Coop Pank will start offering free loan insurance for home loans
01.07.2019
Coop Pank will add free loan insurance to the home loan agreements entered into as of 1 July. Coop Pank offers this solution, which is innovative in Estonia, in cooperation with If Kindlustus.
Loan insurance gives the borrower an extra feeling of security that the family will not lose the home bought with a loan during any economically different periods that have occurred as a result of unexpected events.
Insurance helps if a person has lost the capacity for work as a result of an accident or illness, or if a person has been away from work for a long time due to their own or a child’s illness. The insurance will pay the loan balance to the bank in the event of the borrower’s death.
“A home loan is usually a long-term obligation, which is associated with various risks,” said Karin Ossipova, Head of Mortgage Lending at Coop Pank. “We want our home loan clients to feel secure, which is why we want to make sure that the borrower or their loved ones don’t end up in financial difficulties in the case of unexpected events.”
Loan insurance is effective for a year and extends automatically for the next period of 12 months. In the case of an insured event, the borrower must inform the bank by sending an e-mail to laen@cooppank.ee.
In the case of a home loan agreement with several borrowers, insurance will cover a part of the loan payment or loan balance that is proportional to the number of the borrowers. For example, if there are two borrowers, insurance will pay half of the loan payments to Coop Pank if one of the borrowers falls ill.
The insurer is If P&C Insurance AS. The terms and conditions of the loan insurance can be found here.