The insurance premium, which corresponds to 3.95 percent of the insured monthly amount, is fixed throughout the insurance period. You pay the premium every month easily via direct debit.
- Monthly cost: USD 500.
- Insurance premium: USD 19.75 / month.
- Monthly cost: USD 1,000.
- Insurance premium: USD 39.50 / month.
More facts about Loan Payment Protection
Loan payment protection is an insurance policy. As a borrower with Nordea, you can take out the insurance if you:
- has signed a loan agreement with Nordea
- is a resident of Sweden
- has turned 18 but not 65
- has a permanent position in the Nordic region of at least 17 hours per week
- have no knowledge of imminent notice of termination or unemployment
When you take out a Loan Payment Protection for a loan, you insure a monthly amount. The amount is the same as the first monthly cost of your loan after taking out the insurance. The monthly amount does not change during the duration of the insurance. If a loan payment protection is paid out, the insured amount is always paid out, regardless of whether the monthly cost of the loan has changed.
You can insure a monthly amount of up to USD 15,000. Your insured monthly amount can be paid by the insurance for up to 12 consecutive months. In total, for several periods, the maximum payment may amount to 36 monthly payments per loan. The insurance is valid for involuntary unemployment or sick leave (at least 50%) due to an accident or illness for more than 30 days.
If you have several loans that you want to insure, you need one loan payment protection per loan. Always consult full insurance terms before taking out an insurance policy.
Exceptions when the insurance does not apply
The loan payment protection cannot be taken out by the self-employed person, see terms and conditions. The insurance does not include unemployment or notice that you knew or should have known about when you took out the insurance. The same applies if you are notified of unemployment within 90 days of the subscription date.
The insurance does not cover a disease, illness or injury that you have known for the 12 months immediately preceding you took out the insurance. No compensation is paid if sick leave falls within the first 30 days of the insurance period. If you should regret, you can cancel your insurance. The right of withdrawal applies 30 days from the day you took out your insurance.
For the purpose of mediating this insurance, Nordea is entitled to compensation intended to cover all expenses that Nordea has for staff, administration, marketing and more related to the insurance. This does not affect the price for you as a customer. The insurance provided by Nordea is specially designed for the bank’s customers. The insurance cannot be taken out directly from the insurer at a different, lower price.
The compensation consists of two parts. The first part is compensation based on the premium each customer pays for his insurance and amounts to 35 percent of the insurance premium. Example: If your insurance premium amounts to USD 39.50 per month, Nordea will receive 35 percent of USD 39.50 in compensation. The second part consists of a profit / loss share where Nordea either participates in a surplus or covers up a loss. The profit / loss ratio is calculated as the result of the sum of earned premiums, after deduction of the compensation Nordea received, administrative expenses, claims settlement and compensation payments.