Home loan insurance remains essential for the borrower. It even conditions the acceptance of the project. Its importance is linked to risk control. The individual has the right to take out group insurance or individual insurance. This freedom of choice is provided by the Lagarde law. Discover through the article why it is essential to take out insurance.
What are the risks of the home loan?
The purpose of home loan insurance is to compensate for repayment defaults. Despite careful analysis of the file, bankers cannot always predict accidents affecting the borrower in the future. And even if bankers give more confidence to employees who work in a sector with the minimum risk, they are not immune. It is also unthinkable to anticipate the borrower’s future situations, such as job loss.
Either way, these factors force the worker to stop paying his monthly installment. The insurance therefore has the advantage of financially covering the sums due during a given period. Depending on the contract taken out, the insurer will cover all or part of the remaining amounts. The insurance is combined with the guarantees during a mortgage. Guarantees are in the form of a surety or a mortgage. The two concepts should not be confused. Note that guarantees protect banks against repayment defaults.
How does the home loan work?
The subscription to a insurance-loan-real estate.com is not an obligation. It intervenes during death or the total and irreversible loss of autonomy. The latter is known as PTIA. There is still what is called invalidity and incapacity for work or ITT. The financial element includes the APR. A borrower is free to take out insurance according to his own criteria, even if the bank recommends the borrower to take out insurance with one of its partners. In terms of home loan insurance, it is therefore recommended to play the competition. To do this, there are online comparators or the service of a broker. The Hamon law allows insurance customers to abandon their contract in favor of another after 1 year.
What are the conditions of home loan insurance?
The contract must be equivalent to the guarantees otherwise the bank will not accept the loan. The insurance may request medical tests when the amount requested is significant. The necessary conditions vary according to the insurers. Sometimes filling out a health questionnaire is enough. Here, it is useful to be as frank as possible. Otherwise, the insurer can sue the client for concealment.
For information, disabled profiles are often excluded from the system. There are still borrowers affected by health concerns. Things are now beginning to change since the AERAS convention which governs aggravated risks. As a general rule, insurers are less inclined to grant the contract for people over the age of 70. Note that there is no legal age requirement. It is therefore advisable to take out the mortgage as soon as possible.
