part of the money.

Since the last (2016) year, there is a legal opportunity to demand a refund through the court if the bank imposed some kind of insurance on you.

Welcome! The topic of our meeting today is mortgage life insurance. From this post you will learn about mortgage life insurance whether it is mandatory or not to issue it. Is it necessary to have life insurance with a 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 on this product.

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

• Real estate insurance;
• Life insurance, health;
• Property right (title) insurance.

Mortgage property insurance

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

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

Life insurance

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

Insurance companies can temporarily pay instead of the borrower for his mortgage debt, they can issue the sum insured at a time, or they can combine these two options.

The amount of the sum insured, as a rule, is equal to the debt on the loan 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 property right for no more than three years. This is the maximum "shelf life" of any property rights.

Mortgage title insurance can protect you from losing ownership of 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 for this property. Title insurance will reimburse the bank for losses and expenses related to the loss of your title.

A notable feature of this type of insurance is that you can issue a separate policy in which you will 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. In the three years that the insurance policy is valid, any ownership other than yours will be out of date.

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

Learn more about mortgage life insurance

First of all, let's understand why this insurance is needed. Life insurance 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. Let's label these risks.

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

• Death of the insured;
• Obtaining disability, but only 1 and 2 groups;
• 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 out upon the occurrence of the above insured events:

1. If the borrower has AIDS or HIV and is registered with a dispensary.
2. When committing suicide (if it is not bringing to suicide).
3. If alcohol, drugs and other substances that contribute to toxic intoxication are found 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, which is proven by the court.

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

Mortgage life and health insurance has its own characteristics in terms of the term 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. In case of temporary disability - after 30 days of continuous sick leave.

If an insured event occurred with the borrower and the insurer recognized it, then he is obliged to repay the borrower's debt to the bank. The sum insured for mortgage life insurance is the amount 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 for work based on the size of 1/30 of the mortgage payment.

It is important to know! If an insured event “disability” occurred and a payment was made on 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 temporary disability payments will be deducted from the sum insured. The insurance payment will be made only for the borrower indicated in the policy. If the insured event happened to the co-borrower and he does not have such a policy, then there will be no payment and the borrower will be obliged to make further payments on his own.

The term of insurance 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. See the section on insurance. Perhaps there is a condition under which the bank does not have the right to oblige you to insure life and health in subsequent years. This will save you a lot on mortgage maintenance.

Documents for payment

If an insured event occurs, then the following package of documents must be brought to the insurance company:

1. Application for payment.
2. Certificate of death indicating the cause (if the borrower died).
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 with the onset of disability.
5. Documents confirming the fact of disability, indicating the number of days and connection with the insured event.
6. Certificate from the bank with the amount to be transferred and details.

Documents on the insured event can be submitted through a bank employee. There is no need to stand in queues, as, as a rule, this 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 need to continue paying the mortgage in accordance with the payment schedule until the money from the insurance company is transferred.

How much does life insurance cost

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

If the borrower has a lot of weight, then the insurance company may refuse insurance or significantly increase the rate. Keep this in mind when deciding who to make the primary mortgage borrower.

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

It should be understood that you can insure life and health both in the bank itself and in the insurance company yourself. At the same time, it is very important to take a list of insurance companies accredited by the bank, each has its own list. 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 the bank is more expensive than from insurance companies. Your insurance company may have special discounts for you personally as a result of long-term cooperation within the framework of a mortgage or any other insurance.

Mortgage life and health insurance almost always acts in combination with the other two types of insurance. Below are indicative rates.

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

Online mortgage insurance calculator

To find out the exact cost of a mortgage insurance policy, fill in the data 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, the construction of the apartment and the title. After the calculation, you can apply for a policy online.

What if you opt out of mortgage insurance?

Is mortgage life insurance required? No, this is a myth: no bank has the right to impose this service on you. But, as always, there are pitfalls. Of course, you can opt out of insurance, but then the mortgage rate can rise by 3% or more. Agree you need to calculate 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 opportunity to work for 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 borrower or his relatives will receive the money, and not the bank, and it’s not a fact that this money will go to pay off the mortgage, which is why banks require mandatory life and health insurance, and make the bank the beneficiary of the policy.

Here are the approximate sanctions of the main mortgage banks when 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 mandatory life insurance. This is an indispensable benefit factor when choosing a bank. the insurance premium for the entire contract will be quite significant. Banks that do not require compulsory life insurance - Gazprombank, Globex.

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

We look forward to your questions and comments. Subscribe to updates and press the buttons of social networks if the post was useful.

When calculating the cost of mortgage lending, it is necessary to take into account the commission of the bank, the services of an appraiser and the cost of insurance.

Of course, additional spending does not cause much joy. Any borrower will not want to pay where you can save.

Do you need mortgage life insurance? In case of refusal, the bank “threatens” with an increase in the rate on the loan. And is it worth it to win a few thousand on contributions, because to guarantee health and no fatal circumstances, alas, no one can.

We will figure out whether it is necessary to pay insurance to the borrower.

Moreover, there are three of them:

What to insure?	Mandatory or not?	Peculiarities
1. The walls of the apartment	Mandatory by law	1. Finishing and doors, plumbing, and furniture are not included in the policy. 2. A policy for new housing is issued after receiving documents for a finished object.
2. Life and health of the borrower	Voluntary: Borrower decides whether to take out a policy or not.	1. The policy is issued at the time of conclusion of the loan agreement. 2. If there are several co-borrowers, each must insure his own life.
3. Title (rights to the apartment)	Voluntary type of insurance.	1. Not needed on the "primary" It will help if the apartment is “with history”, and the previous owners sold it in violation of the law. 2. The old owners can appeal the deal within the next three years. For this period, you need a policy.

