According to a survey conducted by SEB, most clients who have taken a home loan are afraid of unemployment (69% of the respondents), an increase in loan interest (50%) or a decline in health (42%). Of the participants, 66% have insurance against risks related to the loan or are planning to get one.
The largest percentage of borrowers have insurance for permanent health damage (59%) and the loss of their job (51%). Following that are temporary incapacity for work (44%) and loss of the primary breadwinner (40%).
Out of the 34% of respondents without an insurance contract, close to half expressed their concern that in case of an insured event, the insurer would nevertheless try to evade from paying the benefit, which is why insurance would prove useless. More uncommon justifications were the cost of the insurance and not having had the time to look into insurance products yet.
All the potential risks of taking a loan are least intimidating for a man with higher education, aged 26–37, who has taken the loan for a longer period and is able to put more than 100 euros from their monthly income into savings.
Triin Messimas, Development Manager of Private Loans at SEB: “The risks feared are different between the various groups of borrowers. Women, for example, are a bit more afraid of losing their jobs (71%) than men (67%), Russian-speaking respondents more than Estonian-speaking respondents. An increase in loan interest is more of a concern for younger respondents. Out of the youngest recipients of a home loan, aged 18–25, 56% are fearing an increase in expenses and the need to limit their consumer habits as a result of their loan. In general, awareness among borrowers is rising and they tend to believe that insurance really can be beneficial in case of unexpected events.”
*The survey was conducted in the period between 3 March and 4 April. The sample consisted of clients who had taken a home loan from SEB between 2011 and the present. There were 1,343 respondents to the survey.
