Loan insurance solution: to insure a loan if the bank refuses
Mortgage broker insurance solution cheap
Loan insurance is a term insurance, limited to the duration of the loan.
The repayment of the loan is thus guaranteed in the event of death of the borrower, the death guarantee can be completed by guarantees of insurance of persons covering the risks of incapacity, disability and even guarantee loss of employment in order to protect the insured in case of accident of life. This insurance is not compulsory but it is most often required by credit organizations.
Why does one have to take out a loan?
Loan insurance is a necessary condition for obtaining credit. There is no legal requirement, but banks, lenders, and credit institutions most often ask borrowers to subscribe to loan insurance that meets the needs of collateral, a real security for the borrower and his borrower. entourage, but also for the lending institution.
How to effectively insure your loan(s)?
The best loan insurance solution is most often the insurance delegation system, so loan insurance is underwritten to the benefit of borrowers, depending on its profile and has many advantages for the borrower:
- simple membership formalities, a really advantageous loan insurance rate, reduced costs and fees, flexibility of options related to age, health status, profession of borrower, amount capacity borrowed more important (big capital).
Mandatory information borrower insurance
The duty of information of the lending organization: For any borrower insurance contract, we give you the necessary information on the guarantees and their cost. And to this end, give a note listing the risks guaranteed and specifying all the terms and conditions of your loan insurance. The preliminary loan offer includes information on the possibility for the borrower to take out equivalent insurance with the insurer of his choice.
Borrower and co-borrower insurance solution
If two people contribute to the repayment of the loan, it will be necessary to ensure that each one is insured in proportion to its contribution or not. The choice of distribution is unlimited, and can be defined by the borrower from the moment the quotations are equal to the minimum at 100%, for example:
- Insurance for each of the entire capital, the insurer then pays the totality of the remaining due in case of death of one of the insured (100% borrower + 100% co-borrower),
- Insurance for each on 50% of the capital, the insurer then pays half of the remainder. (50% borrower + 50% co-borrower) + Insurance Agreement
- Insurance for a borrower on 100% of the capital, and 50% for the co-borrower the insurer then pays the totality of the remainder due in case of death of the borrower or half of the remaining due in case of death of the co-borrower (100% borrower + 50% co-borrower).
The obligations of the insured borrower
For your part, you must communicate to the insurer a certain amount of information that is essential for the assessment of the risks taken into account. You must complete a health questionnaire, using a signed form. Make sure to answer completely and with the utmost accuracy because the statements are binding on you.
If there is an intentional misrepresentation, the insurer is entitled to invoke, on the basis of article of the Insurance Code, the nullity of the contract and to draw the consequences. This means that, in the event of a claim, the insurer will not cover the due dates, with all the financial consequences that may result. In the absence of bad faith, compensation may be reduced if the contribution paid is lower than that normally due.
What are the risks guaranteed by the borrower insurance?
- The death guarantee: the contract always includes this guarantee. The insurance company reimburses the remaining principal due to the death of the borrower.
- The incapacity/work incapacity guarantee: if the disability is permanent and absolute, the insurance company provides the same benefits as in case of death. When it is partial, it is the repayment of the installments as and when due. There is a period, so-called franchise, just after the start of the work stoppage (for example 90 days) beyond which the insurer compensates. The consequences of work stoppages after a certain age, for example 60, may not be covered by insurance.
- a period immediately following the date of enrollment in the insurance and during which the insurer does not guarantee loss of employment,
- an age at which the guarantee ceases, the so-called franchise period following the dismissal beyond which the insurer compensates,
- a maximum number of indemnified installments, in total for the entire duration of the loan, and for each period of continuous unemployment,
- conditions for restarting compensation for unemployment after the loss of a new job.
Who to prevent to play the insurance?
The credit institution acted as intermediary to the membership. It is to him that it will be necessary to address the declaration, preferably by registered letter, to make play the insurance. He will send your claim to the insurer. The latter pays the bank the compensation provided for in the contract.
Whatever the guarantee involved, respect the reporting deadlines in the contract. If you delay, you could lose all your rights, or receive the indemnity only from the sending of your return.