Borrower insurance is an essential guarantee to be able to take out a mortgage. It protects the lender and the borrower in the event of default by the latter by covering part or all of the monthly payments in the event of incapacity, disability, or even death. Just like the bank to which you make your loan request, the insurance organization is not obliged to accede to your request. However, his refusal must be motivated. It is therefore necessary to prepare your application for loan insurance well to put the odds on your side, whether alone or accompanied by his real estate broker.
The health questionnaire
Obtaining borrower insurance is subject to a health questionnaire, which also makes it possible to define the insurance rate and the guarantees that may or may not be included in the coverage.
why it matters
The health questionnaire allows the insurer to assess the risk it takes to insure your loan. By learning about your overall health, the insurer can then define the level of risk in your profile, depending on your age, your professional activity, your medical history and your current state of health. It assesses what risks the borrower may incur during the execution of the loan contract and defines the amount of the insurance premium accordingly.
The information to be provided
Most forms sent by insurers require you to provide the following information:
- The identity (surname, first name, date of birth, etc.) of the borrower(s)
- The characteristics of the loan to be insured
- The medical history of the borrower(s)
- Their current state of health
- Sports activities practiced (especially extreme spots)
- Information about lifestyle (smoking, etc.)
To confirm certain pathologies or rule out certain risks, the insurer may require a medical examination. It is from this questionnaire that the insurance company draws up the insurance contract.
Why you shouldn’t lie
It may be tempting to hide illnesses or pathologies from the insurer in order to reduce the cost of his insurance. However, this is strongly discouraged. Indeed, omission or misrepresentation may result in the nullity of the contract, which means that you would not be covered in the event of a claim related to the condition that was hidden. I’home loan insurance only covers the risks mentioned in the contract!
In some cases, the insurer may even decide to terminate your insurance contract, which would put your co-borrower and/or your heirs at great risk in the event of an accident or death.
The conditions of the right to be forgotten
The AERAS Agreement (Insuring and Borrowing with an Aggravated Health Risk) aims to facilitate access to insurance for people with a major health problem. It also lists a list of illnesses and pathologies that may be covered by the right to be forgotten, and therefore, which cannot be the subject of an additional premium or exclusion of cover by the insurance. It is then possible for people with these diseases to borrow under the same conditions as an ordinary borrower.
The other documents to be provided to ensure your loan
In addition to the medical questionnaire, you must provide a number of additional documents and information to the insurance organization that will insure your loan:
- Reports of examinations and analyses, when requested following the medical questionnaire
- A copy of a valid identity document, front and back (passport or CNI).
- A bank account statement (RIB), including a BIC and an IBAN
- The contact details of the lending bank (when the insurance is taken out with a third-party organization)
- The distribution of the quota for each co-borrower (if you are borrowing together).
- The guarantees required by the bank