How to choose loan insurance?
If mortgage insurance is not mandatory, it is often required by financial institutions when applying for credit. It is therefore offered directly together with the loan you wish to take out. If you take out insurance with the same company, you will receive a combined offer. But to get a contract that suits you, it is best to choose your insurance yourself. Comparators like Meilleurtaux are your allies in finding the best price for your loan insurance. Their role is to select several offers based on your profile and needs.
What are the guarantees for loan insurance?
The main function of loan insurance is to guarantee the coverage of part or all repayment dates or the remaining sum of a loan.
The death guarantee consists of paying the remaining capital after the lender’s death. It also covers compensation in case of suicide death from the second year of the contract. However, it is valid from the first year in the case of a loan to finance the purchase of a main residence within the limit of €120,000. Note that it is subject to an age requirement.
The guarantee for loss of autonomy refunds the remaining credit under three conditions:
- If the borrower can no longer perform a remunerated activity to pay the monthly installments.
- If he needs full and constant help with daily activities, i.e. grooming, dressing, feeding, etc.
- If the events that invalidate him occurred before the age limit stipulated in the contract, which generally varies between 60 and 65 years or the retirement age.
The guarantee for incapacity for work comes into effect after an illness or accident that has resulted in the borrower’s disability. In this context, the insurance company supports the term of the loan over a maximum implementation period of 1,095 days. Payments cease when the borrower resumes professional work.
The job loss guarantee obliges the insurance company to repay the rest of the credit due to the permanent interruption of the borrower’s activity. When the latter resumes his work, the support is interrupted. However, benefits may be paid if an express clause in the contract states coverage when the borrower takes up a part-time position.
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