The borrower insurance is not obligatory . The bank may, however, require you to take out loan insurance to cover the risks of death , incapacity for work , disability , loss of employment, etc. The borrower is not obliged to choose the insurance offered and may benefit from the agreement AERAS , Insurance and Borrowing with an Enhanced Health Risk . Should I take out a borrower insurance? What does the borrower insurance cover? How to terminate your borrower insurance? Which borrower insurance to choose? How to pass the medical examination insurance borrower? All about borrower insurance.
What does the borrower insurance cover?
When you apply for real estate credit to the bank , it must ensure that not only will you have the financial capacity to repay all the monthly payments of the mortgage but also ensure that you can repay them in case of major risks of health or financial with the borrower insurance which guarantees these risks.
In order for the bank to ensure that the mortgage will be repaid , the borrower insurance covers the following risks :
- Death , up to 65 or 70 years depending on the contract
- Incapacity for work , partial or total temporary inability to exercise his professional activity
- Disability , permanent partial or total reduction of his abilities
- The Total and Irreversible Loss of Autonomy ( PTIA ), the most serious disability
- The unemployment guarantee or loss of employment guarantee, optional guarantee
The borrower insurance benefits the bank but also your heirs so that they do not have to repay your mortgage in case of serious health or financial problem of the borrower.
What information should the bank provide to the borrower?
The borrower must be informed by the bank of the cost of insurance , the effective annual rate and the amount of the insurance premium .
The borrower is not obliged to choose the insurance offered by the bank , this is called the insurance delegation . The bank must inform you of this right and join you , during the credit simulation, a standardized information sheet which consists of a notice listing the risks guaranteed as well as the conditions for bringing the insurance into play . Once the clauses of the contract of the information notice have been accepted by the borrower , no modifications of the insurer can intervene and oppose the insured .
How to terminate your borrower insurance?
You find your insurance borrower too expensive and you want to choose a better insurance borrower ? This is possible with the agreement of the lending bank . So how to terminate your insurance borrower? You must enter into a new borrower insurance policy to terminate the old borrower insurance . The bank may indeed require mortgage insurance . To know how to cancel your borrower insurance after agreement of your bank and to take out a better insurance borrower , it suffices to send a registered mail with acknowledgment of receipt of cancellation :
- 15 days before the end of the first 12 months of the signing of the contract
- 2 months before the anniversary date of subscription after the 1st year
Which borrower insurance to choose?
A borrower can choose the best borrower insurance in full freedom provided that the insurance contract meets the same level of collateral as that offered by the bank . For this, the bank gives you:
- A list of the documents needed to examine the file
- The standardized information sheet to compare borrower insurance offers
- A personalized form with the list of criteria used to approve the borrower insurance guarantee equivalence (11 maximum criteria for death risks, PTIA, disability and / or disability and 4 criteria for loss of employment)
To choose the best insurance borrower , it is better to choose a insurance borrower of group said collective contract . These contracts do not take into account the age of the borrower, an important criterion in the evaluation of the borrower insurance rate .
You can also take out a dedicated borrower insurance policy . More flexible on the criteria , the dedicated borrower insurance is an ideal senior contract with a death guarantee up to 90 years and much less prohibitive than the collective borrower insurance of the bank . The easiest way to have the best insurance borrower remains to go through an insurance broker after choosing his credit on the comparative mortgage credit . To benefit from the best monthly contribution and thus obtain the cheapest loan insurance , you will have to display the best possible health status during the borrower insurance medical examination .
Tips for Passing the Borrower Insurance Medical Exam
The medical insurance borrower takes place in two stages : the medical questionnaire and the complementary medical examination . The borrower insurance medical examination includes a blood and urine test and an electrocardiogram . The results of the borrower insurance medical examination are valid for 6 months . The medical insurance borrower insurance allows the bank to send you a borrower insurance proposal for your mortgage including:
- Covered guarantees
- The conditions to be fulfilled to trigger the guarantees
- Warranty exclusions
- The amount of the monthly subscription and the duration of the loan
- The cost of the borrower insurance with a possible premium according to the state of health of the borrower
- The waiting period, the period between the opening of a right and the payment of the corresponding benefits
The Borrower Insurance Medical Questionnaire must be completed in good faith . Any misrepresentation by the insured or a deliberately hidden state of health will result in the cancellation of the borrower insurance contract . The borrower insurance will be deprived of its guarantees and it will therefore be impossible to play the insurance in case of death of the insured .
To pass the medical examination of borrower insurance and thus pay less insurance borrower , you must display the best possible state of health by following these tips:
- Do not eat sweet, fatty and salty foods
- Drink only water ! No alcohol, soda and fruit juice
- Avoid smoky atmosphere for 2 days if you stated that you are a non-smoker
- Wait one to two weeks before taking the exam in case of benign viral pathology (angina, cold, …)
- Do not do intense physical activity within 3 days before the medical examination
To have a good state of health, it is well eaten . Beware of processed foods without nutritional quality and often very high in added sugar . A good eating habit is zero tolerance on added sugar . Prefer to cook yourself , we are never better served than by ourselves! You will be at least sure of the nutritional composition of your meals and your blood and urine test will have normal levels of blood glucose , cholesterol and triglycerides . Remember that overweight or underweight is enough to cause a premium insurance borrower … It is therefore important to get back in shape before passing the medical insurance borrower .
What to do in case of refusal of application insurance borrower?
A borrower can receive a refusal of his application for credit insurance . The insurance considers that the borrower represents an aggravated risk . In case of refusal of application insurance borrower , you can benefit from the agreement AERAS , Insure and Borrow with a Health Risk Enhanced . To benefit from the AERAS convention , you must:
- Be in the black
- To be less than 70 years old at the end of the mortgage repayment
- Borrow at most 320,000 €
Finally, the AERAS convention stipulates that you have a right to be forgotten and do not have to report cancer if you have been cured at least 10 years ago , 5 years for a cancer diagnosed before the age of 18 years old . The insurer can not apply a surcharge or exclusion of guarantee for this disease.