Buying real estate as a couple: the insurance portion can range from 100 to 200%
Talking about quotas in the field ofBorrower insurance to assign Percentage of borrowed capital covered by insurance. Let’s take an example. One borrower takes a Mortgage 100,000 euros over 15 years. In this case, the stake should be 100%. This means that in the event of a claim, such as an accident at work resulting in a total disability, the insurance company covers the entirety of the principal outstanding, as per the terms of the contract.
Since June 1, 2022, the Lemoine Act has made it possible to change the loan insurance at any time, without waiting for the anniversary date. The opportunity to play the competition and adjust the quota.
Now let’s take the example of a couple who borrowed €200,000 over 20 years. In this case, The share must be from 1 to 100% for each participating borrower They represent between 100% and 200% in total. In other words, it is possible that the share of each partner will be 50% (that is, 100% in total). In this case, if one of the borrowers dies or is a victim of an accident, the insurance will cover half of the capital due, and the rest will be borne by the remaining partner. By the same logic, insurance can be done at 70/30 as well as at 100/100, etc.
How do you determine the loan insurance ratio?
Be careful, in case Underwriting a mortgage for severalThe stake should not be chosen lightly. 100% insurance means that one of the partners will have a large or less credit to be paid in the event of a claim. Being 200% insured makes it possible to cover participating borrowers with the same ratios, but Contributions are twice their height.
In this case, How is the borrower’s insurance rate selected? It all depends on the composition of the spouses. A pair of First time buyers, young people, who are healthy and have a similar income, will have every interest in choosing a 50/50 share. On the other hand, if one of the partners has health problems, his share should be higher in order to protect himself from the risks of sick leave or death. This is also the case if one of the partners has a particularly large income compared to the other.
If it is legally possible to Adjustment of the share during the contractThis process is still difficult. Therefore it is necessary to take the time to think and predict any events that may occur in the life of the family: the birth of a child, a change of job, real estate projects, etc.