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How To Choose A Mortgage Insurance?


To reach the property, you need to take out a mortgage from a bank. This will require you to take out credit insurance to guard against any risk of non-payment. Let's see how to choose the best guarantees at the right price for your home loan.

Why a loan insurance?

First, loan insurance ensures the bank's mortgage repayment in case you are unable to pay your monthly installments. Moreover, this loan insurance also protects you and your family. The credit insurance covers the mortgage repayment in case of: Job Loss, work disability / invalidity, death.

Is loan insurance mandatory?

The law does not require you subscribe to a mortgage insurance. Nonetheless, this insurance policy is an essential guarantee for lenders: This insurance protects the mortgage in case of repayment failure. That is why they will demand you this loan insurance for any mortgage application.

Do I have to take the insurance offered by the borrower's credit agency?

No. Since the passing of the law Lagarde in 2010, you no longer have to incur the loan insurance offered by the bank that finances your property purchase. You no longer have the obligation to take joint credit and credit insurance.

This allows you to create competition and benefit from more advantageous loan insurance premiums. However, the contract must offer the same warranty terms as the lender to be accepted.

Loan insurance: insurance group or insurance delegation?

There are 2 types of loan insurance contracts. On one hand, "group insurance" is proposed by the borrower the lender insurance. It offers all its customers a range at a single price negotiated with an insurance partner.

Second, the "delegation of insurance" is an external offer to the credit institution. The borrower receives a customized proposal, calculated according to its maturity profile. He must present this loan insurance offer from the bank for acceptance.

Stay very careful regarding the exclusions and limitations of warranties. Beyond the proposed rate, watch for offers conditions Support for monthly payments in case of default.

How do you calculate the premium loan insurance?

The bank is based on various criteria to determine the amount of your insurance premium. It takes into account the amount, the duration and the nature of your home loan . To this is added other criteria related to your general health. Therefore you will have to complete a particular health questionnaire.

Do not hesitate to consult our online loan insurance comparator to obtain an insurance policy for your situation, your needs and your expectations in terms of guarantees.

Item Reviewed: How To Choose A Mortgage Insurance? Description: Rating: 5 Reviewed By: Rahul Singh
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