Pay attention to your contract
In more than 85% of cases, borrower insurance is contracted with the bank that grants the mortgage. We then speak of a group contract. The guarantees are negotiated here for the greatest number and the risks pooled. It is the reverse of a alternative or independent contractwhich offers tailor-made guarantees according to the profile of the borrower.
Yes amount of contributions is a key element to take into account, it is not the only one when it comes to choosing or changing loan insurance. The level of guarantee is also important, especially if you present an aggravated health risk or exercise a dangerous profession. Conversely, if you are young and in good health, opting for an individual contract will allow you to make some savings.
Keep the regulations in mind
In 2010, the Lagarde law introduced the possibility of setting up a loan insurance delegation. In other words, it authorizes the borrower to refuse the insurance offered by his bank, in favor of individual insurance. To complete these provisions, the Hamon law of 2014 gave one year to the insured to make this choice.
Since 2018 and the Bourquin amendmentit became possible to change insurance beyond the first year, on each anniversary date of the contract. It will have been necessary to wait until 2022 and the law of February 28 known as Lemoine lawfor the enactment of a law authorizing borrowers to terminate their insurance contract free of charge and at any time. Since 1is September, this measure concerns new loans as well as loans in progress.
The principle of equivalence of guarantees
Since 2010, policyholders can change loan insurance under certain conditions such as respecting the equivalence of guarantees. The principle is simple, at the time of signing the loan, the contract was associated with a minimum protection that should be respected in future contracts. In most cases, theBanks require you to take out insurance for the following risks : death, total and irreversible loss of autonomy (PTIA), total permanent disability (IPT) and total temporary work disability (ITT).
It is however possible to add other guarantees according to your profilesuch as job loss, permanent partial disability (IPP) or non-objectifiable illnesses (psychiatric disorders or spinal disorders, for example).
Play the competition
Loan insurance is a important expense item that can weigh heavily in the cost of the mortgage. Also, the comparison of contracts and offers is essential. To play the competition, compare the guarantees offered and their relevance to your profile (smoker, athlete, pathology, etc.) and study the different waiting and deductible periods.
It’s never too late to assess your repayment capacity et make savings by changing borrower insurance. Some companies allow you to complete the formalities simply, quickly and 100% online, this is the case withApril home loan insurance.
