Insurance policy replacing a guarantor or mortgage loan, for which mostly pensioners apply, costs several hundreds of euros, or even up to EUR 2,000 depending on clients’ age, writes Pobjeda daily.
A charge for the insurance policy also depends on the loan amount, the repayment period, the age and health condition of a client …The older a client is and the larger the loan amount is, the insurance policy is more expensive. Simple as that.
Some banks are giving the insurance policies for free but then the interest rate is usually somewhat higher.
Also, the policy premium can be paid in lump sum or in installments, while a client cannot be more than 79 years of age at the moment of paying off the last installment. In case a client dies, a loan is to be closed by an insurance company which provided the insurance policy, and heirs would have no any obligation in this regard.
