The Bank launches “Credit Protection“ Insurance - the only one of the type on the market

According to a research preformed by UniCredit Group the serious diseases, death, unemployment, unexpected accident resulting in disability to work or a car accident are the main concerns of borrowers. Nearly 70% of these latter wish to get insured against these risks in order to ensure the ease of their families and relatives. Through an insurance of the “Credit Protection“ Insurance type which covers all of these most embarrassing risks the customer acquires the needed confidence that his/her family and relatives would not be burdened with a loan repayment in the course of years in the case of occurrence of any of these risks.

Until now no insurer or bank institution have offered in this country such an insurance package covering the risks under the widespread in Europe “Credit Protection“ Insurance.

In a strategic partnership with the international company “Cardiff Life Insurance” UniCredit Bulbank for the first time in Bulgaria offers to the Bank’s new borrowers an insurance which covers all most embarrassing for the customer risks. The insurance can be concluded for all credit products for individual customers – mortgage and consumer loans. In case of occurrence of any of the risks the monthly installments under the loan or the whole loan amount will not embarrass the customer or his/her family and relatives. Solely at UniCredit Bulbank the borrower will receive also protection against the “Unemployment” risk. Up to this moment the insurance against this risk could not be purchased from any insurer operating on the Bulgarian market.

“The most important fact is that we provide to our customers an insurance which secures the ease of the borrower and his/her family that in the occurrence of any unforeseeable events like temporary or constant disability to work, death and unemployment the payments under the credit are collateralized by the insurance policy and there will be in no way any infringement of the family budget. The initiation of such a strategy results mostly from our endeavors to offer to our customers the best possible insurance product covering the most embarrassing for the borrowers risks”, comments Lyubomir Punchev, Retail Banking Director at UniCredit Bulbank.

The presently offered in mass “Life” Insurance for the borrowers in Bulgaria covers only the death and continuous disability to work risk and involves only the principal but not the interests which remain in burden for the relatives of the borrower. The “Credit Protection“ Insurance covers both the debt and the monthly installments in case of occurrence of much greater number of embarrassing risks, namely temporary or constant disability to work, death, durable illness periods and unemployment. Another facilitating aspect for the customers of UniCredit Bulbank is that it is not required to make any preliminary medical examinations for the conclusion of the “Credit Protection“ Insurance. The insurance conclusion is performed automatically.

All customers having the full “Credit Protection“ Insurance get a 0.4% discount on the interest rate of their mortgage loans. This discount allows the customer to cover his/her insurance premium. In case the customer having a mortgage loan chooses to pay his/her insurance premium under the “Credit Protection“ Insurance by one-time payment for the term of 5 years the latter shall get, without presenting any document, also a specially designed consumer credit in the amount equal to the amount of the insurance premium. In addition, the interest under this loan is the low interest under the mortgage loan. For this consumer credit the customer does not owe any fees and commissions, or 0 leva for document reviewing, 0 leva management commission for all the years of the credit duration, 0 leva commission for pre-term repayment.

The “Credit Protection“ Insurance of UniCredit Bulbank and “Cardiff Life Insurance” is the newest and only one on the market successful mechanism for facing financial difficulties in the most heavy situations of life.