To subscribe to a borrower insurance cover is not an obligation; however, it is customary for the lending institution to require the underwriting to protect itself from the debtor’s disability and death risks.
The borrower is entitled to choose a contract of the insurer of his choice (external delegation) without being obliged to take the one proposed by his future creditor (group insurance).
The time when the borrower had to accept the insurance offered by the bank is over. According to the Lagarde Law, the subscriber of a bank loan is entitled to play the competition by freely choosing his insurance contract.
The home loan insurance policy will be delegated to an insurer other than the one chosen by the Glass familyur. Hence this name ” insurance delegation ” or individual contract. The idea is to find a protection insurance offering guarantees equivalent to that of the bank, but whose contributions are cheaper and financially more advantageous.
Unlike credit redemption, not only does external borrower insurance reduce monthly payments, it also reduces the amount of debt.
Renegotiate your borrower insurance coverage
The borrower insurance coverage can significantly increase the side of a bank loan. In general, it represents about 25% of the debt to be paid. It will be better if we find a way to lower it. And the law on bank credits does allow this renegotiation of insurance.
The finding shows that it is not uncommon to find borrowers who manage to halve their contributions by having this reflex stingy. This renegotiation act can take two different forms: renegotiation with the initial credit institution or change of insurer.
In this second case, the customer is asked to adopt a membership with an outside company. This is often the most effective solution, especially if one is helped by a broker specialized in credit and insurance.