Best term life insurance rates

Best term life insurance rates

Banks are taking a decision on the application for credit, including consumer, prefer to choose those clients whose life is insured. Borrowers go to it reluctantly, many can not, getting a loan, to terminate contracts of insurance. Nevertheless, this business is gaining momentum as rapidly developing consumer loans offer better interest rates for life insurance.

Best term life insurance rates

Offering a borrower to insure his life, so banks are trying to protect themselves in case of disability due to accident, disability and death of the client. If such an event occurs, the bank will pay the insurer. As a rule, life insurance, the lender insists that the case of a large loan. Life insurance - is voluntary, but the bank may refuse to credit, without explaining the reasons, if the client does not want to insure, or use other arguments. Banks offer best term life insurance rates, but "Sometimes in the event of failure to purchase a life insurance policy bank may raise the rate on the loan, that is actually" insured "other way", - said the deputy chairman of the personal insurance company "ERGO Rus' Michael Chekhonin.

Borrowers have found a way out. Some of them are receiving credit, dissolve the contract with the insurer, and such attempts are more and more. "After some borrowers loan write an application to the insurance company to terminate the contract and return of premium" - the director of the center for the development of mortgage insurance and retail banking risks "Alliance" Vitaly Us. They are motivated by the fact that they were misled because they do not know that life insurance - optional insurance.

Clients do not perceive insurance as a protection of their own interests, budget and ultimately the interests of his family and did not want him to pay extra money because the best interest rates for life insurance are not included in the cost of the policy, but depend on a number of parameters, in particular on the age of the borrower , term loans, the loan amount. For example, in "ERGO Rus' for the 30-year-old man who takes the credit in the 300 thousand rubles. for the year, the cost of the policy will be 4 thousand rubles. And in "Renaissance Insurance" for a man 35 years old, who takes a consumer credit 150 thousand rubles., Say, to buy food, the cost of the policy will be 375 rubles. for the year.

If something happens with the lender, convince insurers to pay the debt obligation of the Bank lays down on his family. "However, many perceive insurance as an unnecessary application to credit, high cost of its value. I would not like to make people aware of the need for insurance on their own bitter experience, having lost the ability to work or losing a family member, which is paid for from the earnings credit ", - says Mikhail Chekhonin.

The dynamics of this part of the business of life insurance depends on how the self develops consumer lending. It is not always possible to obtain the best interest rates for life insurance. "If 2009 was characterized by stagnation, premiums have declined in the whole market by 40.6%, then in 2010 we have seen an impressive growth of 61%, which was due to a significant increase in the volume of consumer lending. This growth continued into 2011, "- says the managing director of massive insurance group" Renaissance Insurance "Elena Skuratov.

Term life insurance rates

The share of the classical life insurance (not tied to credit) in the total insurance market in Russia in 2011 was one of the lowest in the world - only 2.7%. While in countries with developed economies, the figure is about 50%, which is comparable to the turnover to the market of property insurance and liability. Traditionally, life insurance programs are divided into two main categories - risky and mixed. In the first case deychtvuyut best interest rates on life insurance with an insurer to pay compensation if his client will receive, for example, is found to be injured or disabled. That is, the contract covers a specific set of risks for a certain period of time. The second category of insurance products also includes protection against various risks, but also implies the possibility of a nested amount by the agreed deadline. In other words, when the insured event company pays compensation under this agreement remains in force if the policyholder pays the premiums. The final amount that the client should receive a stipulated in the contract term remains unchanged. If the client dies, both the first and second case, the beneficiary receives the money specified in the policy, or the heirs.

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