Loan insurance needs vary from borrower to borrower. Very often, this whole implementation seems complex. The terms used have a lot to do with it: guarantees, quotas, PTIA, ITT, ITP, etc.
Don’t let an obscure vocabulary, sometimes difficult to understand, distract you from the possibility of real savings on your credit!
Let’s discover the world of loan insurance together.
Loan insurance guarantees
There are compulsory guarantees, as the death guarantee, but also additional guarantees that you can choose to take out in addition to the unemployment guarantee.
As its name suggests, this guarantee intervenes in the event of the death of the insured borrower. O how important for a mortgage which constitutes a very high amount, it avoids situations which could become catastrophic if the reimbursement was deported to the heirs. It must, therefore, be set up by insurance companies.
The Total and Irreversible Loss of Autonomy Guarantee (PTIA)
It intervenes when the insured has suffered a trauma making it compulsory to have recourse to a third person to perform ordinary acts of life. There is often an age limit to this guarantee, 65 years for example.
The Temporary Work Interruption / Permanent Work Interruption (ITT / IPT) guarantee
It is activated in the event of incapacity or invalidity preventing the insured from practicing his professional activity or any other activity ensuring his income.
A deductible is taken into account. In general, it is 90 days, this means that the guarantee will not take effect until 90 days after the start of the work stoppage. This guarantee is deactivated when the insured person retires, or from the age of 65 (depending on the organization).
The Job Loss Guarantee
It is not offered by all organizations and is highly supervised (type of employment contract, unemployment insurance scheme, age, etc.). If you wish to benefit from it, ask one of our advisers.
Good to know: There are certain special cases. As part of a rental investment, be aware that ITT and IPT guarantees may not be required, the rents received by the insured are deemed sufficient to guarantee the end of the loan repayment.
Remember to also check:
The waiting period
Please note that when you take out your contract, you will not be able to immediately receive compensation. It will be necessary to wait for the end of the waiting period for the guarantees to be triggered.
The compensation limit
In the case of unemployment insurance, for example, the organization will take charge of your reimbursements in the event of job loss for maximum duration and not over the entire period of unemployment.
This is often located around 4 years of compensation over the entire duration of the credit, including 1 consecutive year maximum.
Exclusions and limitations of guarantees
As with any insurance contract, loan insurance guarantees have exclusions. In other words, risk guarantees are subject to conditions.
Thus, the guarantees do not generally cover the consequences of climatic disaster or civil war, for example. To this are added limitations such as the practice of a risky sport for example. Remember to read your contract carefully or ask us if you have any doubts.
LOAN insurance rates
By definition, the insurance quota represents the part of the capital which will be reimbursed by your insurer.
The quotas are to be defined by “head”, that is to say by the borrower. When we say that you are 100% insured, it means that you are guaranteed a full return of your capital in the event of a problem. If you are the only one to borrow, you will, of course, have 100% of quotas.
If you have a co-borrower, you can then choose the combination you prefer: 25% on one, 75% on the other, or 50-50 etc. But you can also place your quotas at 100% on each borrower.
However, be aware that this will significantly increase the cost of insurance. Many insurance companies charge “couples” rates. Also note that at least, the quotas on the death guarantees must be placed at 50/50 in the case of two borrowers.
Membership fees and application fees
Loan insurance contributions represent the amount you will pay and which will be added to the amount of your credit repayment. They depend on the guarantees of their quotas.
They are often monthly, but some organizations offer you a split: by month, by quarter, by semester, or even annually. More rare but possible, it is also possible to pay the amount of your insurance in one go.
Who says setting up a file, also says “costs”:
- Application fees: often up to $ 20, depending on the organization.
- Brokerage fees : 0 $! Because for Crédit Immobilier Direct, good advice is priceless.
Application fees and repayment terms will depend on the organization with which you wish to establish your loan insurance. Your advisor will guide you according to your research.
The establishment of the borrower insurance delegation
We make your life easier by offering you a completely free online form. You can fill it up quietly from home, then send it to us without any obligation.
Some information is enough to complete the different fields of this form. Everything you give us will be kept strictly confidential.
As soon as you have finished sending your request, at the end of the last entry step, it will be immediately transmitted to a specialist. He will contact you within 24 hours and will be your privileged contact throughout the search for your loan insurance.
Being a “ 100% local web telecourtier ” is your guarantee of calling on a specialist from a distance, while being able to request it and stay informed at each stage of your request. You can contact us at any time whether by email, phone or even by mail. If your specialist is not available when you need him, one of his colleagues will take over to satisfy you at best.
Your advisor will study your request and guide you towards the best borrower insurance formula. Upon your agreement, he will put together your file with our partner insurers and accompany you until the signing of the best loan insurance offer.
Expect to have to provide some supporting documents for your personal situation to finalize the creation of your borrower insurance contract. In general, the application for membership is sufficient with most insurers.
She understands :
- The health questionnaires that you must return signed to the organization you have selected.
- A copy of your national identity card
- Your bank statement to collect your payments.