Riziko Life insurance
Life insurance of the loan beneficiary
With retail lending, especially when it comes to housing loans, business policy of a lot of banks includes a requirement that the borrower must have a life insurance during the repayment period, that is, he has to obtain Riziko insurance. In other cases it is optional, but mostly with certain benefits regarding the approval of loan conditions, primarily lower insurance costs with the NMIC (National Mortgage Insurance Corporation). Besides the fact that Riziko insurance can present a requirement for loan being approved or not, it ensures the financial security of the family of the loan user. For this purpose we created a special life insurance for loan users, with declining sums of insurance which follow the rest of the principal amount of the loan debt. Are you planning to raise a long term housing loan, and the safety and well-being of your family comes first? Then this is the right insurance for you!
Main features of Riziko insurance are:
- Riziko insurance with a small premium provides a lot of coverage;
- The duration of Riziko insurance is equal to the duration of loan repayment;
- Currency clause of Riziko insurance, premium and the sum insured are stated in euros;
- Insured sum is paid out only in case of death of the policyholder for the duration of Riziko insurance;
- Riziko insurance does not have a savings component;
Riziko insurance covers the following risks:
- Riziko insurance in case of death;
- Riziko insurance in case of death due to an accident.
Depending on the insured amount, which is determined by the size of loan, it is possible to obtain Riziko insurance with or without medical examination (The insurer has the right to ask for it though), that is:
- Riziko insurance without a medical examination for the insured sum of up to 40,000 euros;
- With Riziko insurance, a medical examination is required for all insured sums of over 40,000 euros, regardless of age.
The main function of Riziko life insurance is to guarantee repayment of the loan, usually a housing loan, and not only from the aspect of the bank, but also the family of the borrower. If an insured event occurs, family will not inherit the debt arising from the loan, and there is no fear that the bank will activate the mortgage or seize the residential unit if the loan repayment has stopped. Therefore the family is financially protected, and debt to the bank will be paid by the insurance company.