Insurance for a Loan
To get a home loan, we must ensure at least against the risks of death and disability. Protection against temporary disability and unemployment is often imposed by the lender. It is anyway highly recommended to ensure maximum protection of all these risks when embarks on a mortgage transaction.
BANK OF THE CONTRACT
The bank offers a systematic insurance for the loan it grants, it is most often a group insurance whose price is the same whatever the age of the borrower. More the borrower is under this formula is more interesting. It should be noted that beyond 57 years for most contracts, group insurance is no longer possible, and then you should purchase an individualized insurance.
DELEGATION OF INSURANCE
In a mortgage, should be compared with the praetor insurance competition: in particular cases where borrowers are under 45 years with hedging trades or substandard risks not accounted for by the insurance collective, or generates a significant additional cost.
Thus it is possible to purchase, from an entity other than the bank, an individual insurance delegated to the lender for the loan.
GUARANTEED DEATH
In case of death, all or part of the loan is repaid to the bank in proportion to the percentage provided by the borrower died.
When subscribing every borrower, there are several, determines its share to be 100% assured. And a couple will leave the risk with income of one or the other.
It is possible for 2 borrowers to cover each to 100%, however it must be remembered that the insurer will only reimburse 100% of the remaining capital in the event of simultaneous death of the borrowers, despite double coverage purchased.
DISABILITY
Three types of coverage:
°Absolute and Definitive Disability (IAD)
°Total and Irreversible Loss of Autonomy (TILA)
°Permanent and total disability (PTD)
A point common to the three hedges: there are supported when the insured is the result of illness or accident, in a physical or mental condition rendering it totally and permanently unable to engage in work or occupation likely to procure gain or profit.
Their services vary according to:
Disability rates of 33% to 66% and its involvement in the daily life of the insured.
The classification of disability determined by the category of Social Security.
Through illness or accident, the insured may exercise his professional activity temporarily in any way, even partially, and whatever the nature of his profession.
This warranty provides for the management of monthly payments, according to the share provided by the participant during the entire duration of disability, less the duration of relief provided for under the contract.
UNEMPLOYMENT
This warranty is effective for a specified period of job loss. The insured must be employed and under permanent contracts. A period of service with the employer may be required.
Depending on the contract, the insurance pays a share of the monthly peak or loss of resources related to unemployment.