Borrower's Insurance: To Pay Off Your Mortgage, Forget About Terminating the Contract

Borrower’s Insurance: To Pay Off Your Mortgage, Forget About Terminating the Contract

Do you have butter…and butter money? Don’t even think about it when it comes to insurance. Since the insurance broker relates to one of the practical cases he has had to deal with this year, the job loss guarantee contained in your mortgage insurance contract can only be triggered in a very specific case. This optional protection, which can also double your contributions, is generally not very useful because it only protects you in case of redundancy. It is impossible for your insurance to take over your mortgage in the event of partial unemployment, expiration of a fixed-term contract, or resignation.

So some may be tempted to find an intermediate way, like this believer. His contract specified that in the event of dismissal, he was eligible for monthly compensation from his insurance company. However, in his case, it was not a matter of dismissal in the strict sense of the word, but rather of an amicable termination under the employer’s voluntary departure plan. Reason for the insurance company refusing coverage. The individual believed that it was not a matter of terminating a contract, but of termination for economic reasons such as economic dismissal.

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The Court of Cassation ruled

The insurance broker states that his analysis is wrong: “The insurance contract is a random contract, and the insurance company cannot guarantee a risk, the realization of which depends on the will of the insured.” However, the contractual breach is actually the result of the insured’s will and thus constitutes an exclusion from coverage.

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Oftentimes, this type of dispute between an individual and an insured is settled by the highest court in the country. “The Court of Cassation has indicated on several occasions that the termination of the employment contract for economic reasons resulting from a voluntary departure within the framework of a collective agreement or an employment protection scheme constitutes an amicable agreement to terminate the employment contract and not a termination. On the initiative of the employer, ”confirms the mediator.

Many conditions to meet

And even if you manage to enforce this clause in your contract, know that the terms of its application are very strict. It is first subject to a waiting period of 6 to 12 months, during which time the item cannot be activated. Once this period has passed, you are eligible for it, but you must be patient because compensation generally only starts between 3 and 9 months after a job loss, or if you fail to do so, when your first unemployment benefit is paid. And don’t expect to be completely exempt from paying your balance. The insurance company covers between 30% and 80% of your deadlines. Finally, know that the job loss guarantee ends automatically once you exceed the legal age limit stipulated in your contract. This roof ranges from 50 to 65 years depending on the cap.

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