Where and how to insure a mortgage for Sberbank in 2021?

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A mortgage involves the transfer of residential premises as collateral to a financial institution until full payment of the loan. The company wants to be sure of the safety of the living space. The borrower is required to insure the property for the entire period of closing the mortgage loan obligations. This will increase the financial burden on the citizen. The cost of insurance may vary depending on the company you choose. By carefully analyzing the market, a citizen will be able to find an organization in which mortgage insurance will cost much less.

Types of mortgage lending

There are a large number of mortgage programs in the Russian Federation:

Attention! If you have any questions, you can chat for free with a lawyer at the bottom of the screen or call Moscow; Saint Petersburg; Free call for all of Russia.

• for new or secondary housing;
• with or without government support;
• for rooms, house, townhouse or apartment;
• for finished property or self-construction.

Cooperation with a financial organization is carried out in compliance with the provisions of Federal Law No. 102 of July 16, 1998 “On Mortgage”. Article 31 of the above-mentioned legal act states that insurance of collateral is carried out in accordance with the terms of the contract. This means that the lender has the right to oblige the client to purchase a policy by specifying the appropriate provision in the agreement. Today there are several types of mortgage insurance:

1. Insurance of collateral property. Property is protected from exposure to natural disasters, illegal actions of third parties, fires, and explosions. If one of the above risks occurs, the insurance company is obliged to compensate the cost of eliminating the damage or reimburse the entire price of the property. The beneficiary is the creditor. This means that it is he who will receive the funds, and not the person who bought the apartment on credit.
2. Mortgage life insurance. The policy includes the risk of death, disability, and temporary loss of ability to work. In the first two cases, the company will have to repay the borrower's debts. In the latter situation, payment is provided only for the period of temporary disability.
3. Title Insurance. A type of offer is used if the property is purchased on the secondary market. The borrower is protected from loss of title. Payment is provided if the purchase of real estate is declared illegal.
4. Liability Insurance. Protection against non-repayment of a mortgage loan is provided. However, you should not expect that the insurer will fully repay the mortgage for the borrower. Initially, the financial institution will take the mortgaged apartment and sell it; if the proceeds are not enough to pay off the obligations to the bank, the insurer will provide the rest.
5. Job loss insurance. The company will take responsibility for repaying the loan if the borrower is laid off. Voluntary dismissal is not included in the list of risks.

Attention
Please note that a financial institution has the right to oblige you to purchase only insurance against property loss. All other policies are purchased voluntarily on favorable terms for the borrower.

However, the bank reserves the right to decide whether to provide a loan to the borrower or not. Typically, failure to provide life and limb protection, fire and flood coverage will be grounds for application rejection.

Mortgage insurance for Sberbank in 2021: where is it cheaper and where to go?

With a mortgage, there are 3 types of insurance: purchased housing, life and health, title. In this article, we will look at what insurance is required for a Sberbank mortgage and where it is cheaper to get it, what will happen if you refuse life and health insurance. We will also tell you about the conditions of 9 insurance companies accredited by Sberbank.

What insurance is required for a mortgage with Sberbank?

It is impossible to obtain a mortgage without insurance from Sberbank. And these are not just internal requirements of the bank, this is stated in Article 31 of the Law “On Mortgage”. If the client flatly refuses to insure the property, he will be denied a loan to purchase a home.

As mentioned earlier, there are 3 types of insurance when taking out a mortgage. Sberbank will not require registration of all three. Only insurance of the purchased property is required. The collateral must be insured in favor of the bank against the risk of loss, destruction or damage. Such a policy is issued exclusively at the expense of the client’s personal funds.

Life insurance is not necessary to get a mortgage. However, in case of refusal, Sberbank will increase the mortgage interest rate by at least 1 percent. In this case, the borrower will lose more on this interest than he will spend on life and health insurance.

Factors that influence the cost of a life insurance policy

One of the most important issues that concern borrowers when considering life insurance is the size of the annual premium. The cost of the policy will vary for each potential client. Tariffs are influenced by several factors. Let's look at them in order.

Factor 1. Age and gender

Everything is simple here: the younger the client, the theoretically, he has fewer health problems and threats to life. Accordingly, the insurance company takes less risk, which leads to a reduction in the premium amount. Therefore, it is more profitable to take out a mortgage at a young age.

Statistics in our country show that on average women live 5-7 years longer than men. Therefore, insurance companies set lower rates for them.

Factor 2. Health status

When calculating the amount of the contribution, the medical history of the future client’s family is taken into account. The presence of diseases such as hypertension, oncology and diabetes will certainly lead to an increase in insurance rates. Hereditary and genetic problems will also increase your premium.

Factor 3. Excess weight

This factor can significantly increase the tariff even for young people, because this is a significant risk to their health. Excess weight means that a person is potentially susceptible to developing critically serious diseases.

Insurance companies will definitely calculate your BMI (body mass index) and if it turns out to be higher than the norm, the amount of the annual premium will increase. Weight loss = reduced tariff.

Factor 4. Profession

Insurers increase the annual premium when they learn that a client's work poses a risk to life. In this case, the ideal candidate for life insurance is an office worker whose activities do not pose any risk to life and health.

Factor 5. Lifestyle

Insurance companies will definitely pay attention to the lifestyle of a potential borrower. Thus, smokers will pay more than those who do not smoke.

There is no point in deceiving in this matter. The client will fill out a special medical declaration, which will indicate the number of cigarettes smoked per day. Entering knowingly false information may lead to refusal of payment in the event of an insured event. The same applies to alcohol.

Even the borrower’s passion for extreme sports is a reason for the insurance company to raise the cost of the policy. Skydiving, bungee jumping and other potentially dangerous activities pose a serious risk to human life and health.

Factors that influence the home insurance rate

It is difficult to answer unequivocally how much it will cost to insure a specific property. The tariff size is influenced by several factors.

Factor 1. Type of housing

The cost will even be affected by whether the apartment is purchased for the client’s permanent residence or for other purposes. Insurance companies do not favor properties that are rented out. At the same time, it is believed that its owner is less interested in preserving the integrity of the apartment.

https://www.youtube.com/watch?v=8bzFe7L_hks

Also be prepared to pay more if you purchased a dacha that you plan to visit no more often than on weekends. This leads to an increase in the risk of intrusion and damage to housing, and therefore to an increase in the price of the tariff.

