The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan has published consumer guidance on borrower life insurance linked to mortgages, explaining how the product works and stressing that it is voluntary. Under Kazakhstan’s law on banks and banking activity, banks may not compel a borrower to buy this insurance or make it a mandatory condition for obtaining credit. The agency said a standard policy typically covers death caused by an accident or illness, the assignment of first or second group disability, or loss of working capacity with disability status. In the event of death or full loss of working capacity, the insurer pays the outstanding loan balance to the bank, and in cases of temporary incapacity such as illness it may cover monthly loan payments during the recovery period. The guidance also warns borrowers to review policy terms carefully, especially exclusions where no payout would be made. If there is no life insurance policy or an insurer refuses payment because the event falls under an exclusion, mortgage obligations do not end automatically. In that case, the debt forms part of the estate, and heirs who accept the inheritance are responsible for the deceased borrower’s debts up to the value of the inherited property.

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