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identify the risks that the loan insurance covers

If the borrower faces an unforeseen event, the insurance company for the contract takes over paying the monthly installments of the remaining capital and thus covers both the lending bank and the customer against the most significant risks incurred during the credit period.

The borrower’s insurance covers risks in connection with repayment difficulties in the event of the borrower’s incapacity, invalidity or death. More rarely, it can also cover job losses. Most of the time the bank advisor will not take the time to explain in detail all the guarantees in your insurance contract. It is therefore better to check the levels of protection offered before signing up and playing the competition.

Several types of risks covered

To understand the intricacies of the borrower insurance contract and the details of the coverage, the loan applicant is always faced with several acronyms:

DC: death benefit

Except for exceptions provided in the contract, all types of death are likely to trigger the implementation of this warranty. Even the insured’s suicide is covered by subscription (with a reimbursement of €120,000 in this case). For loans with several co-borrowers, the guarantee will play on the remaining capital…

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