Factor 2. Year the house was built

Insurers love new homes. The older the property is, the more expensive it will be to pay the insurance premium. Many companies do not insure homes at all that are over 65 years old (built in 1955).

Factor 3. Material of walls and ceilings

It is logical to assume that the difference in the tariff for insuring an apartment in a panel house and a wooden house will differ significantly not in favor of the latter. This is because the tree is more at risk of damage. Therefore, it is cheaper to insure real estate made of concrete panels or bricks.

Factor 4. Presence of sources of open fire

If your home has open fireplaces, stoves, or other sources of open fire, insurance agents will raise the cost of your annual premium. Stoves pose a direct risk of fire. And fire is one of the most common insurance events.

There are several factors that will reduce the cost of the annual fee. The presence of an alarm system, protection from fires and floods, etc. This indicates that property owners are willing to spend money on ensuring its safety. The risk of an insured event is reduced, and therefore the amount of premiums is reduced.

How to insure a mortgage for Sberbank cheaper - 4 tips

The following tips will help you get a policy at the best price:

1. Do not take out insurance from Sberbank. The credit manager will impose insurance from Sberbank. Moreover, these impositions can be quite aggressive. No matter what bank employees say, you should not agree to their conditions, because the rates here are significantly higher than in other insurance companies. Many people put themselves at a serious disadvantage when they are afraid to argue with the loan officer or are simply not aware of their rights. Don't be afraid to refuse Sberbank. Contact other accredited companies, compare their offers and choose the one that will be most beneficial for you personally.
2. Make the woman the main borrower. As we have already found out above, tariffs for women are lower than for men. Experts note that sometimes there is a difference of 2 times.
3. Find out about discounts for regular customers. Remember, maybe you have CASCO or OSAGO? Can an existing apartment be insured? If you contact a company that has one of the listed policies, you can ask about a discount for a regular customer. Many serious companies do their best to accommodate their regular customers.
4. Find out about promotions. When renewing the policy, the client has every right to change the insurance company. Many of them are ready to offer discounts of 10-15% simply for the fact that you switch to them. Moreover, the previous insurance company, having learned that you are about to cease being its client, may offer a special discount.

Nuances of property insurance for Sberbank

A standard property insurance policy only covers structural elements (walls, doors, windows and utilities). If desired, and for an additional fee, you can insure other elements: finishing, repairs, interior parts, etc.

What risks will be insured?

The property will be insured against:

1. Natural Disasters. For example, structures or trees falling on a house.
2. Fires and gas explosions.
3. Lightning strikes.
4. Illegal actions of other persons.
5. Boiler explosions.
6. Structural defects that were made during construction.

Approximate cost and terms

The insurance contract is valid for 1 year. The client is required to renew the policy annually until the mortgage is paid off.

All accredited companies have approximately the same cost of insurance for structural elements - 0.25% of the loan amount. Since the cost is calculated based on the balance, the amount of contributions will decrease each year.

Step-by-step scheme for obtaining a policy

Sberbank has its own subsidiary insurance company called Sberbank Insurance, where all policy registration can be done online.

To do this, you must follow the instructions:

1. Download and open the Sberbank Online application.
2. Go through authorization in the application (enter the code sent by the system via SMS).
3. Find it in the menu and click on the “Purchase” menu item.
4. Go to the “Mortgage Insurance” subsection and read the basic rules for obtaining an insurance policy.
5. Click “Go to calculation” and view the amount received.
6. Click on the “Buy a policy” button, after which you will be redirected to the payment page.
7. Choose a convenient payment option.
8. Receive the policy by email.

The procedure for obtaining insurance from other companies:

1. Provide the insurance company with a real estate appraisal report and name the mortgage amount.
2. Calculate the cost of insurance.
3. Make an insurance premium.
4. Get an insurance policy.
5. Provide information to Sberbank.

Documents that will be needed:

1. Copy and original of the borrower's passport.
2. Certificate or extract from the Unified State Register of Ownership of the purchased apartment.
3. Evaluation report.
4. A copy of the registration certificate for the property.
5. A completed form with the details of the borrower and the mortgage agreement.
6. Application on the form of the insurance company.

Nuances of life insurance for Sberbank

Life insurance is not mandatory. However, in its absence, Sberbank will raise the mortgage interest rate by 1%. Let's consider what cases will be insured, how much a life insurance policy costs and how to apply for it.

Step-by-step instructions for purchasing a policy

To purchase a life and health insurance policy, you must:

1. Choose the most suitable company and submit an application to it.
2. Collect and provide the required package of documents. Each insurance agent will request a different list.
3. Sign the contract and pay the insurance premium.
4. Take out a policy. This happens quite quickly. When contacting Sberbank Insurance, the policy will be issued on the day of the transaction.
5. Transfer the policy to Sberbank. Accredited companies themselves send insurance forms to Sberbank.

Online mortgage insurance calculator

An online calculator will help you calculate the approximate cost of insurance for Sberbank.

Enter your city, select “Sberbank of Russia” in the “Creditor” field, enter the remaining parameters and click on the “Calculate” button.

In the window that opens, the cost of insurance will be indicated, and if you want to apply for a policy online, click on the “Next” button and fill out the form. The policy will be sent by email after payment.

9 insurance companies accredited by Sberbank

There is no insurance company that would offer equally cheap rates to everyone without exception. Even if close friends tell you that a particular company issued a policy at a low cost, this does not mean that you will be offered the same conditions. Be aware of the factors that affect the rate.

If a client wants to find the best option for himself, he should contact all insurance companies accredited by Sberbank and ask them for calculations for his specific situation.

One of the important points that you should pay attention to when choosing an insurance company is its rating.

Let's look at 9 popular companies, their ratings, as well as the advantages and disadvantages of working with them.

Sberbank insurance

This is a subsidiary of Sberbank, which was created for the convenience of the bank's borrowers.

There is a special program for mortgagers, the rates of which depend on the age of the house and the presence of wooden elements in it.

This company is extremely unprofitable for those who want to purchase housing older than 1955 - the tariff will be expensive. According to the rating agency Expert RA, it has a rating of ruAAA (stable).

2. Ingosstrakh

The largest Russian insurance company, which has proven itself to be a reliable partner. Ingosstrakh is widely known and has a good reputation. It is in great demand among clients who have decided to take out a mortgage. "Expert RA" - ruAAA (stable).

• Reliability and solvency.
• Availability of branches even in small cities of Russia.
• Possibility to issue a policy online. However, when you check out offline, you can find even better deals.

