Good news for borrowers who see in the recent opinion published by the Advisory Committee on the Financial Sector (CSSF) a way to overcome the obstacle of equivalence of guarantees. Pending the effective application of these provisions, they can still compare their current borrower insurance with the offer of mortgage loan insurance or that of another insurance broker.
From the guarantees taken into account
Unless you use the various loan insurance comparators available on the Internet directly, it is entirely possible to compare your current borrower insurance with other offers such as macif home loan insurance. In general, certain guarantees remain unchanged from one insurance to another.
These include the death guarantee and the total and irreversible loss of autonomy guarantee (PTIA). It is at the level of guarantees on incapacity for work and on invalidity that things get complicated. The differences between insurance contracts mostly relate to 4 essential points.
The first criterion is the method of reimbursement, namely compensation or lump sum. The first hypothesis is more interesting for the borrower, since the repayment is done almost automatically. With regard to the second hypothesis, compensation does not become effective until your income actually decreases.
Other points to watch for loan insurance
To compare macif home loan insurance with that of your bank, you should also look at the deductible. This is the period between the start of your work stoppage and the insurance compensation. Generally, it is 90 days, but can extend up to 180 days in some contracts. In addition, you must be particularly vigilant about the terms used for the incapacity for work guarantee. Indeed, for some contracts, incapacity for work results in the borrower’s inability to exercise his profession while for others, it means the inability to exercise any profession.
The difference is significant, because if you are a carpenter and you have broken your hand, the insurance may very well refuse to activate the incapacity for work cover in the second case since, for it, you can perfectly become remote adviser in a call center or car salesman. Finally, to avoid disappointment, carefully study the exclusions provided for in each contract as well as the level of support in the event of disability.
This page specializes in loan insurance for people who make an easy and quick loan to acquire a property.
When taking out an easy loan without proof, taking out insurance is always recommended, although in most cases it is optional. However, taking out insurance has several advantages, including the preservation of the borrower’s family in the event that, for one reason or another, he can no longer honor his commitments.