The law, carried by the deputies of the majority Patricia Lemoine and Olivier Becht, which will allow borrowers to terminate their borrower insurance at any time of the year was adopted at first reading almost unanimously by the National Assembly. What will she change? Update with Olivier Lendrevie, president of Cafpi.
The fourth will undoubtedly be the right one! After the Lagarde law which allowed borrowers to present individual insurance instead of the bank’s group insurance when signing a mortgage, the Hamon law which gave them one year to change insurance after the credit subscription and the Bourquin law which extended this possibility to each anniversary date of the loan contract, the deputies adopted today by a strong majority (61 votes out of 64) a bill authorizing the change of borrower insurance to any time. “The liberalization of creditor insurance, of which 88% of the market is still held by banks, seems, this time, well and truly done. After the National Assembly, it must now be validated by the Senate ”, observes Olivier Lendrevie, president of Cafpi.
An infra-annual termination possible
The law, carried by the deputies of the majority Patricia Lemoine and Olivier Becht, will allow borrowers to terminate their borrower insurance at any time of the year, like what already exists for other types of insurance. : automobile, home, health and affinity contracts. The text also strengthens the duty of information and transparency of lending institutions by imposing on them, in particular, the obligation to inform policyholders each year of their right to terminate their borrower insurance at any time as well as the terms and deadlines to be observed. to do it. “The effects for borrowers will not be felt immediately, the text leaving banks a period of one year from the enactment of the law to organize themselves”, tempers Olivier Lendrevie.
Significant savings at stake
This liberalization is all the more appreciable as, in the current context of low interest rates, the weight of borrower insurance in the overall cost of a mortgage has become very important. “Opting for individual insurance can make it possible to achieve a substantial saving of € 15,000 on average over the term of a loan,” emphasizes Olivier Lendrevie. The savings are particularly strong for young and healthy borrowers.
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Example 1 couple of 40 years old, on permanent contract, non-smokers
Loan of € 240,000 over 15 years for the purchase of a main residence and 100% death, disability and temporary incapacity for work guarantees for each borrower Group insurance from the bank: € 144 per month for the 2 borrowers, i.e. a total cost of € 25,920 Individual insurance (delegation of insurance): € 48 / month, for a total cost of € 8,640. Savings achieved: € 17,280.
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Example 2 singles, 24 years old, on a permanent contract, non-smoker and athletic
Loan of € 165,000 over 25 years Group insurance from the bank € 50 / month, ie a total cost of € 14,850 with 100% guarantees for death, disability and temporary incapacity for work. Individual insurance (delegation of insurance): € 7 / month, for a total cost of € 2,100 Savings made € 12,900.
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Easy access to loans for patients and former patients
The second part of the law provides for extending the “right to be forgotten” from which some former cancer patients have benefited, since 2016, within the framework of the Aeras agreement. If the terms of this “right to be forgotten” have been gradually reinforced (in 2020, for example, the period has been reduced from 10 to 5 years after the last treatments for a cancerous pathology occurring before the age of 21), the law provides for to take a new step by once again lowering the deadlines for the “right to be forgotten”. “.
Work should be launched on this subject within 3 months of the law being promulgated. For people who are not eligible for the “right to be forgotten”, the Aeras agreement has a reference grid with a list of pathologies. The text voted today envisages introducing new pathologies, in particular non-cancerous ones. The first fallout from this provision should not come for at least nine months.
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