Source: https://IpotekuNado.ru/strahovanie/ipoteki-dlya-sberbanka

Which mortgage insurance is best?

The average price of a comprehensive mortgage insurance package is 0.5-1% of the amount received. If you purchase protection against different risks separately, the cost will increase to 3%.

The leading position in the insurance services market is occupied by Rosgosstrakh. The organization concludes about 25% of mortgage insurance transactions. Among the company's partners are most large financial organizations in the Russian Federation. In second and third places are Sberbank Insurance and Ingosstrakh. However, the most advantageous offers are provided by companies that are not among the leaders. When choosing an organization where it is cheaper to insure a mortgage, you should pay attention to the following criteria:

1. Financial stability. It is necessary to take into account the authorized capital, assets, and insurance reserves. You can find out information from open sources.
2. Organization rating. You should consult lists compiled by independent resources. Additionally, it is worth taking into account consumer ratings left on various Internet resources.
3. Cost of the program. If an organization significantly reduces its mortgage insurance rates, it may indicate fraud or distress. Companies often run promotions to attract new customers. Therefore, it is worth carefully evaluating this parameter to understand what led to the setting of a low price for the service.

What risks are taken into account when drawing up a life and health insurance contract?

The main list of insured events can be divided into four categories:

• Death from disease.
• Death by accident.
• The occurrence of disability as a result of a disease.
• Disability as a result of an accident.

All these situations lead to the fact that the borrower is unable to pay under the mortgage agreement. Therefore, in such a situation, the insurance company takes on further payments.

It must be borne in mind that when an insured event occurs, the circumstances are carefully analyzed. If information is concealed or false data is provided, payment will be denied.

Cases where insurance does not pay include:

• Concealing information about the presence of diseases.
• Suicide or intentional harm to one's health.
• Death or disability while participating in extreme sports.
• Accidents resulting from drug or alcohol abuse.
• The accident occurred as a result of illegal actions.
• If the client’s death was caused by an occupational disease that was diagnosed before signing the contract.

Where is the cheapest life insurance for a mortgage?

Life and health insurance for a mortgage is optional, but banks encourage customers to take advantage of the offer. If the borrower refuses to purchase the policy, the risk of the application being rejected increases significantly. Additionally, the company will increase the interest rate by 1 – 4%. All tariffs that include a small overpayment imply protection against all risks. There are many proposals to protect life and health. To save money and insure your mortgage cheaper, you can take advantage of offers from the following organizations:

1. VTB insurance. The service is available to residents of all regions of the Russian Federation. The cost of the service is 0.25% of the cost of the premises.
2. Reso-guarantee. The overpayment is 0.182% of the loan amount.
3. SOGAZ. The cost of insurance is 0.21-0.23% of the loan cost, depending on the bank chosen.
4. Liberty. The company offers to use the service, the cost of which is 0.18-0.24% of the loan price.
5. Ingosstrakh. Insurance is 0.185-0.25% of the loan amount.

The conditions are valid at the time of writing; for more information, please contact a specialist.

What type of insurance is required when applying for a mortgage at Sberbank

It is impossible to obtain a mortgage loan without insurance from Sberbank. Some borrowers mistakenly believe that this rule is a bank requirement. However, a similar provision is also spelled out at the legislative level, namely in Article 31 of the Law “On Mortgage”. Refusal of insurance will be a reason for rejection of the loan application.

There are three types of insurance when concluding a mortgage agreement. The financial institution will not oblige the borrower to obtain all types of insurance at once. It is only mandatory to purchase insurance for the purchased property. Such a requirement allows the bank to reduce its risks in case of damage or loss of property. Purchasing this insurance policy is the responsibility of the borrower.

Life insurance when applying for a mortgage with Sberbank is not considered a prerequisite. However, if the potential borrower refuses to comply with this condition, then the interest rate will increase. The indicator will be increased by 1%. It can be concluded that paying such an interest rate will cost more money than with life insurance.

Where is the cheapest property insurance for a mortgage?

Real estate insurance with a mortgage is mandatory. If you check the market, you can find relatively inexpensive plans. To save money and insure your mortgage cheaper, you can start working with:

1. AlfaInsurance. The cost of the service will be 0.14% of the loan amount.
2. VSK. To take advantage of the offers, you must pay 0.15%.
3. Ingosstrakh. The company's mortgage insurance cost is 0.18%.
4. SOGAZ. The organization offers to insure property at a price of 0.17% of the loan value.
5. Reso-guarantee. The company has tariffs that allow you to protect property for 0.16% of the loan cost.

The conditions are valid at the time of writing; for more information, please contact a specialist.

What will lead to higher prices for life insurance?

There is a whole list of situations when the policy is more expensive. However, they do not allow you to know the exact price. Use the mortgage insurance calculator on the website of the selected company to find out where the mortgage insurance is cheaper. The following are the points due to which insurers increase their coefficients:

• gender – men will have to pay more money for the policy;
• age – the older the applicant, the higher the cost;
• health – chronic diseases contribute to higher tariffs;
• presence of bad habits - for smokers and alcohol drinkers the fee will be higher;
• weight – clients with extra pounds are insured at higher rates;
• profession - there is a high risk of injury, which means that the tariff will also be increased.

The size of the loan will also increase the cost, since the borrower pays a percentage of the loan. By identifying where the cheapest mortgage insurance is, you can lower rates further by eliminating factors that increase your rate. Of course, you will only be able to get rid of some items on the list (excess weight, bad habits, poor health), but this will also help reduce the total amount. There are other ways to reduce the cost of your policy.

Recommended article: How to get a tax deduction for an apartment for a pensioner

What is the cost of a mortgage insurance policy?

Despite the fact that only real estate insurance is mandatory, the financial institution asks clients to purchase a policy that includes protection for life and health. The final price is influenced by a large number of factors, the list of which includes:

• the size of the loan provided;
• housing costs;
• location of the property;
• a list of risks included in the insurance contract;
• condition of the premises;
• loan terms;
• the amount of the down payment.

Attention:
Early repayment of the mortgage reduces the amount of insurance. A citizen is required to have a valid policy during the entire debt repayment period. If the debt is paid off, the need for insurance disappears. If a person purchased a policy for the entire loan period, part of the amount can be returned.

