When applying for mortgage lending, one of the main conditions of almost any bank is the execution of health and human life insurance. If a bank client refuses to prepare this paper, the interest rate per annum can be significantly increased. Therefore, it is much more profitable to go on the terms of the bank. However, this raises the question: "Where is cheaper comprehensive mortgage insurance?". Is this a prerequisite? Which company is better to contact?
Is it mandatory to take out health insurance
Before filling out loan obligations with a bank, it will be useful to find out what things need to be done and what procedures can be legally abandoned. For example, it is not necessary to draw up a policy that will guarantee that he will not be able to repay the loan in the process of the borrower's painful condition.
It is also worth considering that no credit institution has any legal right to impose such a service. Accordingly, any borrower has the right:
- refuse to take out insurance;
- agree to these terms;
- conclude an appropriate agreement, but terminate it unilaterally immediately after he receives a loan.
The latter option is not a scam, as these are legal actions by a citizen who wants to get a loan.
However, it must be understood that without insurance in the event of default on the loan, all legal costs will be incurred only by the borrower. This can be avoided. If the insurance is formalized, then financial claims will be presented to both the insurer and the borrower. Therefore, it helps to protect yourself from unnecessary financial costs in case of emergency.
Based on this, it is recommended to choose where mortgage insurance is cheaper and what conditions the UK offers.
How to get insurance?
There is nothing complicated in the design of this document. As a rule, company representatives independently prepare all the documents for the bank. Therefore, the borrower can only choose where cheaper comprehensive mortgage insurance and bring the necessary paper there.
In order to conclude a deal with an insurance company, it is enough to provide a passport, documents confirming the ownership of real estate, and a cadastral statement. Some medical certificates are also required. Most often, insurance companies require documents from drug treatment and psychiatric dispensaries. In addition, the representative of the UK may require additional documents at its discretion.
13th insurance payment
When registering any insurance obligations, it is necessary to take into account the period during which the agreement will be valid. Accordingly, according to standard conditions, it is expected that insurance obligations between the company and borrowers will be completed one year after signing the contract. During these 12 months, if the bank client considers it necessary, he can conclude a new agreement or extend an existing contract.
It doesn’t matter where mortgage life insurance is cheaper, the conditions will be the same.
It should be borne in mind that after a year the insurance contract must be reissued or extended for another 365 days. However, in any case, the service will have to be paid again.
Insured event
In any case, it is recommended to avoid situations that may fit this definition. If this still happened, then it is best to contact the insurance agent as soon as possible and inform him of the incident. This will help to avoid a significant increase in commission or debt on funds taken from the bank.
If an insured event occurs, then the insurance company takes all the costs associated with mortgage lending.
In addition, experts recommend informing the bank in the event of such situations. The fact is that this information is not displayed in banking databases. It is very important that the insured event is documented. For example, if we are talking about a citizen’s incapacity for work due to his health, then this fact must be confirmed by an appropriate certificate from a medical institution.
What nuances are worth paying attention to?
When deciding where it is cheaper to take out mortgage life and health insurance, it is worth considering that in the process of drawing up these documents each borrower can decide for himself what amount he wants to insure, and also those cases in which he plans to use this certificate . However, there are general provisions that apply to all insurance companies.
These include the fact that any contracts are concluded for a year and can only be extended or renegotiated. Moreover, each of the parties has the right to independently terminate the signed contract and demand reimbursement of part of the money.
What is life insurance for?
As mentioned earlier, insurance is not a prerequisite that absolutely all borrowers who want to get a mortgage must follow. However, if a potential client of the bank refuses to insure their life, then most likely the loan rate will increase markedly. This is also an absolutely legal act.
As a rule, the rate rises by 1 percent. Therefore, if you make all the calculations, it becomes obvious that it is much more profitable to insure your life than to refuse this service and pay extra interest annually. It’s better to overpay at the beginning and secure your finances.
Therefore, it is worth discarding all doubts and looking for where it is cheaper to arrange mortgage insurance. This procedure does not require much time.
What problems can life insurance solve?
When concluding mortgage lending, clients are usually given a rather long period of time to pay the borrowed funds. Sometimes in such situations, the client may die during this time. Also, insured events include disability, which entailed a disability of group I or II.
In this case, the insured person does not receive any payments. The entire amount of his insurance goes into the repayment of loan obligations. This sounds unprofitable, but it's worth looking at the question from the other side.
Thanks to such insurance, a number of problems can be solved. For example, in the event of the death of a client, his heirs will not have to pay the remaining amount on a loan taken by their relative. If a person has lost his ability to work and received the status of a disabled person, then partial or full repayment of mortgage lending is carried out at the expense of the UK.
How much is insurance?
Of course, everyone wants to find where mortgage life and health insurance is cheaper. Based on this, it is worth considering three options for processing this transaction:
- on real estate;
- on health and life;
- own rights or title.
