Loan payment protection insurance

Security for the whole loan period

Loan payment protection insurance helps to pay monthly loan payments, if you should lose your job or stay on sick leave for more than 30 days.

  • We will cover monthly loan payments for up to 12 months.
  • Insurance premium is 3% of monthly loan payment.

What is loan payment protection insurance?

Loan payment protection allows you to insure your monthly loan payments against situations in which repaying them becomes difficult because of illness or losing your job.

You should consider the conclusion of this contract, if you have loan commitments, but have not sufficient savings to pay the loan payments in case of illness, accident or losing your job.

  • Reasonable price
    The insurance fee is 3% of the amount of monthly mortgage or small loan payment. For example, if your monthly loan payment is € 100, insurance payment is € 3.
  • Conclusion of the contract is easy and convenient
    You can conclude the contract on the Internet Bank. Your contract for loan payment protection insurance shall remain in force as long as your loan contract and shall automatically expire upon termination of the loan contract or until the age of 64 years.

Which cover is provided by loan payment protection?

Falling ill

We will pay benefit, if you stay on sick leave for more than 30 days and if you need a long-term treatment due to serious illness or other health problem. For example, if you are diagnosed with cardiovascular disease.


In the case of accidents, we will pay benefit if you stay on sick leave for at least 30 days. For example, if you have injured your knee and cannot go to work for 3 months.

Loss of job

For example, we will pay benefit upon redundancy, reduction in the size of a company or termination of activity in the case of losing your job.

If you have taken loan with a co-borrower, we recommend that also the co-borrower should conclude the contract for loan payment protection insurance. Even if you continue to repay the loan by yourself, we will pay benefit in the case of an illness or loss of job of the co-borrower.

  • Age of policyholder 18–62 years.
  • Unemployment cover shall take effect 90 days after the entry into force of the insurance contract.
  • Benefit shall be calculated 30 days after the day of occurrence of the insured event.
  • Benefit shall be paid for up to 12 consecutive months.

Terms and conditions

Insurance product information document

How is benefit calculated?

  1. Let’s assume that your loan payment for April is € 210. As April has 30 days, the benefit for 1 day will be € 7 (€ 210: 30 days).
  2. If you fall ill on 1 April and sick leave certificate is prescribed for 50 days, the calculation of the benefit will start on 1 May (30 days after falling ill) and we will pay the benefit for 20 days (50 days – 30 days).
  3. The amount of benefit for these 20 days will be € 140 (20 days x € 7).

Damage indemnify

In the case of losing your job or incapacity for work, please notify us immediately thereof. We will notify of the compensation of the damage within 10 days after having determined the amount of the damage and received the required documents.

The date of payment of the benefit depends on the date by which the policyholder will submit to Swedbank P&C Insurance AS all the documents required for making the decision to compensate the damage. The decision to compensate the damage shall be made after the verification of the documents.

The documents that are required to pay the benefit should be submitted in good time before the next day of the loan repayment. In the case of unemployment, the policyholder can schedule an appointment at the Estonian Unemployment Insurance Fund, in order to submit the documents before the payment date of the loan. The insurer shall not transfer the amount of the benefit directly to the lender but to your bank account.

Necessary documents

In the case of falling ill

  • A copy of the sick leave certificate or any other doctor’s certificate
  • Information from the Health Insurance Fund
  • Document on the results of your medical examination

We will pay for the examination unless the relevant costs are covered by the Health Insurance Fund. In the event of any disputes, we act on the basis of the evaluation of the expert we appoint.

In the case of losing your job

  • Certificate of the Unemployment Insurance Fund about your registration as unemployed or the continuation of your unemployment.
  • Certificates from your present and previous employer and the persons with whom you have or had an employment relationship.

Good to know

Insurance contacts

Loan payment protection insurance is offered by Swedbank P&C Insurance AS.