How the property insurance is connected with life insurance?
As mortgage contracts are concluded for long-term so the insurance (for all term of repayment of the credit) is a some kind of protection or a safeguard from the unforeseen situations connected with loss of a life of the borrower or the loss of the possibility to work effectively. This condition it will not be possible to bypass, however to optimize expenses on it is possible.
Why is this so necessary? For bank it is actually very important as it guarantees to itself fast return of means. The borrower thus relieves the relatives of possible promissory notes before bank and keeps the bought real estate for a family.
Realization of mortgaging apartment in case of death of the borrower which has not been insured and also eviction of its relatives is very unpleasant procedure.
If the successors have a possibility and desire they can renew the credit and continue its payment or agree on sale of habitation which can occur only in half a year (according to the legislation, in this time everyone who has the right to the inheritance can enter it). In the latter case the part of means exceeding a debt to bank is transferred to a family of the borrower.
Repays at once debts under the credit to bank and the property right to apartment passes to successors and they do not bear from a bank any promissory notes.
Also there are “risk” and so-called “life” companies in the insurance market work today. Those companies can conclude with the borrower the insurance contract on a case of death, physical inability or a traumatism. “Life” insurance companies cover the listed risks which have occurred for any reason, including through illness. Some “risk” companies supplement the policy also with insurance on cases of concrete critical diseases (for example, a heart attack, a stroke) which also register in Rules of insurance of the company.
Risk insurance guarantees payments as a result of in advance established reasons (road accident, a lightning stroke, crisis, a sting of animals, burns and so forth), entering into concept of “accident”.
This list registered in Rules, can slightly differ in different insurance companies and therefore it is better to get acquainted with it.
Lists of exceptions and the bases for the refusal specified in the contract are much more various and referring on which the company will have the right to refuse payment of insurance compensation.
The reason for refusal from insurance payment can serve both untimely informing on insured event approach and giving of obviously inexact information at contract registration and also the period of a delay of payment. If the borrower brings insurance payments at the wrong time bank have the right even to terminate the credit contract and to demand loan return.
Now the part that is very crucial for your search of the insurance price quotes…
It is simple: a final piece of advice – today the web technologies give you a truly unique chance to choose what you require for the best price on the market. Strange, but most of the people don’t use this opportunity. In real life it means that you should use all the tools of today to get the “compare insurance companies” info that you need.
Search Google or other search engines. Visit social networks and check the accounts that are relevant to your topic. Go to the niche forums and participate in the discussion. All this will help you to create a true vision of this market. Thus, giving you a real chance to make a wise and nicely balanced decision.
P.S. And also sign up to the RSS feed on this blog, because we will everything possible to keep updating this blog with new publications about insurance price quotes and other topics of the big and versatile insurance industry.
RSS FEED
