Understand the need for credit insurance
When applying for a home loan, banks require the borrower to take out loan insurance to ensure that it receives the refunds in the event of the borrower’s death, disability or incapacity. The purpose of the borrower insurance is to protect the borrower and his family by paying the loan repayments in the cases covered by the contract.
The virtual obligation to insure his loan
Previously, banks imposed their own insurance, called “group insurance” , and took advantage of their exclusivity to set their conditions and rates. Since the implementation of the Lagarde law in September 2010, borrowers are free to choose an external insurance contract from the lending institution without the lender being able to oppose it. However, it is requested that the insurance contract guarantees be at least equivalent to the guarantees of the group contract of the bank. Thanks to online loan insurance comparators , it is possible for borrowers to compare and choose at the best price offers tailored to their needs.
Free online quote and simulation
Free and without obligation, the credit insurance comparator is an essential tool to find the insurance offer that will make you realize significant savings on the total cost of your mortgage
Paying your mortgage insurance cheaper
Thanks to the Lagarde law, it is possible for borrowers to take out insurance to guarantee their credit with an organization external to the lending institution. Yet very advantageous for borrowers, this device still remains little known to the French. Previously, the banks required the borrower to contract the insurance they offered to secure the loan. Any refusal to join this insurance entailed the immediate refusal of the loan. Although it is still required by banks to take out insurance when buying a home loan, the borrower can now decide which insurance company he will use to guarantee his loan. This significant opportunity allows borrowers to choose freely the cheapest insurance offer that best suits their needs.
Information for borrowers for their choice of insurance
As a result, it is now accessible to all to be able to save money on the total cost of the credit subscribed compared to the group contract of the bank which is a mutual insurance rather expensive and not adapted to the profile of each