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Illness and unemployment protection

  • 86% of cases was due to incapacity to work.
  • Average amount paid in claims was 376 euros.
  • We paid out 599 000 euros in insurance indemnities.

Insure yourself against unemployment and incapacity for work

Loan Payment Protection Insurance helps you to pay the monthly loan payments in case you:

  • losing your job unexpectedly;
  • stay on sick leave for more than 30 days also due to your child‘s illness;
  • temporary incapacity for work due to e. g. a trauma or another accident.

In case of unemployment or sick leave we will cover amount of your loan payments for up to 12 months.

*A summary of losses in 2018 according to the data of Swedbank P&C Insurance AS Lithuania branch on outpaid insurance indemnities.

Swedbank Illness and unemployment insurance and virus COVID-19: what clients need to know?

Information about Illness and unemployment insurance and answers to your questions can be found in a specially prepared post.

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  1. What is the benefit of the Loan Payment Protection Insurance if you have a loan?

    2. You will be paid an indemnity for loss of job or incapacity for work due to an illness for up to 12 months if:

    • You have lost job at the employer’s initiative or by mutual agreement of the parties upon the employer’s proposal (initiative). Important! In order to be paid an indemnity you must be registered with the Employment Service as a job-seeker.
    • You have fallen ill and have become incapable for work. Important! In order to be paid an indemnity you must have a certificate of incapacity for work issued by a doctor in case of an accident or an illness.

    Please note that indemnities for loss of job or incapacity for work due to an illness will not be paid for the first 30 days after losing job or getting ill. Indemnities will be paid for no longer than 12 months.

  2. Is epidemic or pandemic included in the list of non-insured events?

    3. No.

  3. Is the client obliged to pay a premium according to the Loan Payment Protection Insurance contract, if he/she has been granted a grace period for loan repayment?

    4. Yes. Loan Payment Protection Insurance premiums are calculated on the basis of the actual loan payment of the respective month.

    For example, if the client only pays the mortgage loan interest during the grace period, an insurance premium is calculated on the basis of the interest amount. After the grace period is over, an insurance premium is calculated as usual, i.e. on the basis of the full monthly loan payment.

  4. What should a client do if he/she is covered with the Loan Payment Protection Insurance and has lost his/her job during the grace period?
    • The client should notify the insurance company of the event no later than within 7 business days by a message on the Internet Bank or by calling 1884.
    • Upon losing job, the client must register with the Employment Service as a job-seeker.
  5. Will the client be paid an indemnity, if he/she has a certificate of incapacity for work because he/she must stay at home due to quarantine or take care of his/her underage child (the client and his/her child are not ill)?

    6. No. Observing quarantine rules or staying at home without being ill are not considered to be insured events.

  6. Will the client be paid an indemnity, if he/she has been forced to take an unpaid leave for an indefinite period of time?

    7. No, because the client still has a valid employment contract.

  7. Will the client be paid an indemnity, if he/she has concluded a Loan Payment Protection Insurance contract and has lost job several days afterwards?

    8. No, because the unemployment cover takes effect 90 days after the insurance contract has come into force. If the client concludes a contract when he/she is unemployed, the unemployment cover takes effect after he/she starts working and 90 days pass after the first day of this employment contract.

  8. Will the client be paid an indemnity, if he/she has been diagnosed with coronavirus?

    9. Yes, but the indemnity will not be paid for the first 30 days of an illness.
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Loan Payment Protection is an insurance designed specifically for only Swedbank borrowers. It is possible to conclude insurance agreement together with new loan, it means 30 days counting since loan contract conclusion. The insurance will alleviate your financial burden in case you will be unemployed or be on incapacity for work.

  • With the Illness and Unemployment Protection Insurance, you will receive an amount equal to your monthly loan repayment amount every month until you return to work (in the case of losing a job – until you find your new employment), however, for not more than 12 months.
  • The insurance fee is 3% of your monthly mortgage and 4% of your monthly small loan payment. For example, if the monthly mortgage loan payment is €100, the insurance premium is €3.
  • You can conclude the insurance contract, if you still have at least 1 year of your loan agreement repayments, and if the loan balance is more then €500.
  • We recommend that also the co-borrower conclude the insurance contract.

In case of incapacity for work

If you or your child gets ill unexpectedly, suffers a trauma, etc., and a more than 30-day treatment is required, we will provide an indemnity that covers your monthly loan payments for the sick leave period.

In case of unemployment

We will pay you the indemnity, if for example, you are offered an agreement to terminate employment, you are given a notice of termination of the contract due to downsizing or eliminating your position in a reorganised company.

The unemployment cover will take effect 90 days after the insurance contract has come into force.

The indemnity will be calculated starting from 30 days after the ensured event.

 After signing a new loan conctract your monthly payment will be visible in the internet bank. Conclude an insurance contract by confirming it in the internet bank within 30 days of loan contract signing.

For illness the insurance cover will take effect immediately.

For unemployment the insurance cover will take effect 90 days after the insurance contract has come into force.

If you lose job:

  • keep documents certifying termination of your employment contract (a copy of the employment contract, documents of dismissal agreement, etc.);
  • get registered with the Employment service (former Labour Exchange).

Fill in the form of event notice

If you lose capacity to work because of illness or accident:

  • Event (accident, trauma or illness) must be certified by a certificate of incapacity to work issued by a doctor.

Fill in the form of event notice

If insured event occurs, our damage experts will provide professional assistance to you.
  • Please be informed, that in case of insurance indemnity payout, insurer will pay out to your bank’s account, therefore you have to continue with your loan monthly payments according to your loan agreement.
  • The indemnity will be calculated starting from 30 days after the insured event takes place.
  • The maximum period for being indemnified is 12 consecutive months.
  • The indemnity will be paid to your bank account.

Example:

If your monthly loan payment is €210 and you fall ill for 50 days, then you‘ll get the indemnity for 20 days. Daily indemnity is €7 (210 € : 30 days). The amount of benefit for these 20 days will be € 140 (20 days x € 7).

Insure your life if you have close ones you care about, and who depend on your income.

Insure yourself against a sudden illness or unemployment in the amount of credit card liabilities.

Loan that can help you to fulfill your plans!

Contacts

  • +370 5 268 4444
  • info@swedbank.lt
  • Insurance services are provided by “Swedbank P&C Insurance AS” Lithuanian branch through representative “Swedbank”, AB.

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