Mortgage insurance where it is cheaper: conditions of insurance companies 2021

Welcome! Mortgage insurance - where is it cheaper and more profitable to get it? An interesting question that must be dealt with if you decide to take out a mortgage. Later in the post we will look at mortgage insurance where it is cheaper. Which insurance is worth taking and which is not, as well as the main conditions of insurance companies.

Mortgage insurance

In the last post, we figured out that there are three main types of mortgage insurance:

1. Constructive
2. Life and health
3. Title

Only the first type is mandatory. The rest are optional, but this will entail certain sanctions, including denial of a mortgage. Read our post “Mortgage Insurance” to learn more about all the nuances.

Before you go looking for the most favorable insurance rate, you need to contact the bank and get a list of accredited insurance companies from a specialist or on the bank’s website. You can only insure your mortgage with these insurance companies that have been pre-approved for working with the bank.

As a rule, banks issue so-called comprehensive insurance. This is an insurance policy for all three types of the above insurance at once. Typically its cost does not exceed 1% of the loan amount, but in most cases it is even less - from 0.2% to 0.5%.

The final tariff depends on many factors:

1. Lender bank - the lowest rates can be found in Otkritie Bank and Rosselkhozbank from 0.2%. This becomes possible through special agreements between the insurance company and the bank.
2. Gender of the borrower – the rate is lower for women.
3. Client Weight – Overweight borrowers may be denied mortgage life insurance or receive a higher rate.
4. Age of the borrower – the older the age, the higher the rate.
5. Areas of activity - risky professions receive an additional increasing coefficient when calculating.
6. Stories of the relationship between the borrower and the insurance company - personal discounts for cooperation, bonus for switching from another insurance company, etc.

Advice! If you want to save on an insurance policy, then make your spouse the main borrower, and let your husband be the co-borrower on the mortgage. This will allow you to get the minimum rate.

From all of the above, it follows that the insurance tariff is a rather individual thing, so there is no need to talk about exact figures, but you can reliably determine at least their approximate order. Let's take a look at the terms and conditions of the main insurance companies for mortgage lending.

Sberbank insurance

Sberbank, for example, requires mandatory insurance of collateral property, and the property value limit is no more than 15 million rubles; you will be charged 0.25% of the loan amount, and every year this percentage will be accrued on the balance of the total debt.

Life and health insurance will cost you 1%, but it is at your request, however, if you refuse, this percentage is added to the interest rate on the mortgage, or rather, if you agree, it will be subtracted.

In practice, it looks like if the amount is approved at 14.9% per annum, then for life and health insurance, the rate will drop to 13.9%. Well, the wide range of insurance cases that are insured has not been canceled here either.

Also, if you take out a mortgage from Sberbank, then this is the only bank that does not require comprehensive insurance, i.e. title is an optional condition.

If you want to change insurance, there is a 40% discount for the first year for mortgages and for those who decide to change companies.

Alliance (Rosno)

In Alliance, life and health insurance will be 0.87% of the insured amount; property insurance – 0.16% and title insurance – from 0.18%. The company is currently running a mortgage insurance promotion, which means that when you sign up for a mortgage insurance policy, you can insure additional risks at discounted prices:

• interior decoration of the property (finishing walls, floors, ceilings);
• insurance of civil liability to third parties during the operation of residential premises;
• increase in the sum insured for life and health;
• increasing the insured amount for property to the market value of the property.

It should be noted that due to the closure of offices in the regions, services are provided by the Central Moscow office.

Rosgosstrakh

Life and health insurance for Sberbank – 0.6% (men), and 0.3% (women); property – from 0.2%.

For VTB and other banks - life - 0.56 (man), 0.28% (woman), this is respectively; constructive – 0.17%; Well, and title insurance – 0.15%. By agreement with the Central Office, discounts are possible, but the amount is determined individually in each case.

The insured amount decreases in proportion to the decrease in the loan amount.

Early termination of the insurance contract on your initiative is also provided here only with full early repayment of the loan, in which case you are paid part of the premium paid for the remaining term minus 65% of the paid insurance premium. For other reasons, early termination on your initiative is possible, provided that the insurance premium is non-refundable.

Ingosstrakh

Here, you can choose to insure everything individually, or choose comprehensive mortgage insurance, which you already know includes property, life and title insurance. They do not provide approximate rates; you can only calculate the cost of insurance on your own terms.

Let's look at the example of a 38-year-old man, without bad habits, healthy, working in the prosecutor's office and a woman of the same age, but an estimator, the amount of their mortgage is 8,000,000 rubles, secondary housing on the 5th floor, they have owned it for more than 3 years . Insurance programs for Sberbank and other banks also differ here, so let’s move on to the numbers:

For Sberbank:

life insurance – 35,518 rubles (man) and 25,248 (woman);

Collateral property – 11,200 rubles (for each),

In total, we see that for a man – 46,718, and for a woman – 36,448. Contracts are issued for 1 year.

For VTB and other banks:

life insurance – 44,418 (for men) and 18,176 (for women);

Construct – 12,000 rubles (for both one and the other);

Title – 16,000 rubles (for each).

As a result, you see that for a man in this case comprehensive insurance will cost 72,418 rubles, and for a woman 46,176 rubles. For VTB, it is possible to conclude an agreement for the entire loan term with an annual extension.

You can terminate the contract early at your request on the same terms as most previous organizations; within 5 days after signing the contract, the insurance premium will be returned to you in full; beyond that, the premium will not be returned. Exceptions include, for example, the fact that you were not given a mortgage.

If you decide to change the insurance company to Ingosstrakh, then you will be provided with preferential conditions in the form of a discount from 5 to 15%, the exact amount of the discount is decided by the management: up to 3,000,000 rubles, the decision is made by the regional branch, above - by the central Moscow office.

The following promotion is currently in effect: if you have a mortgage insurance agreement concluded with this company, then there is a 20% discount on voluntary insurance (utility networks, finishing, property, etc.).

Alpha insurance

In Alfa Insurance, you can also choose comprehensive mortgage insurance, the term of which will be equal to the loan term and decrease every year as the debt is repaid.

The contract is terminated early, identical to the conditions of VSK Insurance House. When you change insurance company, here you get a simplified procedure for drawing up a contract and more favorable conditions.

The contract is concluded for 1 year.

As with all companies, there are different programs for Sberbank and other banks. But today the organization in question does not have accreditation for life and health insurance for Sberbank, so you can only insure property, it will cost 0.18% of the mortgage amount.

