The home loan is accompanied by other mandatory expenses such as notary fees, application fees and borrower insurance. The latter can represent up to a third of the total cost of the loan.
Home loan insurance covers the borrower and his family in the event of death, temporary or permanent disability. How to take out cheaper coverage but with sufficient guarantees? Our tips for finding the best loan insurance.
If you want to obtain a loan to finance the purchase of your main residence, you will need to take out borrower insurance. The bank will systematically offer you its group contract. However, be aware that you are not obliged to subscribe to it. Lending institutions are obliged to accept external insurance contracts that include guarantees at least equivalent to those provided by group insurance.
In other words, if you want to take out loan insurance different from that offered by the bank, it will have to contain guarantees equal to or greater than those required by the lender. The latter must also give you a standardized information sheet (FSI) which includes the imposed criteria.
The Lagarde law, which came into force in 2010, authorizes the borrower to take out loan insurance with the organization of his choice as long as it offers guarantees that are at least equivalent and therefore accepted by the bank.
In concrete terms, all you have to do is use an online comparator to find the most interesting loan insurance. Then, the bank has a period of 10 days to integrate or not this offer in its loan file. The delegation of insurance therefore makes it possible to save money by selecting less expensive coverage but also to obtain more extensive guarantees.
The loan insurance systematically offered by the bank can be particularly expensive. However, there are many cheaper insurance plans that can be found using an online comparator. This tool is very easy to use since the user only has to fill in some information concerning his personal situation and the characteristics of the loan before receiving borrower insurance quotes accepted by the bank. To obtain a final price, simply click on the desired quote. The applicant will immediately receive the health questionnaire from the insurer.
Using an online tool allows you to access the best offers on the market in a few clicks and identify the one likely to meet your expectations.
It is not always easy to choose the best loan insurance given the multitude of offers. To make your job easier, a broker will accompany you throughout the subscription phase and provide you with personalized advice. The broker has a large network of partners allowing it to offer you competitive rates and tailor-made guarantees.
Some professionals offer this service free of charge and are paid directly by insurers. So you have nothing to lose by using a broker.
