1 – The “group” contract of the bank
You can choose to subscribe to the contract offered by the lender, the “group” contract.
It is a group insurance contract that each bank has negotiated with an insurer on behalf of its borrowing clients.
The main disadvantage of group contracts is that collateral and rates are the same for all borrowers underwriting a contract. Guarantees are not adapted exactly to the need of the insured does not take into account its personal characteristics, and in most cases the tariff will be much higher because it is calculated on a pooling of risks (age, health problem, extreme sports, smoking …)
2 – The individual contract leaving free choice
You can choose to subscribe to a borrower insurance policy of your choice and delegate it to the bank that finances your property. In this case we speak of insurance delegation and free choice of borrower insurance.
It is Christine Lagarde who allowed the introduction of these contracts by a law that was promulgated in September 2010.
This law clearly states that the lending institution is no longer entitled to impose its group contract, since the guarantees offered in the delegation agreement chosen by the borrower are at least equivalent to those offered by the group contract.
Moreover this law stipulates that the banking organization is not entitled to apply a higher credit rate if you decide not to subscribe to their group contract.
If the bank refuses to accept your delegation of insurance, then it will have to justify it and motivate it in writing so that you can look for a new contract whose terms will meet their requirements.
For information, this law came to support the law MURCEF which already prohibited the forced sale of related products but which was not sufficient and little applied in reality: the main text of this law mentions: “Is prohibited the sale or offer of sale bundled products or services, except where the goods or services included in the bundle can not be bought individually, or when they are inseparable “.
Tell quickly that you opt for a delegation
In order to put the odds on your side for the delegation to be accepted, we advise you to address the subject from your first meeting with your banker by indicating your willingness to make a delegation of insurance.
He will then be able to give you the terms and conditions of sale of his group contract and this will allow you to launch your research and align with their terms of guarantees.
Delegation of insurance borrower: make the right choice
The borrower insurance delegation can save you a lot of money. However, care must be taken to choose the contract based on your personal need and not just want to favor the lowest rate, something you could regret greatly in case of need for compensation.
The ITT / IPT / IPP guarantees are not identical on all loan insurance contracts, pay attention, among other things, to waiting periods and deductible periods, especially in the case where you are a non-salaried worker and you do not benefit from the pension coverage as a good majority of employees.
Also pay special attention to exclusions and especially if you practice a risky sport: you should not be guaranteed in case of accident during the practice of your favorite sport!
Determine the quotients for each borrower, which will help protect you and your family effectively.
Call an insurance broker
It is very appropriate to use an insurance broker who can make the comparison for you of the best contracts on the market and choose the one best suited to your profile and your needs. We are here to compare for you and guide you in the best choice.
Indeed, with regard to your profession, the sport you practice, whether you are TNS or an employee, you will be able to select the appropriate guarantees and options and not subscribe to the guarantees common to all the profiles of borrowers of a group contract. Some guarantee conditions of the group contract may be too weak in some cases and will include many exclusions.
Among other things, the notion of waiting period in ITT can be a determining factor for a TNS (which is not lucky for the majority of employees who receives 100% of his salary in case of sickness during the first 3 months, the latter being totally supported by his employer).
Save money with a delegation
The insurance delegation can save up to 60% on insurance costs, especially if you are young, with no health concerns and no smoking. Rates are delegated according to criteria related to each borrower: it is thus made to measure by age, sex, being a smoker or not, the profession and do not bear the risks associated with others borrowers of a group contract.
It is also tailored to the amount and duration of your loan. Thus group contracts are in most cases based on the initial capital borrowed while the delegation contracts are for the most part indexed to the remaining capital of the.
Do well in advance to make a delegation
It is preferable to draw up your loan insurance file at the same time as your mortgage loan file because the medical formalities are sometimes important and long in case the borrowers present health risks. In this case the medical services of the insurers will almost always require additional medical examinations and reports.
Thus it is not essential to have the amount to finance and the final rate to start the process of research insurance loan. We advise you to make comparative insurance quotes based on a rate and an amount to fund in principle in order to launch the file. You will give confirmation of the exact rate, amount to be financed and effective date just before the membership certificate is issued.
In some cases delegation may be essential
Indeed, if you present risks too high, a large part of the group contracts will refuse to cover you and your banker will invite you to look for a borrower insurance on your side. This may be the case especially for senior citizens (because group contracts do not cover beyond a certain age) and for borrowers practicing risky professions or sports.