Question from Bernard: “I would like to be informed about borrower insurance. Do they concern all the loans and how to go about it?”
The borrower insurance covers the bank or the credit company in the event of death, disability or temporary or permanent incapacity to work from the borrower. You can take it out for any type of credit, whether real estate, car or consumption. If it is not compulsory, in reality, it will be essential to you to obtain a credit agreement.
How to do it
If you are interested in borrower insurance, you may be tempted to subscribe to it in the same establishment as you have obtained your loan. Know all the same that the latter has no right to impose it to you. You are free to make competition play and take the time to study the competing offers offered by banks, credit institutions or even specialized insurers. You will get more attractive prices. And given the duration of real estate loans which, today, sometimes exceeds 25 years, you make a significant commitment, both in terms of cost and coverage. So you might as well try to get the best price possible.
To make your choice, are already interested in the insurance rate offered in the various offers by differentiating it from the credit rate of credit. Apart from the encrypted aspect, do not forget to look at other criteria. For example, pay particular attention to the proposed deductible. You can most often choose its duration (30, 60 or 90 days), which directly impacts the cost of insurance. The shorter the franchise, the higher the cost of insurance.
Also inquire about the coverage of a work stoppage and the exclusion cases provided for in the contracts. Psychic diseases, such as depression, are quite often excluded from guarantees when they can reach everyone. Finally, for certain insurances, the amount to be settled may either correspond to a percentage on the capital of the credit remaining due month after month, or on the overall amount granted. This last case will often prove to be less interesting. So read all the clauses of the contract before committing and the terms of settlement.