In the financial sector, specifically in the financial institutions, guarantees are often the key to the Granting of a loan. This is particularly the case Release of funds in the purchase of a property when banks participating in the financing. This is commonly referred to as a home loan. And in this case, the lending institution most of the time, requires the borrower to subscribe to a borrower insurance, even if no law requires it. This is known as mortgage loan insurance. However, it is possible that this type of Credit Insurance is also requested for a consumer credit if the amount requested is relatively large. But this is rarely the case for a car loan since the maximum amount you can borrow is 60,000 $. However, depending on his / her personal situation, the bank may request the purchase of a macif borrower guarantee before accepting its application for financing.
Borrower insurance in brief
It should be noted that when you are looking to get a mortgage from a bank, it will automatically offer its borrower insurance. We talk about Group Insurance insofar as this offer is Standardized and is intended for all the customers of the credit institution. In the event that you are first-time buyers, seniors or if you present an Aggravated health risk, this collective agreement does not benefit you.
It is therefore better to turn to the Insurance Delegation which allows you to find Insurance Guarantees more relevant to your case. By using Borrower Insurance Comparator, you can collect multiple quotes online and save money by choosing the lowest cost offer that gives you the best coverage.
How to choose your borrower insurance?
Before examining the selection criteria for borrower insurance, it is first necessary to know that there are two kinds of guarantees for this insurance. It’s about :
- Compulsory guarantees, namely the death guarantee and the disability insurance. For the latter, there are also 4 levels of guarantees between which you can choose.
- Optional benefits like Job Loss Insurance
Here are the criteria to consider when choosing your credit insurance.
- The method of calculating contributions
You must find out how your Insurance Premium is calculated. Indeed, it can be based on the initial capital or the one remaining due, which is a big difference.
- Membership fees
It is important to consider these charges which represent additional charges for you.
- Warranty Exclusions, Waiting Periods and Franchise Periods
It is important to note that each borrower insurance contract is specific and you need to read the terms. This is the case of the franchise periods, the period during which the insurance company will not compensate the Subscriber even if the element that triggers a guarantee occurs. The same applies to waiting periods, which is a delay from the signing of the contract where the guarantee can not be activated. Finally, the exclusions are the circumstances that are not covered by the guarantees of the borrower insurance.
- The details of the guarantees
You must be concerned about the guarantees covered by your credit insurance. In this context, it is advisable to ask if they are well adapted to your personal situation.
- The coverage rate or quota
In the case where you buy this insurance to two, the Quotity is the share of support for each insured. The ideal is that everyone makes sure 100%.