For VTB and other banks, you can insure for the entire term of the mortgage, to see the cost of insurance, we will again turn to our example (man and woman 38 years old and 8,000,000 rubles):

Life – 46,900 (man) and 30,452 rubles (woman);

Constructive – 9,200 rubles;

Title – 12,000 rubles.

Now you can see that the exact cost of mortgage insurance depends on many components, so all the amounts given as an example are approximate.

SOGAZ

Insurance in Sogaz is one of the most affordable:

1. Constructive - 0.1% if you additionally take out insurance for decoration, furniture, plumbing and civil liability for a minimum of 1,150 rubles.
2. Life and health – 0.17%
3. Title – 0.08%.
4. Loan non-repayment insurance - 1.17%

If the client cancels insurance early (early repayment of the mortgage), part of the fee for the unexpired policy period is returned, reduced by the share of the load in the tariff rate structure. There are no returns for other reasons.

comparison table

Analyzing the above, we can summarize everything in a comparative table for all the insurance companies we are considering, using the example of the same men and women with the initial data we took at the beginning of the post.

BankProperty (constructive)Life and healthTitle

Online calculator

To calculate mortgage insurance for all three main risks, you should fill out the data on the calculator. It will allow you to calculate the cost of the policy with the risks you need and apply for the policy online.

Bottom line

To find out where mortgage insurance is cheaper you need to take several steps:

1. Get a list of insurance companies from the bank or on our website.
2. Analyze the list to find insurance companies where you have preferences.
3. Analyze the list using our table.
4. Find several of the most profitable options.
5. Make the calculation using our online calculator.
6. Call your insurance company and find out the final rate for you.

Summing up our post, we see that insurance significantly reduces the interest rate on a mortgage, and refusal to insure the collateral may result in the bank refusing the mortgage, which means it is better to insure yourself.

And if you approach this issue with all responsibility, with the understanding that a mortgage is far from a short-term loan and anything can happen in our lives, you will, of course, eliminate possible risks that may affect your obligations in front of the Bank. Although, it’s up to you to decide and any decision you make will be right for you!

Source: https://ipotekaved.ru/strahovanie/ipotechnoe-strahovanie-gde-deshevle.html

What affects the cost of an insurance policy?

The following will lead to an increase in insurance rates:

1. Floor. Insurers sell policies to men at a higher cost than to women.
2. The presence of bad habits. If a person smokes or drinks alcohol, he may pay more.
3. Age. The cost of insurance increases in proportion to the number of years of the applicant.
4. Chosen profession. If there is a high risk of injury, rates will increase.
5. Health status. Diseases also negatively affect current tariffs.
6. Age of the house. The older the property, the more expensive the insurance.
7. Variety. The price of a policy for a house located in a city or in a village will differ significantly.
8. Presence of agreements with the insurer. If the bank cooperates with the company, customers may be offered preferential rates.
9. History of cooperation. If a citizen has previously interacted with an insurer, bonuses and discounts on mortgage insurance may be provided.

The exact cost will be known at the start of cooperation.

What determines the price of property insurance?

Many factors will affect the final tariff. You don’t need to take them into account yourself - the program will do it for you. But to understand where mortgage insurance is cheaper, take into account the following nuances.

1. The organization that issued the loan for the purchase of housing.
   Some banks have agreements with insurers, due to which the policy here is cheaper.
2. A variety of square meters.
   The cost of obtaining insurance in the city and the countryside will be different (an apartment will be cheaper).
3. Age of the house and condition of the property.
   It is determined through an assessment procedure. The older the property, the more expensive the policy is.
4. Age and field of activity of the client.
   An increased coefficient awaits representatives of risky professions, as well as older people.
5. History of cooperation between the borrower and a specific company.
   When working together for a long time, insurers offer bonuses and discounts.

Recommended article: How to pay for Sberbank mortgage insurance - online, in Domklik

When trying to figure out where mortgage insurance is cheaper, take all these factors into account. But do not forget that a specific tariff is a purely individual indicator. Therefore, you will be told the exact amount only after contacting the organization with a package of papers.

But what you can prepare for in advance is the rise in price of the policy. Knowing which indicators charge higher coefficients, you can eliminate them by achieving a lower price. Although some factors, such as gender or age, cannot be changed.

Ways to Save on Mortgage Insurance

The cost of mortgage insurance can be reduced if you carefully approach the purchase of the policy in advance. Experts recommend:

1. Apply for a mortgage for your wife. In this case, the husband must act as a co-borrower on the mortgage. This way you can count on a more favorable tariff.
2. It is worth paying attention to the promotional offer. To attract new customers, insurers periodically offer more loyal programs. Savings reach up to 25%.
3. It is necessary to purchase premises in a new house. It is better to take out a mortgage for an apartment in a new building. As a result, the borrower may not have to take out a title insurance policy. Additionally, the coefficient will be significantly lower.
4. It is better not to take out insurance directly from a financial institution. In this situation, purchasing a policy can cost 2 times more.
5. It is recommended to use only necessary insurance products. If the action does not entail an increase in the interest rate on the loan, it is better to purchase only a policy that protects property from damage and loss.
6. It is recommended to use seasonal discounts or promotional codes. Additional bonuses are provided during major holidays and mortgage insurance may be cheaper.
7. It is necessary to contact the company with which you previously collaborated. This will allow you to count on more favorable conditions.

How to buy mortgage insurance cheaper from Sberbank

Specialists and experienced borrowers provide the following recommendations for saving money when purchasing an insurance policy:

• You should not take out insurance from Sberbank itself. A bank employee will offer this type of service in an intrusive manner. Be prepared for the fact that such persuasion may be aggressive in nature. However, you should not accept the information voiced by the manager. Borrower indecisiveness can cost additional expenses. Say that you need time to think about what you have learned. You can contact other accredited companies that will provide insurance services at a more favorable rate.
• It is better to make a woman as the main borrower. Insurers can significantly reduce insurance rates for women. This is associated with a lower risk of injury.
• Don't hesitate to ask about discounts for regular customers. This applies to those citizens who apply for CASCO or MTPL from one insurer every year. It is possible that an additional discount will be offered for apartment insurance. Quite a lot of insurers immediately make concessions so as not to lose a regular client.
• Ask about promotions or special offers. You should not expect that the manager will literally immediately please the client with a big discount. The insurer’s task is to conclude a contract at the highest possible cost. However, with persistent mention of discounts, some are ready to reduce the cost of the insurance rate to 15%. The insurer is especially strongly influenced by the words that the lack of discounts will force you to turn to another company.

