Credit insurance at Sberbank: conditions, procedure and terms of registration

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Today, many people take loans and become borrowers. They want to choose the most reliable and largest bank in the country. Along with the service, employees are required to purchase credit insurance at Sberbank.

Customer rights

Some borrowers do not understand and are not interested in the essence of the service itself and agree to everything. Is credit insurance mandatory at Sberbank? Not all loans must be accompanied by compulsory insurance. Typically, employees claim that if they refuse insurance, the bank will not approve a loan for them. Also, the employee may not warn about the existence of insurance. He provides documents for 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 an agreement to insure a loan at Sberbank.

Before signing all documents, the borrower must know that the refusal to purchase the product is not a reason for refusing to issue a loan. If the client nevertheless signed a loan insurance agreement with Sberbank, then he canfurther terminate it by writing a statement. You just need to be careful when filling out an 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 he will not return the money for paying for the 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 has established the obligation of each borrower to insure the property purchased on credit. This insurance is beneficial to both parties. Since in the event of an insured event (for example, a fire), the bank will receive funds from insurance and cover its expenses. And the borrower does not have to pay further loan. But employees also offer voluntary loan insurance at Sberbank, motivating people that interest rates will decrease upon purchase, and the likelihood of agreeing to issue 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 the overpayment in this case will be colossal.

Before you choose insurance, you must read all the conditions. To do this, you need to ask various questions to the employee. You can also ask for the terms of contracts.

Types of mortgage insurance

There are several types of mortgage insurance in Sberbank. But only one of them is required.

• Real estate. This insurance is mandatory. No bank will give a loan without real estate insurance. When obtaining a loan from Sberbank and need to insure property, you can use the services of insurance companies. But before you buy insurance, you need to ask the employee for a list of allowed companies. Sometimes Sberbank independently insures its customers. Also, before buying an insurance contract, you need to find out about all possible risks and exclusions. Usually the main risks are the complete or partial destruction of property as a result of natural disasters, fires, explosions. In this case, the bank becomes the beneficiary. Usually the validity of the insurance policy is one year. The premium is paid in one lump sum, there is no installment plan. The insured 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 smaller. The cost of insurance in 2018 is calculated at rates of 0.25%. In order to carry out a preliminary calculation, you can use the calculator on the official website of the bank.
• Life insurance on a mortgage loan 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 may be usefuland for the client himself, since a mortgage loan is a long-term contract. And during its action a lot can happen. If the borrower dies or is unable to pay for he alth reasons, then such insurance will help pay off the debt and it will not go to the next of kin. But taking out insurance for the entire duration of the mortgage is a huge overpayment, so it’s better to look for a policy with the lowest rate or refuse. If this insurance is refused, 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 from what will she be insured? The terms of the agreement will describe situations in which a person will receive a payment and be able to close the loan. These risks may be unlikely. And if a misfortune happens to a person, then it may not always fall under 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 for the loss of rights to the acquired housing. Typically, this type of insurance is purchased for apartments in the secondary market. It is necessary if new homeowners suddenly appear or any errors are found out 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 2,500,000 rubles, then each year the client will need to pay approximately 12,500 rubles. Thisinsurance can be the most beneficial for the client, since the debt will be paid by the insurance company in the future.
• Complex type of insurance. Most customers like this type of insurance, as there is an opportunity to get protection for the greatest number of risks, while paying less. When applying for insurance at Sberbank, the rate will be 1% of the loan amount. Also, the likelihood of mortgage approval will increase.

Changing the terms of a loan without voluntary insurances

If the client is informed that the insurances are voluntary, then the bank employees will not be able to force them to buy. But the bank may not approve the loan. Moreover, 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 conditions and require a large amount for the down payment on the mortgage. With such actions, the bank will try to protect itself from possible expenses.

Cancellation of insurance

Since only property is subject to compulsory insurance, many clients will want to refuse other types of contracts. If it was not possible to refuse additional insurance, then you can try to do this after purchase. To do this, you need to send a letter of request to the lender and partner-insurer (or go to the company's office and write an application there). If they refuse, then you can contactto court.

Before deciding to terminate the contract, you must carefully study the insurance contract. Often companies draw up contracts in such a way that it is impossible to terminate them in the future or without a refund of the money paid. Sometimes the contract specifies the conditions under which you can terminate the agreement and receive funds. For example, a contract can be terminated within five days of signing it.

Refund for insurance

When insuring a loan at Sberbank, how to return the money? The legislation of the Russian Federation states that the borrower has the right to return the funds if there are no violations in payment. Moreover, a refund can be made if the contract did not contain conditions on this matter.

The refund amount will depend on how long the contract was valid. For example, if there are eleven full months left before the end of the contract, then the borrower will receive the full amount. If less than six months remain until 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 money.

Pros and cons of mortgage insurance

Mortgage insurance has both positives and negatives. The advantage of insurance is protection against insured events. If at the time of the contract an event occurred that fell under the risk of the contract, the insured will be able to receive funds and repay part of the debt on the loan. For example, during disability, this service will be a salvation fromdebt.

The negative side of the contract is the cost of the policy. It often exceeds the higher rate. An accident may also occur with a borrower who is not insured. 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 from the fact that employees do not show a list of risks. Thus, policyholders remain in the dark.

Consumer credit insurance at Sberbank

Insurance of loan agreements is carried out on a voluntary basis. There are a number of risks under which Sberbank can insure its clients:

• Disability of the first group.
• Temporary disability (the reason for this disability is important).
• Accidents resulting in death.
• Departure.

Insurance when obtaining a loan from Sberbank has become commonplace. But customer contracts may differ. It should be noted that each contract has its own set of risks. For example, temporary disability as a result of an accident. If a person becomes disabled due to illness, then there will be no payment.

There are certain conditions for credit insurance at Sberbank. Persons who have suffered serious illnesses are not accepted for insurance. The age of the insured person is 18-65 years old.

Cost of insurancewill be credited. You do not need to make an additional payment, but you also need to deposit funds monthly.

The period of validity of the insurance agreement is equal to the term of the loan. The terms of the contract come into force on the fifteenth day after the signing of the document. The tariff and premium will depend on the included risks. The more risks, the more expensive. Typically, the tariff rate varies from 0.24 to 1.7% per month.

Pros of insurance

The benefit of insurance to the bank is clear. An expensive service is the arrival of additional funds to 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 purchase of an insurance policy becomes the most profitable.

Pros and cons of insurance

Contracts have their pros and cons. Before you agree to purchase a policy, you need to analyze them.

Positives:

• the policyholder, together with the policy, acquires protection in case of unforeseen situations;
• the bank will provide preferential lending terms and may lower the interest rate;
• policy applies throughout the country;
• in case of disability, the insurance company can make monthly payments instead of the borrower;
• some insuranceoffer online doctor consultations.

Negatives:

• 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 imposed on insurance, which significantly increases premiums).
• Insurance cannot cover everything, there are several risks against which the policyholder will be insured (not always his accident will become a risk under the contract).
• If the borrower decides to repay the debt ahead of schedule, then a refund for insurance is not always possible. Most likely, there will be a loss of funds.

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 an insurance contract cannot be the same for all insurers, as well as the terms of the agreement. After reading all the conditions, you can choose the most advantageous contract for yourself.