The borrower loan insurance
The borrower insurance is today a decisive factor in the choice of the leading organization for the subscription of a mortgage. Although this is not mandatory, most banks will ask you to opt for this coverage. What is the purpose of borrower insurance in the context of a mortgage? What are the concepts to know about this warranty? Here’s everything you need to know about homeowner loan insurance. Read http://meadow4.com for a critique
What is the purpose of borrower loan insurance?
The borrower insurance exists on all possible credits (auto, consumption, real estate, etc …).
It offers the borrower the assumption of all or part of the loan deadlines in the event of death, total and irreversible loss of autonomy or temporary incapacity for work.
It may also cover the outstanding capital. When you subscribe, you will be asked for a medical questionnaire. Depending on the answers, the insurance company may refuse, exclude certain risks or offer a premium.
The current rate is also based on the age of the subscriber and the guaranteed capital. Further tests can be carried out if the capital to be guaranteed is high.
Non-smokers can benefit from a discount.
The borrower insurance, some notions to know
When you buy a mortgage, it is imperative to look at not only the overall cost of insurance, which may vary from doubling depending on the banks but also that of the guarantees supported. Indeed, 80% of the borrower insurances require at least three months of incapacity for work before operating the guarantee and 25% of them limit the repayment of the monthly payments following a loss of income. Thus, it is essential to always read all the terms and conditions before you commit.
Employers can provide their employees with a tariff advantage on borrower insurance through collective agreements.
In addition, there is today the AERAS convention which concerns borrowers with an aggravated risk. By aggravated risk is meant a high probability that a guaranteed event will occur (death, disability etc.). This convention offers people who have suffered from a medical point of view in the past, a fair future perspective to achieve their life projects.
The borrower loan insurance and the legislation
New ways to consume appeared about borrower insurance.
The insurance delegation, that is to say having your loan in a bank and insurance in another company, represents 14.2% of the real estate loans in progress.
The laws also go in this direction. The Hamon law now allows any insured to change company once the contract has reached the first year. So you can, over the life of the mortgage, switch to a contract with better guarantees and/or a better rate.