Where is the cheapest place to get mortgage insurance?

When choosing a suitable offer, it is better to analyze several companies at once. This will allow you to find the most favorable tariff. It is recommended to pay attention to proposals from the following organizations:

1. Sogaz. The cost of property protection is 0.1% of the loan amount, life and health protection – 0.17%, title insurance – 0.08%.
2. RESO. The organization regularly holds promotions with discounts. If you periodically review the company’s offers, you can find tariffs whose prices will be 40% lower. The standard cost of the policy will be: property protection from loss or damage - 0.1%, life and health insurance - 0.26%, title insurance - 0.25%.
3. Ingosstrakh. The company also often provides discounts to customers. The borrower can purchase a comprehensive policy or use each service package separately. The offer price starts from 0.14%.
4. AlfaInsurance. The company has a whole list of different programs. The company deals only with real estate insurance. The cost of the policy is 0.15%.
5. Rosgosstrakh. If you purchase protection against loss or damage to property, the price will be 0.17%. For life and health insurance you will have to pay 0.28%.

The conditions are valid at the time of writing; for more information, please contact a specialist.

Rating of companies by prices

The order of the list is from more favorable tariffs to less affordable ones. It was created on the basis of data provided by insurers.

1. The company has the best offer. If you are looking for the cheapest mortgage insurance, you need to contact this organization. Here, for a property policy they will take no more than 0.10% of the loan amount, for life and health they will ask for 0.17%, and the title type is available for 0.08% of the loan.
2. Next comes . Structural, health, and title can be insured for 0.10, 0.26, and 0.25% respectively. Also consider reviews where mortgage insurance is cheaper. They are mostly positive. Promotions are regularly held here with discounts of up to 40% when purchasing a policy.
3. Ingosstrakh get a comprehensive policy or your own document for each type. Tariffs start at 0.14% of the loan size.
4. Alfa Insurance offers different programs for different banks (). You can get a policy for real estate only for 0.15% of the total amount.
5. Where is it cheaper to get mortgage insurance if the main borrower is a woman? The best option is . To protect yourself from the consequences of illness or sudden death, the policy is issued for 0.28%, and for property - from 0.17%.
6. They offer registration for an amount starting from 0.25%. There is a limit on the cost of housing (15,000,000 rubles). Health insurance will be more expensive – from 1%.
7. Next on the list is 0.33% across all types of policies. You will be entered into one comprehensive contract for a year.
8. The company offers the highest rates. The minimum you will have to pay is 0.43% for a home policy. Health is insured here for 0.55%.

Recommended article: How to get VTB mortgage insurance online

When determining where property insurance for a mortgage is cheaper, you should take into account only this indicator (the percentage for the property policy). It was on this basis that the rating was compiled. If you require a comprehensive agreement, the positions on the list will change slightly.

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Author:

Mortgage specialist Maria Yurievna Sokhan

Publication dateOctober 25, 2019September 30, 2020

Where is it cheaper to get mortgage insurance if the mortgage is from Sberbank?

Sberbank is the flagship of the Russian mortgage lending market. The company has loyal tariffs - the average interest rate is 8.5% per annum. Additionally, the organization takes part in most government mortgage programs. However, it is necessary to take into account the profitability of the offer, taking into account the amount of money that will have to be spent on purchasing insurance. It is best to contact the following organizations:

1. Reso-guarantee. It has a stable rating and ranks fourth in terms of box office receipts. The company specializes in cooperation with individuals. This is the only organization that a borrower over 60 years of age can apply to. However, pricing is often unpredictable.
2. Sogaz. The company was originally created to insure Gazprom's risks. The organization is distinguished by high financial reliability and solvency. The company's branches are present in almost all regions of the Russian Federation. Organizational representatives may be difficult to contact.
3. VTB insurance. This is a subsidiary of VTB Bank. It is characterized by high financial reliability. Branches of the organization are present almost everywhere.
4. Sberbank insurance. A subsidiary of the bank of the same name, which was created for its borrowers. Tariffs depend on age and gender. Additionally, the cost of insurance is influenced by the year of construction and the presence of wooden elements in the structures. The policy can be issued online. In this case, you will be able to get a 10% discount. However, it should not be more than 15,000 rubles. You can obtain insurance directly during the loan issuance process. Often the company provides a free month of property insurance as a gift. However, credit managers act quite aggressively. When choosing Sberbank insurance, the client may be faced with the imposition of services.

Which company is cheaper to get an insurance policy for mortgage lending in Sberbank

It’s worth saying right away that there is no insurance company that could offer the most favorable conditions for absolutely every client. Reviews on websites or advice from friends may not bring the expected benefits. There is no guarantee that absolutely identical insurance conditions will be offered to two clients. Factors influencing the tariff play a key role here.

Important! To find profitable insurance policies, it is recommended to contact all accredited insurance companies of Sberbank. The request can be sent to several institutions at once.

Let's look at popular insurers and their conditions.

Sberbank Insurance

The organization acts as a subsidiary of the bank of the same name. This insurer offers a number of programs for mortgage borrowers. The cost of the policy will depend on the age of the client, as well as the quality of the building materials used to build the house.

The company has established itself as a reliable partner in the insurance market. It is possible to issue a policy online. This option for completing documentation can give the client an additional discount of up to 10%.

However, we should remember some shortcomings in the activities of this company:

• Aggressive solicitation of services.
• Quite high rates for purchasing a policy.
• May provide unverified information about other insurance companies. For example, that other companies will not pay insurance if an insured event occurs.

Ingosstrakh

This is one of the largest insurance companies in Russia. This organization has managed to gain a positive reputation among clients.

The advantages include:

• High level of reliability and solvency.
• Developed network of branches throughout Russia.
• An insurance policy can be issued directly on the company’s official website.

Disadvantages of the company:

• There are quite strict requirements for clients.
• A large number of risk exclusions.

SOGAZ

This company has a large-scale structure in the Russian Federation. The organization presents a large number of projects for individuals.

The advantages of its activities include:

• Solid reputation.
• High level of solvency.
• The company's branches are located in almost every city in Russia.
• Tariffs are distinguished by a reduced rate when compared with other offers on the insurance market.

Flaws:

• It is quite difficult to contact company employees regarding the calculation of preliminary costs.
• There is an active imposition of additional services.

