Since September 2010, Finance law allows borrowers to subscribe their disability death insurance with the insurance company of their choice. A very economical alternative, especially for those under 50 years old.
According to a survey conducted by the Good Finance, 37% of respondents are unaware of their right to choose their credit insurance outside their bank, even though the Finance law expressly provides for it. However, by choosing a delegation of insurance at Good Lender, the client can save up to 60% on the total cost of his loan insurance, and benefit from a high-performance insurance solution adapted to his profile.
In case of refusal of acceptance of external insurance, the bank must give written reasons for its decision.
Why is Individual Insurance cheaper?
Instead of pooling the risks on all the borrowers, the insurance companies establish an individualized tariff according to the profile of the insured. The principle is simple: the older you are, the more expensive it is (over 50 years, the group insurance of the bank often becomes more competitive) and the younger you are, the less expensive it is. For a loan of 200,000 euros, a couple in their thirties save more than 9,000 euros on the total cost of insurance.
More advantageous than those of the banks
Beautiful economy, especially as on the side of guarantees, they can be more advantageous than those of the banks. For example, some group insurances reserve the right to increase the premium of the insured during the contract. In the event of a work stoppage, some companies simply pay the supplement linked to the loss of salary caused, after social security compensation, instead of paying the full monthly payment as is the case with a delegation. insurance.
A New Law to guarantee the effectiveness of the Finance Law
The Finance Law, which deals with consumer protection, particularly with regard to borrower insurance, is currently being discussed in Parliament. Taking into account the fact that banks do not always play the game of competition, this text provides that a mortgage insurance contract subscribed outside the lending bank can no longer give rise to a contract acceptance fee external insurance.
This measure should compel banks to better respect the law.