🎄🎁 Day 6 in your advent calendar! 🎄🎅
At each box, advice from your broker to prepare your real estate project. Today let’s talk about loan insurance.
You are aware that a mortgage is automatically accompanied by insurance that covers the borrowed amount. The bank thus secures itself against a potential failure of the borrower in connection with an accident in life, and in addition it is above all protection for the borrower himself!
However, this protection must be the subject of your full attention: therefore you are sure to choose the right cover (and we are not talking here about the plaid that warms our December evenings).
This is why, in the same way that you carefully compare bank offers on your future mortgage loan, also remember to compare mortgage insurance policies on Loup!
How to compare contracts under the magnifying glass?
Choosing the best loan insurance is about comparing the contracts with each other on several levels.
Thus, as explained by Cécile Roquelaure, Study Director at Empruntis, “It is very important, when comparing, not to stop at the rate, the loan insurance is the borrower’s only protection. It is therefore essential to ensure that the guarantees correspond to the situation beyond the bank’s needs.”.
Here is an example: the bank asks you to cover your mortgage with insurance, including the following guarantees:
- Total and irreversible loss of autonomy (PTIA);
- total permanent disability (IPT);
- temporary total work reduction (ITT).
If your contract must at least cover these risks, you can still choose a contract with more coverage according to your needs, by choosing an additional guarantee such as With it, you are covered for a disability whose rate is between 33% and 66% (when IPT only covers from 66% disability). Or choose the Non Objectivable Diseases (MNO) option, also called the Dos/Psy option, to cover mental or discordant disorders.
Compare everything !
Your loan insurance agreement must best suit your situation : Are you a smoker? Are you in a risky profession? Or do you play a risky sport? In addition to an adjusted and competitive price, you must check that your contract fully adapts to your needs.
Other elements must also be compared. For example, an insurance that covers you in case of ITT if you can no longer practice “your profession” will be more comprehensive than an insurance whose clause is written with “any occupation”.
Likewise, monitor waiting and deduction periods. The waiting period (between the signing of your contract and the moment when the guarantees are active), for example, can extend up to 12 months depending on the contract. The excess period (which runs from notification of a claim until the insurance company assumes responsibility) is also variable.
Finally, if you have a mortgage in progress, know that it is not too late to compete with the offers of the loan insurance market to find a lower interest rate and customized terms. Lemoine’s Law allows you to compare at any time! First of all, you can ask your bank whether a renegotiation of your insurance is possible. You can also compare individual insurance offers.
Still have a question? One piece of advice can hide another 😉: do not hesitate to contact our brokersalways at your disposal to support your projects and answer your questions, whether they relate to your insurance, your borrowing capacity or your loan file.
🎄See you tomorrow at box 7 in your advent calendar!🎄
Find the best loan insurance