Today, many people take loans and become borrowers. They want to choose the most reliable and largest bank in the country. Together with the service, employees oblige to purchase credit insurance at Sberbank.
Client Rights
Some borrowers do not understand and are not interested in the essence of the service itself and agree to everything. Is Sberbank loan insurance obligatory? Not all loans must be accompanied by compulsory insurance. Usually, employees say that when they refuse insurance, the bank will not approve the loan. Also, the employee may not warn about the existence of insurance. He provides documents on credit and insurance and asks the client to leave signatures in the indicated places. The client signs everything and does not read the conditions. Thus, he voluntarily signs a consent to credit insurance at Sberbank.
Before signing all the documents, the borrower must know that the disagreement to purchase the product is not a reason for refusing to grant a loan. If the client nevertheless signed a loan insurance agreement with Sberbank, then he may terminate it in the future by writing a statement. Only you also need to be careful when filling out the application for termination of the contract. There are two types of applications in banks. One of them states that upon termination, the client refuses to receive a cash bonus. Thus, the contract will terminate, but it will not return the money for insurance.
Mortgage
Mortgage insurance at Sberbank is a prerequisite. But in this area of lending, there are several types of insurance. Moreover, some of them are a prerequisite, while others have a voluntary beginning.
The legislation of the Russian Federation established the obligation of each borrower to insure property purchased on credit. This insurance is beneficial to both parties. Since in an insured event (for example, a fire), the bank will receive money from insurance and cover its expenses. And the borrower will not have to pay a loan in the future. But employees also offer voluntary credit insurance at Sberbank, motivating people that interest will decrease upon purchase, and the likelihood of consent to the issuance of funds will increase. But before you agree to additional conditions, you need to calculate everything in advance. Sometimes insurance may be included in the cost of the loan. And then on the insurance, as well as on the loan, additional interest will be imposed. And overpayment in this case will be colossal.
Before choosing insurance, you must familiarize yourself with all the conditions. To do this, ask various questions to the employee. You can also ask for contract terms.
Mortgage Insurance Types
There are several types of mortgage insurance in Sberbank. But only one of them is mandatory.
- Real estate. This insurance is required. No bank will give a loan without real estate insurance. When obtaining a loan at Sberbank and the need to insure property, you can use the services of insurance companies. But before you buy insurance, you need to find out from the employee a list of allowed companies. Sometimes Sberbank independently insures its customers. Also, before buying an insurance contract, you need to find out about all the possible risks and exceptions. Typically, the main risks are the complete or partial destruction of property as a result of natural disasters, fires, explosions. The beneficiary in this case is the bank. Typically, the insurance policy is equal to one year. Payment of the premium occurs at a time, installment plan is not provided. The insurance amount of the contract will be equal to the amount of the loan. And every year the amount will decrease, respectively, and the premium will also become less. The cost of insurance in 2018 is calculated at 0.25% tariffs. In order to make a preliminary calculation, you can use the calculator on the official website of the bank.
- Mortgage life insurance at Sberbank. This type of insurance is usually imposed by bank employees. Typically, life insurance is intended for the death and disability of the borrower. This policy can be useful for the client as well, since a mortgage loan is a long-term contract. And much can happen during its course. If the borrower dies or fails to pay due to health reasons, such insurance will help pay off the debt, and he will not go to the next of kin. But insurance for the entire duration of the mortgage is a huge overpayment, so it is better to look for a policy with the lowest rate or refuse. If this insurance is rejected, the bank will add another percentage to the loan. Also, before deciding to purchase life insurance, you need to familiarize yourself with the risks. Sometimes employees say that the client will have life insurance. But what will she be insured against? Under the terms of the contract, situations will be described in which a person receives a payment and can close the loan. These risks may be unlikely. And if misfortune happens to a person, it may not always be covered by insurance. Therefore, it is worth checking all the conditions and pitfalls before signing life insurance contracts with a loan from Sberbank.
- Title insurance. This insurance is optional. It is necessary in case of loss of rights to purchased housing. Usually this type of insurance is purchased for apartments in the secondary market. It is necessary if suddenly new homeowners appear or any errors become clear when concluding the contract. The rate for this type of insurance will be approximately 0.5%. For example, if the amount of the apartment is equal to 2,500,000 rubles, then each year the client will need to pay approximately 12,500 rubles. This insurance may be most beneficial for the client, since the insurance company will pay for the debt in the future.
- Integrated type of insurance. Most clients like this type of insurance, since there is an opportunity to get protection for the most risks, while paying less. When making insurance at Sberbank, the rate will be 1% of the loan amount. Also, the likelihood of approval of a mortgage will increase.
