OREANDA-NEWS. October 17, 2012. Up to 85 per cent of SEB’s borrowers insure themselves against various risks, the realization of which could severely affect the borrower’s ability to cope economically. As of October the bank is offering a new insurance product, which includes four significant risks at once: death of the policyholder, severe health impairment, temporary incapacity for work and undesired loss of employment, reported the press-centre of SEB Banka.

The borrower can include those risks in their insurance contract that are important to them. During the first week, a third of all borrowers insured themselves against all four risks. Life insurance cover was chosen in insurance contracts by 88% of the people who concluded insurance contracts and insurance coverage in the event of loss of employment by 46% of policyholders.

According to the study conducted in the spring among loan clients, realisation of loan risks (e.g. loss of employment, health problems, loss of person earning most of the income of a family) directly and significantly affects borrowers’ ability to cope economically. When two or more loan-related risks realised during the past five years, the economic situation of 60% of borrowers worsened. Where none of the loan-related risks actually realised, the ability to cope economically decreased in just 10% of cases. Thus, the coping of a family can be kept stable despite economic cycles, by procuring insurance coverage against the risks.

Life insurance cover, impaired risk life insurance cover and insurance cover in the event of temporary incapacity for work are provided by SEB Elu- ja Pensionikindlustus; insurance coverage in the event of loss of employment is provided by RSA Kindlustus. RSA Kindlustus is the trademark of the Estonian subsidiary of Codan Forsikring A/S.