Sberbank’s mortgage borrowers may obtain job loss insurance

Aug 24, 2020

Sberbank insurance, an insurance subsidiary of Sberbank, has marketed Green Vacations (Zelyonye Kanikuly), an all-new policy for mortgage borrowers covering 12 most common job loss scenarios, including downsizing, company liquidation, being unfit for the position, failing the probation period, quitting upon mutual agreement of the parties, etc.

If an insured event occurs, the insurer will be making mortgage payments for a customer until one finds a new job, but for six months at the most. Payouts will be credited to a customer’s account from day 15 after getting laid-off. At the customer’s choice, the payouts can be made monthly or come in a one-off payment after getting a new job, with the latter option fitting those who have savings.

Conveniently, you don’t need a statement from a job center – a passport and your employment record book are enough, or you can use the SberOsmotr mobile app.

Katrin Soomre, Director of Protective Insurance Products and Services Division, Sberbank,

“Job loss insurance is especially relevant now. Although many have resumed their usual ways of life, the feeling of uncertainty about the future remains. The greatest fear of a borrower is the loss of a job and financial hurdles as a result of that. Our policy implies that for six months following an insured event a customer will have money to make mortgage payments. This will prevent payment delays and maintain good credit history, while the loan term will not increase. Soon our other subsidiary, Sberbank life insurance, will offer a similar product to borrowers of consumer loans.”

Green Vacations is available at any Sberbank branch in Moscow when taking out a mortgage. Starting August 26, the policy will be available at any mortgage lending center throughout Russia. Averaging RUB3,500, the price of a policy will depend on your monthly mortgage payments. The term of insurance is one year.