Change in loan conditions without voluntary insurance
If the client is notified that the insurance is voluntary, then bank employees will not be able to force them to buy. But the bank may not approve the loan. And they can refuse, without voicing the real reason, but refer to other problems of the client. If the bank approves the loan, then its conditions will become the most stringent.
For example, changes will occur in the amount of the interest rate - it will rise by at least one percent. Also, the lender can tighten the terms and require a large amount for the down payment on the mortgage. By such actions, the bank will try to protect itself from possible costs.
Cancellation of insurance
Since only property is subject to compulsory insurance, many customers will want to refuse other types of contracts. If you could not refuse additional insurance, then you can try to do it after the acquisition. To do this, you need to send a request letter to the creditor and the insurer partner (or go to the company’s office and write a statement there). If they are followed by a refusal, then you can go to court.
Before deciding to terminate the contract, you must carefully study the insurance contract. Often companies draw up contracts so that it is impossible to terminate them in the future or without a refund of the money paid. Sometimes, the contract indicates the conditions under which you can terminate the agreement and receive cash. For example, a contract can be terminated within five days after its signing.
Refund for insurance
With credit insurance at Sberbank, how to return money? The legislation of the Russian Federation states that the borrower has the right to return the money if there are no violations in payment. Moreover, a refund can be made if the contract did not have conditions on this account.
The amount of the refund will depend on how long the contract was in effect. For example, if there are eleven months left before the end of the contract, the borrower will receive the full amount. If less than six months remain before the end of the contract, the amount is not refundable. The sooner the policyholder contacts the company, the more likely it is to return the funds.
Positive and negative sides of mortgage insurance
Mortgage insurance has positive and negative sides. The advantage of insurance is protection against insured events. If at the time of the contract there was a case that came under the risk of the contract, the policyholder will be able to receive money and pay off part of the loan debt. For example, during a disability, this service will be a salvation from debts.
The negative side of the contract may include the cost of the policy. Often, it exceeds the increased rate. An accident may also occur with a borrower who is not an insurance. And accordingly, the insured will have to continue paying for the loan and for the insurance contract, although he did not help.
Often, after purchasing insurance, borrowers think that they are insured against everything. This erroneous information arises due to the fact that employees do not show a list of risks. Thus, policyholders remain in the dark.
Consumer loan insurance at Sberbank
Insurance of loan agreements is carried out voluntarily. There are a number of risks in which Sberbank may insure its customers:
- Disability of the first group.
- Temporary disability (the cause of this disability is important).
- Accidents resulting in death.
- Leaving life.
Insurance when obtaining a loan at Sberbank has become commonplace. But customer contracts may vary. It is worth noting that in each contract there is a number of risks. For example, temporary disability due to an accident. If a person becomes disabled due to illness, then there will be no payment.
There are certain conditions for loan insurance at Sberbank. Persons who have suffered serious illnesses are not accepted for insurance. The age of the insured person is 18-65 years.
The cost of insurance will be included in the loan. You do not need to pay extra, but you also need to make a monthly payment.
The validity period of the insurance agreement is equal to the loan term. The terms of the contract begin on the fifteenth day after signing the document. The tariff and premium will depend on the risks involved. The more risks, the more expensive. Typically, the tariff rate varies from 0.24 to 1.7% per month.
Insurance Benefits
The benefits of insurance for the bank are clear. An expensive service is the arrival of additional funds in the company, as well as the reduction of risks.
The benefit for the insured is that in the event of an insured event, he will receive reliable protection. For example, in case of long-term disability, the insurance company (or the bank itself) will pay contributions. Therefore, the acquisition of an insurance policy becomes the most profitable.
Positive and negative sides of insurance
Contracts have their pros and cons. Before you agree to purchase a policy, you need to analyze them.
Positive sides:
- the policyholder, along with the policy, acquires protection in unforeseen situations;
- the bank will provide preferential credit conditions and may lower the interest rate;
- the policy applies throughout the country;
- in case of disability, the insurance company may make monthly payments instead of the borrower;
- Some insurance providers offer online medical advice.
Negative sides:
- The main disadvantage when insuring a loan at Sberbank is the cost of the policy itself (often the price of the policy is included in the body of the contract, thus, interest is added to the insurance, which significantly increases the premiums).
- The insurance cannot cover from everything, there are several risks from which the insured will be insured (not always his accident will become a risk under the contract).
- If the borrower decides to pay off the debt ahead of schedule, then a refund for insurance is not always possible. Most likely, there will be a loss of cash.
Conclusion
Before choosing credit insurance at Sberbank, you need to familiarize yourself with the list of insurance companies, find out the terms of their contracts and evaluate the cost of the policy. The cost of the insurance contract may not be the same for all insurers, as well as the terms of the agreement. After reading all the conditions, you can choose the most profitable contract for yourself.