Insurance File: how does it work?
In addition to finding the best rate for your credit, some additional costs add to the overall cost of the loan. Loan insurance is part of these fees and has a considerable impact on the cost of a loan. So, it is interesting to wonder: how does it work loan insurance?
Key points to know when choosing your mortgage insurance
- Death-disability / disability benefits (ADI)
- The health questionnaire / medical questionnaire
- Total cost, annual cost and cost
- The franchise period
- The waiting period
- The job loss guarantee
A credit rate conditioned by the subscription of the group insurance
The consumer association UFC Que Choisir denounces banks that very often apply a mortgage rate is conditioned by the membership of their group insurance contract.
Offering Individual Loan Insurance Contracts, the Mortgage Loan Insurance Broker aims not only to lower the cost of insurance as much as possible, but also to increase access to loan insurance for risky borrowers. aggravated medical, aggravated professional risk or a sporting risk, and found itself facing a bank credit insurance refusal to guarantee their real estate or professional project.
Realize a mortgage insurance simulation to save money!
Individual loan insurance: how does it work?
The basic guarantees of a loan insurance contract are the “death” and “disability” guarantees (Total and Irreversible Loss of Autonomy – PTIA). It is then possible to add the guarantees “temporary or permanent incapacity for work” and “loss of employment”.
Health questionnaire: how does it work?
The health questionnaire, or medical questionnaire, determines the conditions of adhesion to the credit insurance contract as well as the implementation of the guarantees of the contract. The borrower must complete it before the contract is signed so that the insurer can assess the risks and set a credit insurance rate, with or without surcharge (linked to health problems or risks). Any misrepresentation or lack of precision may result in the insurer’s refusal of compensation.
Cost of death and disability insurance: how does it work?
The tariff is set either as a percentage of the borrowed capital (for group contracts) or the outstanding capital (for most individual insurance contracts). The cost of borrower insurance depends in particular on the age of the borrowers and their situation.
Franchise and deficiency periods
The franchise period can vary from 3 to 6 months depending on the insurance companies. This is the period during which the loss is not covered by the insurer.
The waiting period is usually 90 days. This is the period during which the insured must wait before the insurer pays compensation following the occurrence of a risk.
The guarantee of loss of employment
It covers the monthly payments during a period of unemployment of the borrower. Its conditions vary depending on the insurance companies. A waiting period is imposed before the guarantee takes effect. To obtain this guarantee, the borrower must exercise a salaried activity in Contract with Indefinite Duration and be able to benefit from unemployment benefits.