Borrower insurance: play the competition

It is now possible to change your mortgage insurance at any time. The possibility to lower your bill with equal guarantees.

Warranty issues

Although not mandatory when buying real estate on credit, insurance is always required by the bank. And for good reason: it allows (subject to conditions) the repayment of the remaining capital to the bank in the event of death, disability, incapacity or even loss of employment. It was so far difficult to escape the contract that the bank offered when taking out the loan, and complicated to change it later. From now on, any borrower can replace his insurance with a competing offer with equivalent guarantees. (Law No. 2022-270 of February 28, 2022, known as Lemoine) . This right is valid at any time, a few days or years after the start of his credit.

The aim: to provide access to contracts that are cheaper than those of the banks and to restore purchasing power to households.

+ The full life: The weight of insurance in the total cost of a loan is often overlooked by the borrower who is concerned about making 0.10% on the loan interest when accepting full insurance!

new rights

It is up to all insurance companies to inform their customers about the new right of substitution and the conditions for its implementation. To validate this substitution, you must present your bank with a contract with a guarantee level equal to its own. The Financial Sector Advisory Committee (CCSF) has drawn up a grid of required guarantees.

The rights of the insured have been strengthened by two other measures. Firstly, it is no longer necessary to complete a health questionnaire for a home loan of less than €200,000 (€400,000 for a couple) and for which the refund will be settled before the insured’s 60th birthday.

Until now, it has been necessary to declare any illness that poses a health risk, leading to an increase in the contribution or an exclusion from coverage.

Other progress: former cancer or hepatitis C patients no longer have to declare their disease five years after the end of their therapeutic protocol (ten years before the law) when the cancer was diagnosed after 21 years, except in case of relapse.

+ The full life: Don’t delay changing insurance during the loan: the sooner you act after getting it, the more you will win financially.

Why change the contract

First reason: to save money. It is impossible to give a precise amount, the latter depends on various criteria (borrower’s age, insurance amount, duration of the loan, selected guarantees, etc.). Brokers and alternative insurance companies quantify the gain at several tens of thousands of euros per month or savings in thousands of euros over the course of the loan. This is especially true for households aged 45 and under, although you can still earn well over 50 without cutting guarantees or even improving them.

This is the second reason to have competition: improve your coverage. On newer contracts, the guarantees are often more specific and the exclusions fewer. It is also possible to make it tailor-made, for example by including coverage of a profession or a risk sport.

Third reason: your situation changes over the years. Conversely, smoker, overweight person who has melted…: enough to get a contract that better suits your current profile and cheaper.

Changing insurance can be harmful if you have passed two-thirds of the loan. You are then older, subject to higher rates. If your current insurance is calculated on the outstanding capital, the cost of insurance decreases over time, the change will not necessarily be beneficial. Finally, if your health condition has developed unfavorably, you will encounter high rates or significant exclusions.

+ The full life: Use insurance comparators on the Internet:,,… They allow you to get rates and measure whether your insurance is too expensive. Look at the guarantees, loan insurance is a great security for your family.

The steps to be taken

Send a registered letter requesting contract substitution to your bank. The latter has ten working days to respond. Know that she can refuse if she justifies her position. This fairly short period set by law is to avoid the risk of double billing between old and new insurance. The bank cannot change your current loan offer or charge you for the insurance substitution. You can mandate a broker or the insurance company to take care of everything, free of charge.

+ The full life: If you are alone with your banker, it is difficult to get change without compensation. Hence the interest in being accompanied by turning to the qualified operators of the comparators.

Use cases and savings

A couple aged 47 and 48, employee and company manager, non-smokers, have a loan with an outstanding capital of €104,535 over 14.6 years. For 100% of the loan insured on each head, it cost them €78/month with Banque Populaire, against €34/month after substitution. That’s a gain of €45/month.

A couple aged 51 and 45, worker and employee, both with easy handling, smokers, took out two loans in the Caisse d’Epargne, with an outstanding capital of €53,016 for him over 19.5 years, and €70,037 over 9.5 years for her. For 50% insurance on each head for both loans: €92/month. After substitution, €28/month. That’s a gain of €64/month.

A 51-year-old man, manager, non-smoker, has a loan of €169,000 over 20 years. For 100% of the insured capital, it cost him €72/month in Postbanken compared to €41/month after substitution. That’s a gain of €31/month.

These examples are taken from data provided by Securimut ( from real processed cases.

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