Recently, so-called voluntary and obligatory life insurance for mortgage loans became very popular. Our lives are associated with many benefits of a different nature, but unfortunately we suffer many losses too.
The worst is to lose people, get sick, get natural disasters: earthquakes, fires, floods, hailstorms, hurricane winds, victims of accidents with vehicles, we are out of work, and others.
There is such an activity in which companies raise funds from individuals and legal entities, and in the event of some of these risks occurring within the agreed term, they provide agreed coverage by paying cash compensation. Transferring the risk of possible losses, obtaining funds in certain cases is insurance.
It has a price – the amount we have paid to secure a certain protection in case of adverse events. The main types of insurances: personal, property, voluntary, mandatory, etc., their negotiation, the rules for signing and granting are clearly defined in our financial practice.
An important and comprehensive document in this area is the Insurance Code. One of the most important insurances is Life – it is concluded against events related to the lives, health and bodily integrity of our people.
Life Insurance protects us from the unforeseen, it enables us to take care of ourselves, of our closest ones. Its mechanism of action is the following – we advance a certain amount against the risk of an adverse event, if it happens, the insurer pays a certain amount to us or our relatives. We know that mortgage loans are related to a serious, long term and the allocation of a larger amount of money.
Life Insurance is an additional collateral to the bank when granting a mortgage loan , it provides protection against the death or permanent incapacity of the borrower. If we have a mortgage loan (such as a house purchase credit ) and an adverse event occurs with us, the insurer pays a certain amount to the bank – the remainder on the outstanding principal.
This of course depends on the clauses of the insurance contract, the amount of the insured amount and the insurance company itself. Life Insurance is mandatory when signing mortgage loans. When we take out mortgage loans and take out life insurance, we must pay particular attention to: what is its coverage (what risks), how long are we protected, what are the conditions under which the insurance comes into effect and what is its price j /.
It is clear that the insurance is in favor of the bank, it should be specified that it is paid only for the remainder of the outstanding principal of the loan, not the original amount. We need to read the insurance contract carefully and be fully informed before we sign. We will introduce you to some parameters of life insurance for mortgage loans.
- Life insurance under mortgage loans, which covers the risks associated with the borrower of a mortgage loan for individuals.
- Subject of insurance: physical persons over 18 years of age.
- Insurance coverage: Events fatal due to accident or illness, disability over 75% due to accident or illness and temporary disability due to them.
- Insurance amount: equal to the remainder of the loan principal, respectively the monthly contribution under the credit agreement.
- Duration of the insurance: equal to the term of the loan.
- Payment of the insurance premium – monthly installments, collected automatically by the client.
- Form of Life Insurance – Quietness with FIHealth: Provides financial stability to us and our loved ones in case of unpleasant and unexpected events in our lives.
- It covers our obligation to the bank in case of loss of life due to an accident or illness or to a permanent loss of employability of over 70% as a result of them.
- Credit claims are covered by the Insurer, they will not be transferred to the heirs in case of adverse events.
- Facilitated contract and claim procedure.
- Term – one year with the possibility of automatic renewal until the expiry of the credit agreement.
- Amount of the insurance premium: it is annual and is paid by the insured person. It is determined by the amount of credit determined at the beginning of each insurance year. No reported diseases – under standard conditions. The annual insurance premium may be increased to clients of the bank with reported diseases and individual conditions.
- Quick procedure for looking at the insurance claim for life insurance under mortgage loans, after contacting a bank inspector.