Mortgage insurance
Financial security for the home and family life
Mortgage insurance
If you have a housing mortgage with Landsbankinn, you get a special deal on life insurance from Sjóvá. Mortgage insurance is a type of insurance that contributes to the financial security of family members if the borrower passes away.
Security for the household
Our homes and families are among the most treasured aspects of our lives. We never expect to experience serious events but when they do occur, they can have a huge impact not only on our lives but also our finances. It’s important to have safety nets in place to catch us when the unexpected occurs. While traditional insurance is an important part of coping with loss of income, mortgage insurance is especially designed to lower housing loans and thereby debt service in the event of the death of a borrower.
The mortgage is insured upon the death of a borrower
Upon the death of a borrower, the amount of the mortgage insurance is paid directly to the housing mortgage. Mortgage insurance lowers the debt service of surviving family members based on the amount of the insurance, making it more likely that they can remain in the same home despite changed circumstances. This insurance can amount to up to ISK 20 million, with the premiums depending on the insurance amount, age of the borrower and smoking habits.
About mortgage insurance
The terms and conditions of Landsbankinn’s mortgage insurance are available on Sjóvá’s website.
Choose your coverage
Example for illustration purposes. A single, 35-year old parent (non-smoker) pays ISK 1,750 per month during the first year of taking out a mortgage insurance policy which pays off an ISK 15 million housing mortgage with Landsbankinn should the borrower die. Cohabiting partners pay ISK 2,000 per month during the first year of taking out a mortgage insurance policy which pays off half of an ISK 20 million housing mortgage with Landsbankinn should either partner die. Both borrowers are thirty and non-smokers.
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