Credit life insurance

Credit life insurance is intended for borrowers (aged between 14 and 60) of loans with a period of repayment over 5 years.

• additional security for borrowers and their heirs, as the loan repayment is not charged to the latter in the case of borrower’s premature death;
• the time of insurance premium payment equals 2/3 of the insurance duration (e.g. if the duration of insurance is 15 years, the time of insurance premium payment is 10 years);
• tax benefits:
  • insurance fee, which is paid out by the insurance company to beneficiaries for the case of death is exempt from payment of personal income tax;
  • if insurance is taken out for at least 10 years, it is exempt from payment of 6.5 % tax on insurance services.

Basic insurance coverage includes insurance for the case of death.
The amount of the sum insured for the case of death is adapted annually to the amount of the unpaid part of the loan; due to annual decrease of the sum insured, the amount of the premium is significantly more favourable compared to other types of life insurance.

You can also choose among various supplementary insurance coverages, for example:

• supplementary accidental death insurance;
• supplementary insurance for the case of accidental death in a traffic accident;
• supplementary insurance for critical diseases;
• supplementary insurance for specific surgeries;
• supplementary hospital allowance insurance;
• supplementary daily allowance insurance;
• supplementary accidental disability insurance – linear or with progression of 540 %;
• termination of premium payment in the case of total permanent disability.

The duration of insurance usually equals the housing loan repayment period, whereby you decide on the inception of insurance:

• insurance may be valid for the current month, when the loan was taken;
• or it may become valid as of the first day of the following month.

Insurance premium is paid by direct debit to your personal SKB account monthly, quarterly, half-yearly or annually.
 

Example of informative calculation:

* The min. mothly premium can be 10 EUR. The monthly insurance premium will not change throughout the duration of the credit life insurance.

In order to take out the credit life insurance, you need the following:

• personal SKB account;
• personal identity document (passport or identity card).