In the article, we will consider what is a “Protected Borrower” from “Sberbank Insurance”.
Most citizens when choosing a mortgage loan choose the largest domestic bank. A financial institution by law requires that individuals insure the acquired property. At the same time, personal insurance (against illness, accidents and death) is made at the request of the client. Currently, there is a program from IC Sberbank - “Protected Borrower”, which provides citizens with a mortgage loan more favorable terms. Consider the specifics of its design and all the advantages.
Health and Life Insurance
Insurance services are provided within the scope of the Protected Borrower program from Sberbank Insurance. This company was formed relatively recently, based on the eponymous PAO. Now you can connect to the program both in the offices of the institution, and online.
The project provides for financial protection of client obligations to a credit institution in the event of disability or death of a person. When an insured event occurs, the insurance company will pay the bank in full the mortgage debt remaining during the insured event, and it will not be transferred to the relatives of the victim.
Payout amount
The amount of payment is determined by the size of the balance of the debt under a loan agreement. The cost of the policy is also calculated in accordance with this figure and is equal to 1% of the amount of insurance payment per year.
You can find out the conditions for the Protected Borrower program from Sberbank Insurance and determine the price of the service on the company’s website. Also, users can here extend the insurance, which was issued earlier for one year.
Program Terms
The “Protected Borrower” insurance policy is issued from Sberbank Insurance for one year. Its action begins immediately after registration.
Insurance coverage is provided in the following situations:
- first and second groups of disability;
- death of a client.
The cost of insurance is determined individually and depends on a number of factors: age, gender, amount of insurance protection. The latter is established on the basis of the amount of the amount to be repaid on the loan. The calculation is made on the company's website or in any department, which is very convenient.
The terms “Protected Borrower” from “Sberbank Insurance” are simple and understandable. First you need to determine the amount of debt. There are several ways to do this:
- at the bank branch;
- using the Sberbank Online service;
- to look into the payment schedule issued to the client when concluding a mortgage agreement;
- by calling the contact center.
If the amount of the debt on a mortgage loan is more than one and a half million, Sberbank insurance - “Protected borrower” must be drawn up at a branch of a financial organization. The insurance contract begins five days after ordering the service. The policy is issued in electronic form for a period of one year.
Customer requirements
One of the significant drawbacks of the program is the fact that not all citizens can afford the policy. There are certain requirements for those who want to receive a policy under the Protected Borrower program from IC Sberbank Insurance:
- client age: for women - 18–55 years old, for men - 60 years old;
- Citizens with a specific list of diseases are not subject to insurance.
All insured citizens are eligible to receive funds in the event of disability or death. Only a limited number of people can rely on compensation in the event of an accident. The beneficiary under the terms of the agreement is the client or his heir.
How to apply for a “Protected borrower” life insurance policy from Sberbank Insurance?
Policy registration
The policy can be issued in one of the ways:
- in the branch of Sberbank, located closest to the client (begins to operate in five days);
- in your personal account via Sberbank Online (functions in three days).
The latter method is well suited to those customers whose debt is not more than one and a half million rubles. Documents are sent to the citizen's email after payment. For a larger amount, you need to contact the consultants personally to reissue each year. The policy can be paid from the card directly on the official website. It is also possible to connect such a Sberbank service as “auto payment”, and the required amount will be automatically deducted from the account. Thanks to the Protected Borrower program, not only loan repayment is guaranteed, but also care is taken for relatives. More recently, such a service was introduced by Sberbank, and it has gained high popularity. Very convenient design and easy way to pay. Customers are offered a low percentage and good conditions. They do not need to spend their time on registration, payment and renewal of insurance - all operations are carried out using a computer and connecting to the World Wide Web.
"Auto payment" and registration online
You can issue and calculate the cost of the policy online. To do this, the client needs to take the following steps:
- visit the site of Sberbank on the page with the characteristics of the program “Protected borrower online”;
- follow the specified link to the portal of the insurance company;
- fill in the form and indicate in it all the information;
- after registration, a policy will be sent to the email address;
- insurance is paid by credit card.
A financial institution provides in your account such a convenient service as the "auto payment" service. Thanks to this option, you don’t have to worry about making contributions in a timely manner, since the required amount will be automatically debited from the client’s account in accordance with the specified parameters for his loan.
Limitations
Some citizens cannot order such a policy, it is not available to them. These include:
- incapacitated persons;
- citizens who are registered in a drug addiction dispensary;
- patients with hepatitis C, AIDS, cirrhosis, thermal kidney failure, tuberculosis, cancer;
- persons with serious mental disabilities;
- Citizens who have previously suffered a stroke or myocardial infarction.
In addition, the policy is not issued when the applicant was diagnosed with HIV, or he was forcibly sent to a medical or psychiatric examination. However, it is possible to apply for a loan-covered policy if the borrower dies from an accident.
What are the advantages of the Sberbank - Protected Borrower program for a mortgage?
Program Benefits
It should be noted that a personal program has a large number of advantages. First of all - registration at any convenient time on the official website of the organization. The policy does not need to be transferred, since the insurer does this himself, which significantly saves customers time.
Very favorable conditions for citizens, since the cost of insurance is always calculated individually, and therefore they will not have to overpay. By agreement, it is very profitable to pay a fee through an online service or with the installation of the "auto payment" service.
You should be aware of another feature.In case of refusal to renew the policy, the banking institution has the right to increase the rate by one percent, as indicated in the standard agreement on mortgage lending. Because of this, arrears and monthly payments will be increased.
Reviews on the “Protected Borrower” program from “Sberbank Insurance”
The “Protected Borrower” service is quite popular, and many customers use it, considering it a good guarantee of fulfilling loan obligations if an insured event occurs one day.
Often there is an opinion that “banks” impose “protection” or “insurance” under various pretexts, and it can be difficult to abandon it. Customers believe that with mortgage lending it is more appropriate than with a consumer loan. But it often turns out that in the absence of life insurance, the interest rate is much higher, and sometimes it’s more profitable to use the service than to refuse it.
Some clients, upon learning of a decrease in the “Protected Borrower” ratio, are trying to draw up a program in order to lower the loan rate. Sometimes it happens that the preliminary approval with the Sberbank insurance company was successful, a positive response was received to reduce the rate, and after the policy was issued, it had to take effect at a certain time. However, the rate has not changed, the validity period of the contract has passed, and it was not possible to return the funds for insurance. Such situations cause discontent among citizens.
Conclusion
Thus, the Protected Borrower program has recently appeared in our country. At first it was intended only for corporate clients, but later the list of persons to whom the program could be available expanded.
Mortgage refers to long-term loan programs. In addition to protecting their property, customers can protect themselves and their loved ones if they take out personal insurance. The main advantage of this solution is the guarantee of full repayment of the housing loan debt and the fulfillment of financial obligations to the lender.
It should be remembered that personal life insurance for loans, including mortgages, is carried out only voluntarily. A similar policy is designed for those who have issued a mortgage, although when concluding this transaction, only insurance of real estate acting as collateral is mandatory. It should be noted that the financial institution takes into account the contract of personal life insurance when determining the interest rate, and its presence can affect the reduction even to the minimum stipulated amount.
We examined what the “Protected Borrower” program from “Sberbank Insurance” consists of.