If it comes to applying for a mortgage, then in this case the cost of obtaining an insurance certificate for real estate will be 0.09-0.77% of the total amount of the loan received. If a residential building is insured, it is pre-made.
Life and human health insurance will cost about 0.1-5% of the amount of the proposed loan.
This variation in percent depends on many factors. First of all, the borrower’s age and the presence of chronic diseases are assessed. It also takes into account where a person works. If the borrower is fond of extreme sports or prefers dangerous hobbies, then the cost of the insurance certificate increases. The list of risks is quite extensive. However, it is not worth hiding important information from the insurance agent, since all the facts will still be discovered.
It's time to study the list of the best UK according to reviews, where mortgage insurance is cheaper.
Sberbank Insurance
In this case, insurance is possible for property whose value does not exceed 15 million rubles. The cost of the policy is 0.25% of the residual value of the debt. Accordingly, each year the price of the certificate will decrease.
In order to insure life and health, you will have to pay a little more. However, many customers who were looking for where mortgage insurance is cheaper left conflicting reviews for Sberbank. On the one hand, the rates are quite favorable, and on the other, the bank literally imposes this service.
VTB Insurance
This company offers comprehensive insurance, which includes three forms of transaction at once. Moreover, the contract is concluded between the borrower and the insurance company for the entire loan period. However, annual renewal of the certificate remains mandatory.
If we talk about where mortgage insurance is cheaper, then you can get a policy at VTB at a cost equal to 1% of the total amount of a bank loan. After that, the percentage changes downwards depending on the residual debt on the loan.
RESO
This company is a partner of several banks at once, for whose customers special conditions are provided. If a person wants to take a loan from Sberbank, then life and health insurance will cost 1% of the loan amount. In order to protect the property you need to pay 0.18%.
In addition, there are special conditions for customers of VTB, Absolut and Raiffeisen banks comprehensive insurance will cost 1%. To obtain a property policy, only 0.1% is required.
Based on this, if we talk about where mortgage insurance is cheaper, then RESO is one of the best options.
Rosgosstrakh
This company primarily takes into account the gender of the borrower. For example, for women who are clients of Sberbank, the cost of health insurance will be 0.3%. Representatives of a strong half of humanity will have to pay twice as much - 0.6%. Mortgaged property is insured at the same rate for both sexes - at 0.2%.
If the borrower is a client of another bank, then the cost of the certificate will be slightly different. For example, men's health in that case is estimated at 0.56%. Women will be able to pay only 0.28%. To insure real estate, you will need to pay 0.17%.
Based on this, if we consider where mortgage insurance is cheaper, it becomes obvious that in Rosgorstrakh it is more profitable to insure customers of all banks except Sberbank.
What to look for?
Before you take out insurance, you need to clarify a few nuances. First of all, it’s worth repeating once again that imposing the services of insurance companies is not a legal action on the part of the UK or a credit institution. The bank has the right only to increase the interest rate in case of refusal of the client to provide him with an insurance policy. In all other situations, he cannot be denied service.
Also, when choosing where mortgage insurance is cheaper , it is worth considering that many insurance companies are quite far away. At first glance, the relationship between the location of the insurance company of the bank itself may seem insignificant. However, it should be borne in mind that this distance will be responsible for raising or lowering the tariff rate. The fact is that money and other documents are sent by vehicles, accordingly, the cost of gasoline and maintenance for the driver will be taken into account.
Nevertheless, even if you find a place where mortgage insurance is cheaper, it is worth considering that in a year the owner of the insurance has the right to change his tariff and renegotiate a new one. He is not required to adhere to the same conditions throughout the entire term of payments on loans. In this case, the company also does not have the right to impose certain tariffs.
Very often, representatives of insurance companies, explaining where mortgage insurance is cheaper, offer to issue an accident insurance policy. However, you need to understand that this service is only needed by the bank, in this case there is no benefit to customers. Therefore, it makes no sense to take out accident insurance.
To be sure of the organization to which the citizen applied, he is recommended to check the size of the authorized capital of the company. This amount should be more than 300 thousand rubles. This will ensure that in the event of certain events, the company's customers will definitely receive their money. All this information can be clarified from official sources. It is also worthwhile to find out if the license to carry out this activity has been revoked from the selected organization.
In addition, the UK is obliged to provide its customers with a license. If for one reason or another, representatives of the insurance company refuse to do this, but this may indicate that it is not worth cooperating with this dubious office. It will also be useful to clarify the latest operations that were carried out in the company. Thanks to this, it will be possible to find out whether there was a decrease in payments for payers.
It is also worth carefully studying the proposed contract. Although this document is not a loan confirmation, there is a risk of fraud. Therefore, in case of questions regarding certain points of the contract, it is necessary to clarify all doubtful points.
Today, insurers use the so-called aggressive advertising. But you need to understand that any kind of insurance (even travel insurance) is not required to conclude a transaction. Therefore, the client has every right to decide independently whether he wants to receive such a certificate or not. Perhaps he would prefer to overpay on the loan.