This information, given orally by customer advisors and relayed on social networks, is completely false. Why ? Because if the guarantees offered by the new contract are not equivalent to those of the old group insurance contract, banks refuse
automatically the new borrower insurance contract. Guess who benefits from this false information! Is not that a way of you
to convince not to change borrower insurance?
Do not be fooled. Know that since 2010, you can subscribe to an external mortgage insurance at the lending financial institution. In addition, with the, you can change insurer and thus make significant savings on your contract.
What equivalence of guarantees
Banks are obligated to provide you with the list of criteria required of borrowers. This list contains 18 criteria, to which 4 additional criteria may be added in the event of this measure. The purpose of this measure is to increase the transparency of banks with regard to guarantees. In addition, in the event that the bank refuses you the change of contract, it will have to justify itself in a period of 10 days by invoking necessarily these criteria.
Let’s look at the 18 criteria that are detailed in the ISP:
The five main guarantees (criteria 1, 2, 3, 4 and 5)
Of the 18 criteria of the CCSF, 5 relate to your personal situation in order to assess your coverage over the total duration of the loan for all of the following guarantees:
- The death guarantee Attention, according to the contracts, there is a limit of age (generally between 65 and 80 years).
- The PTIA guarantee corresponds to a total, absolute and final disability. She may also have an age limitation.
- The guarantee Total Permanent Disability (IPT)
- The Permanent Partial Disability (IPP) guarantee distinguishes two categories of disability:
- Temporary Disability Work Guarantee (ITT)
- The amateur sports guarantee
The other 13 criteria of the CSSF refer to the death, disability, invalidity and disability coverages on the information note of the insurance contract.
The indemnity or lump sum nature of the disability / invalidity guarantee
(criteria 6 and 7)
The indemnity or lump sum nature of each contract is important to take into account when comparing the different offers of borrower insurance:
The indemnity insurance , which is often adopted by the banks’ partner insurers, provides coverage, in the event of a claim, which is proportional to the decline in your income and your social benefits received, excluding insurance. The lower your income, and the lower the repayment of your loan will be important.
The fixed insurance covers you up to the percentage defined in the contract at the time of subscription. This type of contract is more advantageous because it covers you equally regardless of the variations in your income. Most of the contracts of independent insurance companies are of the standard type.
The franchise period (criterion 8)
The deductible period corresponds to the period during which your insurer does not support you. It can vary a lot depending on the contract:
– some group insurances have (on the order of 90 days) often dedicated to certain unsecured jobs, such as self-employment activities,
– others have franchise periods up to
Determination of disability / disability (criteria 9 and 10)
This warranty defines. This is an essential distinction: “all occupation” cover only comes into play when there is an impediment to doing any work. If for example you were a baker and you become allergic to flour, nothing prevents you from becoming a hairdresser, or if you lose your sense of smell while you were “Nose” at a perfumer, nothing prevents you from working in the ranking. In reality, we understand that this criterion allows to exclude from coverage many situations that yet place policyholders in great difficulty.
The contracts proposed by Shrek systematically provide for the assumption of the incapacity to exercise His Profession. In this case, changing insurance not only divides the price by 2 but also significantly improve its guarantees .
Inability to work (Criterion 11)
Your support in incapacity of work even in case of inactivity the day of the disaster varies according to the offers:
– some contracts cover you whatever your situation at the time of the loss,
– others reduce the guarantee to periods of professional activity only,
– others finally cover you up to 50% in case of inactivity on the day of the disaster. It is important to guard against this situation where
the return to activity and repayment capacity of the loan are threatened.
The coverage of “non-objectifiable” vertebral and psychological dorso pathologies (criteria 12, 13, 14 and 15)
Most often found in “non-objectifiable” pathologies:
– Back pathologies
– Psychological pathologies
These pathologies can be excluded. When supported, conditions can be defined according to 3 values
in the Standardized Information Sheet: without conditions, with conditions of hospitalization (or intervention for the vertebral dorso) of
less than 10 days, or 10 days or more.
In other words, some contracts cover these pathologies without reserve, others condition the management of these pathologies to conditions of hospitalization or surgery.
But be careful, it should be vigilant, because some banking contracts exclude any form of support for back or psychological pathologies.
Not having any coverage of so-called “non-objectifiable” diseases can be a good reason to change your insurance policy!
In Shrek, these so-called “non-objectifiable” pathologies are always covered at least with conditions. In this case too, changing insurance can pay 2 times less and improve its level of guarantee.
Coverage of therapeutic half-time (criterion 16)
This warranty covers you if you are compensated for (ITT) more than 90 days. This guarantee then allows you to partially and temporarily extend your compensation when you return to work in half-time therapy. When it is compensatory, this guarantee is in fact virtually non-existent given the employer and basic plan coverage.
Coverage of partial disabilities (criterion 17)
This coverage generally covers between 33% and 66% of disability, based on an assessment made by a medical officer of the Social Security. You then receive a partial allowance from the social protection schemes. This coverage is most often triggered in the absence of any professional activity, it is almost never implemented.
Maintaining Safeguards Around the World (Criterion 18)
Only a very small percentage of borrowers are affected by this criterion. No offer makes distinctions in the conditions of compensation between the different reasons for travel for personal, professional or humanitarian reasons.
The job loss guarantee
Still optional, this guarantee provides for the continuation of the repayment of the loan by the insurance in case of unemployment, only in the case where it is compensated by Pôle Emploi. The application of this guarantee depends on many parameters such as age, waiting period or seniority within the company. Attention, the self-employed do not benefit generally from this guarantee. Lastly, the loss of employment guarantee ceases to protect the insured person on average from the age of 55.
By changing borrower insurance, you are assured not only of benefiting from the equivalence of collateral that the banks
control carefully, but it is also an opportunity to improve the level of your guarantees.
Our advice: take a look at your ISP (or your contract before 2015), simply reading the current guarantees can justify a change of borrower insurance . Competition and digital today can find better and much cheaper. These contracts are not “low cost” but “low price”: