Protect your future with Loan Payment Insurance

Protect your future with Loan Payment Insurance

  • Choose desired combination of insurance premium and insurance indemnity 
  • Insurance indemnity is paid in cases of loss of job and incapacity for work
  • Protection applies also to incapacity for work due to child’s illness

If you’re unable to work due to lasting sickness, recovery after accident or forced unemployment, Loan Payment Insurance is here to help.

This is an insurance protection that allows you to get agreed amount of money to your bank account due to involuntary unemployment, recovery after a serious accident or lasting sickness, also due to your child‘s lasting illness. You can apply for the insurance if you are Luminor’s Housing loan or Consumer loan customer.

Money payouts – you receive monthly compensation directly to your bank account even if social guarantees are provided from the state.

Stay on track – in tough times insurance may help to keep your accustomed standard of living and your ordinary level of personal budget.

Wide choice – you have an option to choose between minimal protection with insurance compensation EUR 100 per month or optimal protection when insurance compensation amount matches your loan monthly payment.

A convenient time to start – you can apply for Loan Payment Insurance at any moment during the duration of loan agreement but remember - you must start before trouble reaches you or it could be predicted.

Main conditions to apply for Loan Payment Insurance:

  • You have Housing loan or Consumer loan agreement with Luminor which will be valid for at least a year.
  • One insurance contract is linked with only one loan, either consumer loan or housing loan. If you have several loans, then regarding each of them new insurance contract should be concluded.
  • Only borrower and coborrower can apply for this product.

Protection level options

In case of insured event the Insurer will pay every month the amount of insurance compensation chosen in the insurance contract. When you apply for Loan Payment Insurance you may choose preferable coverage – from minimal protection (EUR 100) to optimal protection when insurance compensation matches your loan monthly payment.

Your monthly loan payment, EUR Monthly insurance compensation, EUR Monthly insurance premium, EUR
0.01-100.00 100 4.00
100.01-200.00 200 7.50
200.01-300.00 300 10.50
300.01-400.00 400 12.00
400.01-500.00 500 13.50
500.01-600.00 600 16.00
600.01-700.00 700 19.00
700.01-800.00 800 22.00
800.01-900.00 900 24.00
900.01-1000.00 1000 27.00

Insurance Terms & Conditions

Important!

Important information to know regarding Loan Payment Insurance:
  • The insurance contract can be concluded for 1 year term with posibility to prolong it automatically afterwords.
  • Monthly payment for insurance stays constant if you have selected option to divide insurance premium in 12 equal payments.
  • Insurer will pay compensation for limited time period if the insured event occurs. You will receive compensation from insurer every month during insurance coverage period but not longer than 11 (eleven) months during insurance contract.
  • Your obligations stay the same. You are obligated to pay insurance premium and monthly loan payments during the period when you will receive compensation from insurer.  
  • Insurance coverage is not applicable immediately – you will need to pay insurance premium and will have no possibility to submit a claim until the initial waiting period ends. The initial waiting period is 30 days for lasting sickness and recovery after accident, and 60 days for involuntary unemployment.
  • Short-term mishaps are not compensated. Insurance compensation is paid monthly after an insurance claim submitted is satisfied and period of own risk (deductible period) is applicable. Compensation is not paid for the first 30 days, no matter what kind of insured risk occurs.
  • The initial waiting period does not apply to a renewed insurance contract (from 2nd and following years), but deductible period is applicable for all insurance contracts.
  • Automatic renewal – if you have indicated this option in your insurance contract, then before the expiry of the insurance contract you will receive in your email the proposal for next Loan Payment Insurance contract with all related documents.

Examples

Consumer loan

Daniel took out a Consumer loan contract to buy new car six month ago. The monthly loan payment is EUR 170. Due to reorganisation, he loses his job. Two months before this announcement he concluded Loan Payment Insurance for 1 year with minimal protection – in case of insured risk compensation will be EUR 100 per month.

Breakdown of costs

  • Monthly payment of Consumer loan – EUR 170
  • Selected protection level – EUR 100
  • Monthly payment for insurance – EUR 4
  • Duration of unemployment: 9 months
  • Deductible period: 1 month
  • Insurance indemnity period: 8 months
  • Compensation paid by insurer: EUR 800
  • Annual premium for insurance contract: EUR 48

Housing loan

Anna and her mother Maria live in an apartment. Each month they pay EUR 330 to repay the loan. Maria is already retired and has low regular incomes; Anna pays the entire debt obligations. After a serious bicycle accident, she is unable to work for a significant period and no longer receives her full salary. Two months before the accident she concluded Loan Payment Insurance for 1 year with optimal protection – in case of insured risk compensation will be EUR 400 per month.

Breakdown of costs

  • Monthly payment of Consumer loan – EUR 330 
  • Selected protection level – EUR 400
  • Monthly payment for insurance – EUR 12
  • Duration of illness: 6 months
  • Deductible period 1 month
  • Insurance indemnity period: 5 months
  • Compensation paid by insurer: EUR 2000
  • Annual premium for insurance contract: EUR 144

How to apply?

Submit an electronic insurance application, book a consultation online or in a bank office. We will identify the specific insurance need and interest and make a corresponding insurance offer.

Receive the insurance offer by e-mail and confirm it by paying the first premium

Define further payments in your Internet Bank if you have chosen to divide the total amount into several payments, as well as if you plan to prolong insurance contract automatically

Enjoy Insurance coverage. Coverage for all insured risks will take effect when initial waiting period ends. Promised coverage will continue till the end the insurance contract. In case of an insured event, fill in the claim notification online on „Gjensidige“ webpage or call insurance company via phone 1626.

Disclaimer

Before concluding the Loan Payment Insurance contract, please read the Terms & Conditions and other relevant information of the respective product on Luminor webpage and consult a bank specialist, where necessary. There may be limits to certain insured risks and indemnifiable losses. Full information on exceptions and coverage restrictions is included in the insurance contract and insurance terms and conditions.

See also other insurance products

Home Insurance

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Credit Life Insurance

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Personal Accident Insurance

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When offering the Loan Payment Insurance Luminor Bank AS (reg. No 11315936, address: Liivalaia 45, Tallinn, Estonia) represented within the Republic of Lithuania by Luminor Bank AS Lithuanian Branch (Branch code 304870069, address: Konstitucijos ave. 21A, Vilnius) acts as an insurance agent, distributing a Loan Payment Insurance on behalf of ADB “Gjensidige” (reg. No 110057869, address: Žalgirio g. 90, 09303, Vilnius). Luminor Bank AS is registered in the list of intermediaries kept by the Estonian Financial Supervision and Resolution Authority (Finantsinspektsioon) (Estonian Financial Supervisory Authority) and is entitled to provide insurance intermediation services in Lithuania on the basis of the principle of freedom of establishment. Luminor Bank AS shall process your personal data to prepare insurance offer and forward them to insurer.