Take out a loan insurance

Take out loan insurance

Borrower’s insurance makes it possible to be protected in the event of difficulties of refunding. Today, all lenders demand that they take out loan insurance, even though it is legally required. The subscription of a real estate loan goes hand in hand with that of a loan insurance. It is a real security for the bank, for the borrower and his entourage.

We propose you then some information concerning the subscription of’a borrower’s insurance.

The advantages of the loan insurance

Taking out a loan to buy a home is a very common practice. Borrower’s insurance guarantees the repayment of the loan, the insurance replaces it in case of default of payment by the borrower if he/she is unable to pay the monthly instalments, the insurance replaces it. It is temporary since it ends as soon as the credit ends.

During all its duration, the borrower benefits from these guarantees, death, total loss of autonomy, permanent or partial invalidity, temporary incapacity of work, loss of employment. Loan insurance is a condition of loan acceptance for banks and other credit institutions.

An essential insurance

When you take out a real estate loan, the lending institution will always ask you to take out loan insurance to be protected in case of default on repayment. It is mandatory to obtain a credit. Since 2010, you can indeed choose an individual loan insurance outside your bank. Thanks to this insurance, banks protect themselves against various risks such as death, disability, unemployment. There are two types of loan insurance contracts.

Group insurance, which is offered by an insurance company generally affiliated with a bank. The delegation of insurance commonly called individual contract, this offer is proposed by companies specialized in loan insurance. The loan insurance is today a real security for the lending institution and for the borrower.

You can go to online comparators and let yourself be guided by the offers according to your objectives, your expectations or opt for a broker.