Mortgage loan insurance can represent up to more than 30% of the cost of a mortgage. With the health crisis and the rise in inflation, particularly in energy prices, it may be worth reducing the cost of this insurance. Several laws have been enacted to facilitate the change of insurance.
Change mortgage insurance with insurance delegation
Changing mortgage insurance is a way to optimize expenses by lowering the price. To pay less for loan insurance, you should compare the mortgage loan insurance offers on the market. Depending on the borrower profile (young and without health risk in particular), personalized individual insurance may ultimately be more advantageous than group insurance. Indeed, individual insurance adjusts its contract to the borrower. With a tailor-made price, external insurance may prove to be less costly, with equal guarantees.
If the borrower insurance contract is already taken out with a bank, it is possible to delegate mortgage loan insurance. Subject to equivalence of guarantees, you can benefit from a contract at a more advantageous mortgage loan insurance rate.
The criteria for changing loan insurance
Several indicators must be considered before choosing to change loan insurance:
- The guarantees must be at least equivalent to the group contract;
- Disclaimers of warranties;
- The borrower insurance rate determines the price of the insurance;
- Deductible and waiting periods: the deductible period applies from the declaration of a claim until it is covered and the waiting period corresponds to the period between the signing of the contract and the activation of the guarantees;
- The system: indemnity or lump sum
- The drafting of certain clauses: such as reimbursement in the event of temporary incapacity for work (ITT);
- Insurance on initial capital or remaining due.
If the group insurance contracted with a bank is difficult to negotiate, it is however possible to compare all the solutions on the market to get the best one.
Lemoine law of 2021: cancel your loan insurance at any time
The infra-annual termination of borrower insurance should soon be made possible with the Lemoine law. The bill has indeed been adopted before the National Assembly and should soon be promulgated. Thus, it should be allowed to change loan insurance contracts freely before the end of the five-year term. In addition to the possibility for any borrower to change his loan insurance at any time, the Lemoine bill should also facilitate access to mortgage for borrowers who have been ill.
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