Life insurance is the protection of a person’s property interests related to his life and death. This is a long-term and cumulative type of investment. This service is offered on the market not only by professional participants, but also by credit institutions, in particular Sberbank.
About company
LLC IC Sberbank Life Insurance was founded in 2014. This is a subsidiary of PJSC Sberbank, which specializes in the protection of property rights. At first, the company offered cumulative and investment life insurance projects, and then voluntary programs for protecting the health of citizens appeared.
Today the company is one of the three leaders in the market. For 9 months of 2015, the volume of premiums received amounted to 30 billion rubles. Of these, 18 billion rubles. collected on long-term funded and investment insurance. Reserves and assets amounted to 55 billion rubles. and 63 billion rubles. respectively.
Insurance company Sberbank Life Insurance offers its customers protection services:
- any property of individuals and legal entities, except for vehicles and agricultural machinery;
- civil liability;
- entrepreneurial risks;
- financial risks;
- from accidents;
- health insurance.
Scheme
The movement of funds in the life insurance system in a simplified scheme can be represented as follows.
The policyholder makes a monthly payment based on the terms of the insurance contract. The company undertakes to invest these funds for 10-20 years in order to receive an annual income of 14-17%. It is important to understand that the promised remuneration is calculated not by the compound interest formula (i.e., with capitalization), but by a unique technique that is known only to the insurer.
The funds received first fall into the reserve, that is, they are invested in a bank deposit, in property or shares. Of the earned profit, the insurer leaves about 15-20% for all its expenses, and transfers 80-85% to the client.
In general, investment and endowment insurance is not designed for profit. These products are intended to provide financial assistance in case of health problems. Accumulative insurance programs cover the following risks:
- survival until the end of the contract;
- death (for any reason);
- Disability of the first group.
Tariffs for this product vary within 5-10% of the payment amount. They depend on age (the older the insured, the greater the risk), gender (women live longer than men), the set of risks for the selected program (only death, surviving to retirement, getting a disability group).
Credit insurance - a relevant product on the market
Since 2014, Russians have the opportunity to opt out of consumer credit insurance. It is not profitable for banks to increase the rate on loans issued, since it will affect the cost of the loan. The higher the last indicator, the lower the level of capital adequacy. Although under the law the existence of an insurance policy is not a prerequisite for issuing a loan, in practice it is very difficult to refuse it.
With the introduction of amendments to the law on consumer credit, the number of complaints about imposed insurance decreased. From one policy sold, the agent bank receives 50-70% of the cost. This is a significant source of income. Therefore, it is not surprising that professional market participants are in no hurry to return funds for life and health insurance. Sberbank and other large credit institutions still comply with the terms of the transaction. But the timing for making decisions is different for each bank.
Within two weeks after signing the contract, the client has the opportunity to terminate it unilaterally without loss of investment. This service is available to users of investment, savings and box products. Such rules apply at Sberbank Life Insurance. An application is accepted only in writing at a branch of a financial institution. But statistics show that there are not many people who want to terminate the deal - only 3%. This is primarily due to problems that a client may have in case of an insured event. The second reason is that customers late contact the company with such a statement.
Why it happens?
Sberbank Life Insurance Company, like any other professional market participant, can return the entire amount paid to the client only until the contract comes into force. Otherwise, the insurer will have tax consequences. The only way to avoid them and at the same time comply with legislative requirements is to postpone this moment. The client enters into an agreement, pays for the policy, but the service starts to work after some time.
The situation in the insurance market
Clients of HCF Bank can also return the funds paid for the Home Credit Insurance, Renaissance Insurance or Regional Insurance Company insurance policies. If the client changes his mind within 30 days after the conclusion of the contract, then he can get 100% of the cost of insurance. Funds are returned to the account and immediately sent to repay the loan. For insurance policies not tied to loans, money is not refundable.
A similar service is offered by Promsvyazbank and Binbank. But in both credit institutions the share of return on funds is small. Alfa-Bank is only getting ready to add this clause to voluntary insurance contracts, but at the same time it is going to give the client 14 calendar days for thought. But VTB 24, SSB, Bank of Moscow, and Khanty-Mansiysk Otkrytie do not at all consider such an option.
The minimum percentage of refusal of credit insurance is the norm. In the context of growing requirements for borrowers, a decrease in demand for loans, this option can attract new customers. The “Cooling period" is provided by banks whose loan interest rate does not depend on the availability of a policy, and for which commissions on the sale of insurance are not the main source of income. This option will improve the image of both the bank and the insurance company, since it reduces the likelihood of claims.
Sberbank: mortgage life insurance
Potential borrowers are interested in the issue of protecting life and health when applying for a home loan with state support. Such programs operate at a reduced interest rate of 12%. If the client refused to take out life insurance, the bank's income increases by 1%. Of course, you can return the money for the imposed service during the program, but even in this case, the rate will increase to 13%. The same applies to termination or non-renewal of insurance for next year. All these conditions are spelled out in the loan agreement.
However, personal insurance is no longer perceived as an additional way to deflate money from a client. Moreover, if you have an agreement on the protection of property interests, you can get a mortgage at 11.4%. But there are many questions regarding the terms of the transaction. The fact is that you can only make a service at Sberbank Life Insurance LLC at a fairly high rate of 1% of the loan amount. That is, if a client buys an apartment for 3.5 million rubles, making a down payment of 1.5 million rubles, then he borrows 2 million rubles. The insurance premium in the first year of the contract is 20 thousand rubles.
But how really?