Step-by-step instructions for obtaining cheap mortgage insurance

If a citizen wants to purchase mortgage insurance cheaper, he will need to do the following:

1. Select the organization with which cooperation will be carried out. It is necessary to take into account that the bank establishes a list of accredited organizations. You need to choose an insurer from this list. Otherwise, it will not be possible to continue cooperation. When studying insurers, it is necessary to take into account the period of presence on the market, current tariffs, company rating and special offers present.
2. Decide on the type of insurance. It is mandatory to purchase a policy to protect property from damage and loss. You can make choices regarding life and health. Therefore, it is worth considering the profitability of the offer. If 2 types of insurance are taken out at once under one contract, organizations often provide a discount. It is not necessary to purchase both policies from the same company. It is acceptable to contact different insurers. The main thing is that the companies are accredited. It is permissible to conclude a comprehensive mortgage insurance agreement. In this case, only one agreement is drawn up. In this case, the client receives protection from several risks at once. Most lenders in this case are ready to reduce the mortgage interest rate by 1 - 2%.
3. Prepare a package of documents. It is mandatory to provide an identification document, a real estate purchase and sale agreement, documents for the purchased apartment, and appraisal results. Then you need to fill out an application. If life and health insurance is carried out, medical documents are required to assess the condition of the borrower at the time of notification to the organization.
4. Contact the insurer and provide documents for verification. The company will make an appropriate decision. Additionally, the client will find out the exact cost of the policy.
5. Make a decision on the advisability of cooperation with the chosen company, conclude an agreement and pay for insurance. After this, the client will be provided with supporting documents.

Factors that influence the home insurance rate

It is difficult to answer unequivocally how much it will cost to insure a specific property. The tariff size is influenced by several factors.

Factor 1. Type of housing

The cost will even be affected by whether the apartment is purchased for the client’s permanent residence or for other purposes. Insurance companies do not favor properties that are rented out. At the same time, it is believed that its owner is less interested in preserving the integrity of the apartment.

Expert opinion

Alexander Nikolaevich Grigoriev

Mortgage expert with 10 years of experience. He is the head of the mortgage department in a large bank, with more than 500 successfully approved mortgage loans.

Also be prepared to pay more if you purchased a dacha that you plan to visit no more often than on weekends. This leads to an increase in the risk of intrusion and damage to housing, and therefore to an increase in the price of the tariff.

Factor 2. Year the house was built

Insurers love new homes. The older the property is, the more expensive it will be to pay the insurance premium. Many companies do not insure homes at all that are over 65 years old (built in 1955).

Factor 3. Material of walls and ceilings

It is logical to assume that the difference in the tariff for insuring an apartment in a panel house and a wooden house will differ significantly not in favor of the latter. This is because the tree is more at risk of damage. Therefore, it is cheaper to insure real estate made of concrete panels or bricks.

Factor 4. Presence of sources of open fire

If your home has open fireplaces, stoves, or other sources of open fire, insurance agents will raise the cost of your annual premium. Stoves pose a direct risk of fire. And fire is one of the most common insurance events.

There are several factors that will reduce the cost of the annual fee. The presence of an alarm system, protection from fires and floods, etc. This indicates that property owners are willing to spend money on ensuring its safety. The risk of an insured event is reduced, and therefore the amount of premiums is reduced.

Comparison table of mortgage insurance conditions

As mentioned earlier, the cost of insurance is determined individually. However, all companies have basic tariffs that affect the final cost. Indicators must be assessed in aggregate. This will help evaluate the profitability of the service.

Attention
The conditions are valid at the time of writing, please contact a specialist for more information.

How much does home insurance cost?

The insurance issued has a limited period of validity. As a rule, the period is 1 year. Therefore, the mortgage borrower will have to contact the insurance company annually until the debt is fully repaid.

When contacting any accredited company, you will be charged approximately the same cost for the insurance policy. This parameter is about 0.25% of the total transaction amount with the lender. It is worth considering that the cost will be announced based on the balance.

Important! The amount of insurance premiums will become lower every year due to the payment of mortgage debt.

The cheapest mortgage insurance in Sberbank: list of accredited insurance companies

Last year, a record number of Russians applied to banks for loans. A third of the loans were used to purchase apartments. Many transactions were accompanied by insurance to reduce the interest rate. Since this service is paid, applicants are looking for information on how to reduce costs when drawing up a contract.

Criteria affecting mortgage rates at Sberbank

The cost of insurance is not a fixed amount. She is changing. It all depends on the category of insured citizens:

• Gender;
• Age;
• Health conditions;
• Professional activity;
• Bad habits;
• Degree of obesity;
• Hobbies for extreme sports activities;
• Pregnancy.

Why do you need insurance?

The policy guarantees that if the borrower loses health or leaves this world, the insurance company will compensate the bank for the money. Since both the term and the amount of the mortgage are taken into account, the financial institution seeks to protect itself.

Insurance also prevents a situation where a borrower, after an unpleasant situation occurs, burdens his relatives and heirs with credit debt. In the event of illness, the insurer will pay premiums instead of the citizen until his ability to work is restored upon receipt of appropriate evidence from him.

Do I need to insure

The bank never imposes such a service; the borrower chooses it voluntarily. For financiers, this is the most important rule, since insurance becomes worthless if it is taken out involuntarily.

But getting a mortgage without insurance is prohibited by law. When there is a deposit, it is also impossible to do without presenting a certificate of insurance.

It is also impossible to extend the insurance of property provided as collateral.

What is the price

This year, Sberbank is issuing a mortgage if insurance has been purchased for housing. Citizens insure themselves because the financial institution is interested in this. All proposed basic loan rates are relevant only for life insurance of the borrower. When he does not want to spend money on it, it grows by 1%.

The price of insurance depends on the age of the borrower, his health and the loan amount. The contract with the insurance company guarantees that children and relatives will not have to worry about paying off the debt in the event of an insurance situation. They will be relieved of the burden of paying the balance of the mortgage.

If the loan does not have a policy

Let's consider what the mortgage structure consists of, what the financial institution adds to the debt to the cost of the apartment:

• Apartment price;
• Annual interest rate;
• Account maintenance;
• Insurance policy;
• Work of the appraiser;
• Voluntary insurance.

You can roughly calculate all these costs. If a citizen purchased a one-room apartment through a mortgage for 3,500,000 rubles at an interest rate of 9% and a loan term of 15 years, then his loan looks like this:

• Apartment price - 3500000;
• Estimate - 12000;
• The amount of interest is 1,763,000;
• Maintenance - 211000;
• Home insurance - 54860;
• Voluntary insurance - 109720.

