Loan insurance is often imposed by your banker. This is not a mandatory contract but in practice, few banks will give you a loan without associated insurance.
You are theoretically free to choose your loan insurance. Since 2010, the Lagarde law, since 2015, The Hamon law and since 2017, La Loi Sapin 2 or Bourquin Amendment help you to play the competition.
Borrower insurance, mandatory or not?
Borrower insurance, in theory, is not mandatory. Yet we regularly find that few banks grant you a mortgage if you do not subscribe to a borrower insurance guaranteeing the death, total and irreversible loss of autonomy and loss of income in case of work stoppage.
The Bank is the beneficiary of the loan insurance
The principle of a borrower’s insurance is that the bank that grants the financing is the beneficiary of the repayment of the loan in the event of incapacity of the borrower to repay it (monthly payments refunded to the borrower in case of sickness or invalidity and remaining capital of the reimbursed to the bank in the event of death).
Loan insurance, essential protection
This loan insurance also protects you directly. Indeed, the debt will not be borne by your family and heirs in the event of death. In case of loss of income due to a disability or inability to work, this insurance borrower will allow you to keep your property.
It is therefore essential to study and choose this borrower insurance, according to your profile and your needs.
The borrower insurance is a mandatory condition to obtain a mortgage, it ensures the lender to be reimbursed in case of the inability of the borrower to pay his credit and allows not to transmit the debt to the heirs of the lender. ‘borrower.