Summary. On the first point, the borrower has no choice. The second and third are worth considering. The concept of "title" is disclosed in the table, but what does mortgage life insurance imply?

A mortgage agreement is most often concluded for more than one year. Anything can happen to a borrower over a long period of time. The bank will not take into account these circumstances.

Money must be returned according to the schedule, to the debtor or heirs. A client without a policy and his relatives will be left alone with the problem.

A protected borrower (heirs) can count on assistance in the event of the following events:

In order not to increase late fees, you need to make payments on time while collecting documents on inheritance, disability, etc.

You can also opt out of life and health insurance. But given the term of the loan, it is reasonable to take out a personal insurance policy.

How to get life insurance without overpayment or get a refund?

Large banks open their insurance companies. For example, Sberbank got its own insurer, Sberbank Insurance. Whose policy will be offered when drawing up a loan agreement, it is unnecessary to explain.

Convenient for business: money revolves within the same structure. Convenient for the client: the principle of one window operates.

But there are some downsides:

• The policy here is often more expensive.
• All eggs in one basket. The insurer, who is responsible for his finances to the bank, himself depends on the credit institution.
• It will take many years to insure your mortgage. Is it convenient to visit this branch every year?

In addition to "pocket" insurers, the borrower learns that there are accredited insurance companies. Mortgage can be insured only in organizations approved by the bank.

We already wrote in one of our articles about.

It is worth listening to the opinion of the bank: it checked the reliability of the insurer. But the client has the right to choose the company where it is cheaper, whose insurance program suits more.

Three tips:

1. If you already have a policy at the time of lending? Contact the insurer, he will change the terms of insurance. The bank must be the beneficiary.
2. If you change your mind about insurance. The law provides for a "cooling off period". What it is? Within five days of registration, the client can return the money for the policy if there are no insured events. But the bank will most likely raise the loan rate by 1-2% if the borrower refuses to insure life.
3. If you decide to change the insurance company? For the fuss when obtaining a loan, the borrower did not compare how much the policy costs from different insurers. And when I found a calculator on the sites and calculated the cost, I realized that I was in a hurry. The client has the right to terminate the insurance contract and conclude it elsewhere. The bank must be notified of this.

How much does a policy cost and what does it depend on?

How much is insurance? Life insurance rates start at 1%. But this is the “average temperature in the hospital”, since the size of the premium is affected by:

• Information about the borrower in the questionnaire of the insurer.
• Sum insured. The larger it is, the more expensive the insurance.
• Availability of policies for other types in this company (discount for regular customers).

The table shows the average tariff rates of popular insurance companies:

insurance organization	Tariff rate
Alpha Insurance	0.24
VTB Insurance	1
Ingosstrakh	0.5
RESO	0.5
Rosgosstrakh	0.5
ROSNO-allianz	0.19
Sberbank	1
Sogaz	0.17

Using the diagram provided, you can visually familiarize yourself with the tariff rate:

If you can choose the insurer and the conditions, then you need to answer the questions of the questionnaire with the utmost honesty. Perhaps the conditions will not be the best, but the company will not have a reason to refuse because of false information.

What the insurer wants to know about the client:

1. Personal data.
2. Field of activity.
3. Passion for extreme sports.
4. Medical issues (from height, weight, bad habits to the life expectancy of relatives and the date of the last sick leave).

Video about life insurance in any insurance company:

Sometimes they ask to be examined, the tariff will increase if:

• The client is overweight;
• Have hereditary or chronic diseases;
• Elderly age;
• Dangerous profession;
• A combination of these and related factors.

By the way, the cost depends not only on age, but also on gender: insurance for a man will cost more than for a woman. If other conditions permit, it is wise to make the main borrower a woman or someone younger.

Conclusion of the contract: we collect documents, read the conditions

An example of a health insurance contract

Life insurance contract, what to look for:

1. Term: the agreement is valid for the entire loan period, but payments are made annually.
2. Territory of insurance: the whole world.
3. Exceptions to payments: these will be discussed below.

The amount insured decreases along with the debt to the bank, and with them the insurance premium. Bad news: the rate during this increases due to the increase in age, so the difference in contributions from year to year may not be felt.

To conclude an agreement, you need:

• Application form (to be printed on the spot);
• Contract of sale or equity participation (copy);
• They may ask for a certificate stating that the client is not registered with a psychiatrist.

Photos of documents:

Useful video:

Payments: what you need to be prepared for

There is a list of events that will release the insurance company from the obligation to pay:

• If harm to health, life was caused at the time of committing unlawful acts (including drunk driving);
• The event was due to a suicide attempt, war, nuclear energy;
• The event is caused by a disease already present at the time of conclusion of the contract;
• Harm to health, life caused for the sake of obtaining insurance (the fact must be proved by the insurance itself).

In order for the refund to go smoothly, you need to:

1. Notify the insurer and the bank about the event;
2. Contact the doctors, and if necessary, to the commission for obtaining a disability;
3. Collect documents;
4. Keep paying your mortgage.

The list of documents will be announced by the insurance expert. It usually includes:

Statement	The form will be provided by the insurer.
Insurance contract, policy and receipts	Copy from client instance
	Copy
Documents about the circumstances of the incident	Received by the client (heirs): police protocols, an act of an accident at an enterprise, a death certificate of the insured
Medical documents	Taken in a medical (social) institution: a bulletin, a certificate of disability, an extract from a medical card
Information about the amount of debt	Issued at the bank

Let's summarize: The bank will definitely require to insure the apartment, the borrower has the right to refuse other types of insurance. In this case, the loan rate will increase in most banks by 1-2%. There are exception banks (Gazprom does not require health and life insurance), but they are few.

The insurance rate starts from 1%. The client has the right to look for a cheaper option. The antimonopoly legislation will not allow limiting his choice.