Home loan insurance intervenes in the event of life accidents that would deprive the borrower of resources to repay his debt. THE work stoppages are covered by the warranty HERE. This guarantee contains a subtlety that can deprive the borrower of compensation if he does not meet the conditions stipulated in the contract. Magnolia.fr explains the particularities of the ITT guarantee.
What is the ITT warranty?
In borrower insurancethe bank requires subscription to various warrantiesthe two coverages imposed being the death and PTIA guarantees (Total and Irreversible Loss of Autonomy). Are added according to the profile of the borrower the invalidity and incapacity guaranteesmore rarely job loss.
If the loan is intended to finance a residential purchase (main or secondary residence), the bank requires you to take out the warranty HERE or Temporary Total Incapacity for work. It is optional for a rental investment because of the future income from rents which can compensate for a possible drop in resources. As its name suggests, the ITT guarantee comes into play when you are placed in work stopping.
How does the ITT warranty work?
The ITT warranty covers you if you are in work stopping for illness or accident, in such a way temporary. It comes with a grace period which ranges from 15 to 180 days: after this period of time, you begin to be compensated. For the liberal professions and the TNS, the grace period of the ITT is shorter, and varies between 15 and 60 days.
The refund is lump sum or indemnity depending on the option chosen when subscribing. In indemnity mode, the benefits paid by the insurer take into account the real loss of income : the daily allowances from the Health Insurance and any benefits from the employer or from a provident contract are deducted. In flat rate mode, you receive the sum defined at subscriptionregardless of the social benefits you receive, up to the loan insurance quota (100% if you borrow alone, variable according to the distribution defined if you borrow together).
The maximum duration of implementation of the ITT guarantee is 1095 days, the coverage ending at any resumption of activity, even partial. Some contracts provide for compensation in the event of half-time therapy. Work stoppages related to the pre and post natal leave are excluded from the scope of the ITT. Only the pathological pregnancy is covered by the warranty.
If, after 1095 days, you have not resumed your professional activity, a invalidity guarantee depending on the degree of disability and subject to subscription, after consolidation of the state of health checked by the insurer’s medical advisor:
- IPT (Total Permanent Disability) guarantee: the degree of disability must be between 66% and 99%
- the guarantee IPP (Permanent Partial Disability): the degree of disability must be between 33% and less than 66%
The invalidity and incapacity guarantees cease automatically as soon as you assert your pension rightsand at the latest to your 65 ansexcept for exceptions such as the contract ofApril home loan insurance which provides for the maintenance of these guarantees until December 31 of the year of your 71th birthday if you are still in gainful employment.
The subtlety of the ITT guarantee: SA or any profession
The ITT warranty contains an important detail that you should not overlook. It comes into play if you are unable to exercise your professional activity or any professional activity. The subtlety is considerable: in the first case, the insurer’s medical adviser declares that you are not unfit to do your job ; in the second you can be declared able to workand reclassified to a different post.
The insurance ombudsman recently cited the example of a paramedic placed on sick leave following a car accident. The insurance agreed to compensate him initially, then, following a medical report, stopped covering the monthly payments of the credit because the borrower had been declared fit for the resumption of a professional activity.
The loan insurance contract mentioned that the implementation of the ITT guarantee involved the iimpossibility for the insured to exercise any professional activity. If he was unable to return to his job as an ambulance driver, he could, on the other hand, be professionally reclassified to an administrative position. The insured did not then fulfill the contractual conditions stipulating theimpossibility to exercise any professional activityand could not claim the benefit of the ITT warranty.
Correctly re-read the general conditions of your borrower insurance contract and if you consider yourself poorly protected by ITT warranty in the event of a work stoppage, terminate! In accordance with the Lemoine law, you have the opportunity to change mortgage insurance at any time and free of charge, without waiting for the due date.
Put the offers in competition via a home loan insurance comparatora simple, fast and free tool that gives you access to best offers on the market. One last piece of advice: get someone to accompany you. borrower insurance broker to understand well the scope and subtleties of the guaranteesand select a competitive contract that meets your requirements and those of the bank.
2023-04-25 09:34:07
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