What is Borrower Insurance ?
Loan insurance accompanies a loan. In case of a hard blow, this insurance protects you by taking charge of the credit. Depending on the situation and the contracts, the insurance covers the repayment of the monthly payments of your loan (unemployment or incapacity for work) or the repayment of the outstanding capital (death or disability).
GOOD TO KNOW :
Although not legally required, the purchase of insurance is a prerequisite for obtaining a loan.
The borrower insurance usually includes the following basic guarantees :
- total and irreversible loss of autonomy,
- permanent or total disability,
- temporary or total inability to work.
GOOD TO KNOW : CONTRACT LENGTH
The borrower insurance is limited to the duration of the credit. It begins, according to the bank, from the loan agreement or upon the release of funds and ends when the loan is fully repaid or within the limits detailed in the insurance contract (age limit for example).
How much does it cost ?
The insurance contribution usually depends on :
- guarantees and the insured portion chosen,
- the type of amortization of the loan,
- your age and the length of your loan,
- your socio-professional category,
- your state of health,
- your possible risky practices (sport, profession),
- your smoking status (smoker or non-smoker).
It is most often expressed as a percentage of the sum borrowed or as a percentage of the outstanding capital.
When should you be interested ?
Our advice: do not wait to get your credit, it is better to anticipate.
Begin to learn about borrower insurance right from the start of your borrowing research.