Borrower insurance is the primary protection for any mortgage. In the event of uncertainty in the life of which the insured is a victim (death, disability / disability), it intervenes to compensate the bank up to the level of the guarantees and shares subscribed. despite of Freedom to choose the contractUnfortunately, to the detriment of his financial interest, the borrower is often covered by the contract offered by his bank. Reversible mode thanks Lemoyne Law It entered into force on 1Verse June 2022. Take advantage of this new right without delay Reduce the cost of securing your loan.
Change the borrower’s insurance at any time
All borrowers are required to have insurance Cover your credit in the event of an involuntary disaster Which prevents him from paying his debts (death, cessation of work, disability, or even job loss). This insurance must be distinguished from another security, the mortgage, money lender’s lien or surety, which comes into play if there is a default for other reasons not covered by the insurance.
Although not legally required, theBorrower insurance Methodically required by the bank And come on Increase the total cost of the mortgage. Contributions weigh on average one-third of this cost, which he expresses April (Global Effective Annual Rate), i.e. the second fee charged after interest.
Until now it was It is hard to escape the insurance his bank offers. More than 8 out of 10 loans are now secured under a banking group contract despite regulations calling for freedom of choice since September 2010 (Lagarde’s law).
This selection is offered by third-party insurance companies, Two to four times cheaper of the banks, but successive measures to allow the formula to be changed during the loan (Hamon’s and Burquin’s laws) did not make it possible Liberalization of the insurance market for the borrower. The last attempt must be the correct one.
It was adopted in February 2022 and entered into force on the 1stVerse after june, Lemoyne Law Borrowers are allowed Change your mortgage insurance at any timeThis is the day after signing the loan offer. No need to wait for the due date to apply Termination / replacement as required by the Bourquin Amendment, not even to respect a minimum duration of commitment. From now on, the borrower has the right to denounce bancassurance and Subscribe to a lower cost formula with tailored guarantees when he sees fit.
to Save hundreds or even thousands of dollars To secure your borrower and reduce your cost of credit by the same amount, follow the guide!
Save money with Lemoine’s Law
The main reason for Borrower insurance change who is he Saving Money. On average, for a €250,000 loan over 20 years, the earnings fluctuate Between 10,000 euros and 15,000 euros According to the borrower’s profile by replacing the bancassurance with an authorized offer within three years of signing the loan offer.
Here is a concrete example:
Jan and Marin, two executives aged thirty, took out a mortgage loan of €270,000 over 20 years in January 2022, covered by Bancassurance of 0.34% per head. They pay €153 in insurance per month at a total cost over a period 36,720 euros.
After the replacement in January 2023, it was released Insurance at 0.12% On each head it costs them 49 euros per month, and 11,799 euros over the remaining term, ie Saving €104 per month for a total gain of €23,085.
You can consult Real estate purchasing power barometer To measure the financial impact of the Lemoine Act.
an interest Insurance replacement Also located at protection. Change allows youImprove your coverage Thanks to external contracts with targeted guarantees. People who work in a risky profession such as Firefighter You can subscribe to it On-demand guarantees who take into account the problems of their profession.
How do borrower insurance offers compare?
The sooner you change the insurance, the higher the winnings. Since the insurance premium is calculated on the principal outstanding, the approach is optimized in the early years of the loan.
Finding the right insurance for your situation couldn’t be easier. Just use a file Compare home loan insurance Online, a Fast and free tool This allows you to gauge whether your current contract is more expensive than those offered by the competition. You have access to Several quotesThank you Loan insurance simulation-You can evaluate the cost of each formula over different periods.
Do not hesitate to ask for help from a Home loan insurance broker for the better Understanding guarantees And adjust Good amount of insurance Depending on the profile of each co-borrower. The bank cannot refuse an external offer made at least equivalent guarantees to those of his own contract.
At Magnolia.fr, our teams of experts manage it all Termination / replacement proceduresthus avoiding the time-consuming and often complicated procedure for a novice doctor.
Also be aware that in the case of The eligible capital is less than 200,000 Euros (per insured person) to be compensated before the age of 60y Birthday I ran away from Medical questionnaire. This new right he introduced Lemoyne Law Insurance is easier to access for people whose health histories have already been stigmatized. the The end of the medical check In the borrower’s insurance under certain circumstances is a big step forward to Sick and elderly who received broken surcharges or warranty exclusions.
at the time it wasinflation Purchasing power lowers, families can borrow immediately Recover tens of euros per month Simply by changing insurance thanks to Lemoine’s Law.