The total loan from Sberbank without an insurance policy will amount to 5,650,580. The total overpayment is 2,150,580.

Calculation method

The insurance policy associated with the mortgage is issued by the insurance company for a year and then extended until the loan is closed. When there are three weeks left before the payment is completed, the bank sends the company information about the amount of the remaining debt. Based on this, the insurance company recalculates the contribution.

What criteria influence the amount of life insurance:

1. Age;
2. Profession;
3. Presence of chronic diseases.

The tariff increases annually for borrowers over 40 years of age. This is due to the increased risk of the possibility of an insurable situation. It is more difficult for this category of citizens to choose a cheap option for obtaining a policy. Borrowers who work in hazardous workplaces also pay more for life insurance.

Insurers accredited by Sberbank

According to the law, the borrower, when receiving a mortgage, is required to insure his own life. This is allowed to be done in any insurance company. Usually, when contacting, a Sberbank employee recommends signing up for the service with them.

If a citizen wants to use another insurance company, he is offered a list of 37 accredited companies cooperating with Sberbank. When applying to another structure, the risk of being denied a mortgage increases.

But employees of most insurance companies that do not have agreements with Sberbank will certainly assure that there are no problems when obtaining a loan.

They lure customers with cheaper policies.

Borrowers are always concerned about whether they are required to take out a policy with Sberbank. Credit experts have mixed opinions on this topic. If a citizen is afraid of being refused, he is recommended to insure himself in a banking structure, although by law he has the right to choose.

When the borrower does not want to enter into an agreement with the insurance company, the bank increases the mortgage rate by 1%. The state, regulating the processes of lending to citizens simultaneously with the insurance business, guarantees that the borrower always has the right to refuse insurance without material losses for himself.

Where is it cheaper?

When choosing an insurance company, you definitely need to compare all the current offers of these organizations. This is necessary because life insurance at Sberbank itself is quite expensive. Obtaining a policy is guaranteed to extend the term of the mortgage in unforeseen circumstances, without damaging your credit history due to late payments.

We are publishing an overview of the most popular insurance companies now, where borrowers are offered to take out a mortgage policy. Choose the appropriate option yourself:

Purchasing a cheap service does not guarantee your own safety. Be sure to carefully study the clauses of the contract before applying for a policy.

How to reduce the cost

The borrower has the right by law to choose his own insurance company. When, when lending, he decides to take out a policy, the bank is obliged to offer him various options, and the citizen himself will choose the most acceptable one.

You cannot take out insurance until the mortgage is approved by the bank. When an insurance company does not suit Sberbank, the borrower will simply lose his savings.

If a citizen concludes an insurance contract in advance with an insurance company that cooperates with a financial company, this step allows him to save money. Also, after this you can hope for a 1% discount on the mortgage.

If you do not renew such a policy annually, this discount will no longer apply.

Insurance nuances

The insurance company, when considering the borrower's application, often orders a medical examination. It includes the following activities:

1. Examination by a therapist;
2. ECG;
3. Blood test.

When the borrower's health wants to be better, insurance is denied or the cost of the policy is increased.

If payments are late, the insurance company has the right to refuse to repay the loan. Therefore, it is necessary to pay the mortgage and insurance strictly before the occurrence of an insured event, so as not to lose insurance payments, while at the same time adding penalties to yourself. The insurer also has the right to slightly delay payments in the event of an insurance situation if more time is needed to analyze the circumstances.

Existing risks

The contract for the purchase of the policy scrupulously describes all the conditions for ensuring payments. Their deadlines are also indicated. Although different companies slightly change the details of the agreement, the main criteria for insurance situations covered by the insurance company have been developed:

• Death due to an accident;
• Death due to illness;
• Loss of ability to work due to illness;
• Receiving disability due to an accident or illness.

The insurance company has the right to refuse to make payments when the following factors are discovered:

• The citizen concealed a serious illness;
• The accident occurred during military operations;
• An individual has suffered due to illegal activities;
• The borrower intentionally harmed his health;
• Alcohol or drug intoxication caused the accident;
• The injury occurred after extreme sports;
• The insurance situation was caused by a mental disorder.

Risks are described in more detail in the contract. Cheap policies have a smaller list of insurance situations, but when only payments in case of accidents are recorded there, and the person dies due to illness, debt compensation will be denied.

How is insurance useful?

Sometimes borrowers, wanting to save money, do not insure their lives. Then Sberbank will certainly increase the interest rate, which will make the total amount higher than with insurance. In addition to financial benefits, the policy also provides the following benefits:

1. If you lose your job, the insurance company will compensate for payments for all days of unemployment, relieving the borrower of fines;
2. After the death of the insured person, the insurance company will pay off all his debt to the bank, and the apartment will go to the heirs.

As the annual insurance premiums begin to gradually decrease, purchasing a policy is beneficial.

How to return insurance

It will take a week to terminate the contract. This situation occurs if the bank has not approved the mortgage. But if, after receiving it, the borrower returns the insurance, Sberbank recalculates the mortgage rate upward.

If the mortgage is paid in full within the terms specified in the agreement and there is no insurance situation during this period, the insurance company does not return the money.

Part of the funds will be returned if the debt is repaid ahead of schedule. Then you need to bring your passport and the signed contract along with a certificate of loan repayment to the insurance company.

It's easy to calculate the refund amount. To do this, you need to divide the deposited insurance amount by 365, and then multiply the result by the number of days remaining until the end of the period.

The money is transferred to the client’s account or given to him in his hands.

Reviews

Vasily, St. Petersburg, 36 years old: A year ago I took out a mortgage on a house for my parents. At the same time as the contract, I received an insurance policy. At first I doubted why it was needed, but bank employees strongly recommended that I apply for it. When I was injured at work, my incapacity for work prevented me from continuing to pay my debt. Only insurance payments completely solved the problem.

Veronica, Moscow, 24 years old: I took out a mortgage to buy an apartment. Along with the contract, Sberbank employees recommended concluding an insurance agreement. When the insurance expired after 2 years, the husband decided not to renew it.

The bank immediately demanded reimbursement of the debt after recalculation. We realized how important insurance is. We had to take out the policy again with large overpayments, after which we agreed to recalculate our debt.

Now we are regularly renewing our insurance, while simultaneously paying off the monthly debt.