Since the Lagarde law on the delegation of insurance, the Hamon law on the termination of loan insurance contracts, and the Bourquin amendment, any borrower has the possibility to choose another insurer than that of his bank, or to terminate his insurance contract during the first year of the subscription and on each anniversary date. This allows for personalized guarantees and lower costs, as the premium takes into account the decrease in credit over time. But how to choose your loan insurance? Well, we tell you!

1. Compare the guarantees

1. Compare the guarantees

While the death and PTIA guarantees (total and irreversible loss of autonomy) are similar from one insurer to another, some other guarantees do not offer the same cover for mortgage insurance. For the incapacity of work in particular, one must be vigilant on:

  • the level of disability required to trigger the compensation, which varies from 33% to 66%;

  • the nature of the reimbursement (lump sum or indemnity);

  • the type of disability, which can sometimes give rise to unpleasant surprises (eg if the insurer requires that your incapacity to work concerns all professions and not just yours);

  • the very definition of permanent or total disability, which is not always the same and gives rise to different scales and rates;

  • the period of unearned coverage, as some insurers do not compensate for non-working periods such as parental leave or unemployment;

  • Exclusions that differ depending on the contract (physical, psychological, risky, extreme sports, etc.), by carefully consulting the general conditions.

2. Compare the deadlines

2. Compare the deadlines

Whether one speaks of franchise, waiting period or duration of compensation, the differences are significant according to the mortgage loan insurance offers :

  • The deductible in case of work stoppage for example, is a period during which you will not be compensated. It can vary from 3 to 6 months.

  • The waiting period, during which time you are not covered, is not always the same. Except in case of accident, you must be compensated.

  • The duration of compensation is limited in case of loss of employment or temporary incapacity for work, be vigilant on this point.

3. Compare costs

The premiums compare against the guarantees offered by the borrower insurance. Nevertheless, some insurers offer preferential rates for people under 35 years of age. Others do not insure the over 65s or apply high rates.
To compare at a glance the overall costs of different home loan insurance, you can use their TAEA, which includes all of their costs, whether it’s the insurance rates, or the fees.

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