In fact, it is easier to insure life in any company accredited by the bank. At the local level, managers prefer to keep silent about this for various reasons: from incompetence to the material interest of employees. You can find out what other companies the financial institution collaborates with at. site. Life insurance for a mortgage in Sberbank can be issued at 16 companies: VSK, Absolute Insurance, VTB Insurance, SOGAZ, Zetta, RESO, Ingosstrakh, Rosgosstrakh, NASKO, “Renaissance”, “PARI”, SF “Adonis”, “Sterkh”, “Spasskie Vorota”, “RegionGarant”, JO “Surgutneftegas”. Rates may vary up or down. If Sberbank employees refuse to accept such a policy, ask them for a written refusal.
The attractiveness of investment insurance
The investment investment program from Sberbank Life Insurance Company offers services for the simultaneous protection of investments with their investment in various assets in the Russian and world markets. Bank deposit brings a stable, but low income. Mutual Funds offer more interesting income-generating opportunities, but with greater risk, and their guidelines have shifted towards more experienced investors. Therefore, the attractiveness of the investment program from IC Sberbank Life Insurance is growing. Customer reviews confirm this.
Conditions
IC Sberbank Life Insurance has an investment product in its lineup . When paying a fee, part of the funds is directed to classical instruments (bank deposits, government bonds), and the remainder is invested in the asset selected by the client. But under this program, the risk of non-receipt of income lies with the customer. Conservative tools are additional protection from Sberbank Life Insurance. The client will receive a refund, or rather the initial amount of the investment, even if the asset he has chosen completely depreciates.
The program is long-term. If desired, the client can terminate the contract. In this case, he will receive a redemption amount. In the market, ups and downs are constantly alternating. The chance to earn income is higher on average terms. Successful market conditions may change at any time. Two to three years after the start of investment, you can change the underlying asset without any deductions.
IC Sberbank Life Insurance does not position an investment product in its lineup as an alternative to a deposit. It is aimed at customers who already have a bank deposit covering quarterly income. Anything can happen in life. And getting out of a long-term investment due to a temporary loss of work and salary is illogical. But to keep the annual budget in the bank on deposit is also wrong. Such an investor may have an interest in generating additional income.
Just such people are focused on the investment program. The client can independently choose any asset in the Russian and world markets. Moreover, program participants have another important advantage - preferential taxation of income. Customers who have entered into a life insurance contract through Sberbank for a term of five years or more are entitled to a personal income tax deduction. The tax is charged only on the part exceeding the income at the refinancing rate.
International Health Insurance
Sberbank Life Insurance Company offers its customers a new product for protection against critical diseases with the possibility of undergoing treatment abroad. This will allow clients to take advantage of the experience of specialists from leading clinics in the world and cover the costs of providing medical care during the treatment of dangerous diseases, rehabilitation, preventive examinations, and receive an expert medical opinion. The main advantages of the service are a wide range of risks, countries in which you can undergo treatment, and a new service.
International medical insurance allows you to get help in situations where the standard VHI policy does not work: cancer treatment, surgery, rehabilitation after organ transplantation. The program provides for professional surveys abroad. The policy also covers the treatment of diseases that were discovered by the client before the conclusion of the contract (but not earlier than 2 years), as well as at the end of its validity. Additionally, the client can purchase other service packages abroad.
The international life insurance of the borrower (Sberbank) allows clients to undergo treatment in the leading clinics of the world:
- in Germany, Israel, Spain, Turkey, Russia - cancer treatment and surgery;
- transplantology in any country;
- in Israel, rehabilitation and palliative care.
The all-inclusive approach within the insurance program provides not only for receiving payments, but also a wide service for organizing the treatment process, the client’s trip, as well as his accompaniment abroad. High level service is provided around the clock. Firstly, before, during and after treatment, a consultation is provided by telephone hotline. Secondly, the cost of the program includes the cost of air travel for the client and his accompanying people to the clinic abroad. In moments of serious illness, psychological help is important.
The program is valid for 5 years. The conditions stipulate the possibility of annual renewal of the contract. The annual limit of the insurance amount per person is $ 1 million with the possibility of a threefold increase. Due to the wide geographical coverage, the policy is issued only in US dollars. The maximum age of the client is 65 years. There are preferential programs for clients who draw up a contract for the whole family of 5 people.
Pokemon insurance - a new product on the market
Pokemon is a character from the new mobile game Pokemon Go. It was developed not only by gamers, but also by bankers. Rocketbank was one of the first to launch a Pokemon catcher insurance program. For the character “caught” at the bank’s branch, cardholders received 50 rubles per bonus account.
Sberbank has recently joined this venture. He opened a special site for players with addresses of 28 modules, attracting cartoon characters. The leadership of the financial institution expects that this will be able to attract enthusiastic gamers to the departments. If, during the capture of one of the Pokemon, the client is injured, then IC Sberbank Life Insurance LLC will pay him insurance for a maximum amount of 50 thousand rubles. Application for participation in the program can be submitted directly from the site.
In order to further interest gamers, Sberbank is holding an action “Always in touch”. Cardholders can be connected to "Auto Payment" until August 18, to replenish the account at least once - and then, when catching a Pokemon, a credit institution will credit the player 500 "Thank you" bonuses. Additionally, the client will need to send a screenshot and a mobile phone number in the LAN to the Sberbank community on Facebook or VKontakte.
Tinkoff Bank proposed its terms of the promotion. Each customer who has issued a Tinkoff Google Play credit card , a credit institution will accrue 2000 bonuses. They can pay for any purchases in the online store, including the game Pokemon Go (1 point = 1 ruble). The game already provides gamers with a cash-back for all purchases on Google Play (10%), in restaurants (2%) and for all other purchases (1%).