Insurance during a loan consolidation is not compulsory but it is highly recommended, here are the characteristics of this cover.
Credit repurchase insurance: senior profile
Insurance, whether for a loan or for a loan repurchase, can be very costly in the context of a senior profile, that is to say a borrower (alone or in a couple) with more than 50 years. This is explained by the possible health problems that can arise during life. This cover is precisely designed to cope with the unexpected.
In addition, a household that is preparing to reduce its monthly payments in order to anticipate the drop in income caused by the transition to retirement will rather have an interest in finding insurance that is inexpensive but offers important guarantees.
Insurance guarantees for senior: buy back credits
This guarantee is systematically found in all loan group insurance, this guarantee ensures the reimbursement of the principal owed. This warranty generally ends at 90 years.
The incapacity for work / invalidity guarantee
These are ITT (Total Temporary Disability), IPT (Total Permanent Disability) and IPP (Partial Permanent Disability) guarantees. The monthly loan repayment is paid by the insurer. This guarantee mainly concerns seniors who are not yet retired.
The unemployment guarantee
This is a guarantee which takes into account the reimbursement of the monthly payment in the event of unemployment. A waiting period is often provided as well as the level of compensation for the monthly payment (totally or partially).
Find cheaper loan buyout insurance
The insurance offered by credit institutions is not always the most attractive in terms of cost. The banking intermediaries specializing in this type of cover can offer an offer with guarantees equivalent to that of the lender but with a more attractive price, this is called delegation of insurance. Hamon law now allows you to cancel your insurance within one year of purchasing it to find a cheaper one.
In order to fully assess the cost of insurance, it is necessary to compare the TAEA: effective annual insurance rate. It is sort of the APR of the insurance which includes the overall annual cost as a percentage of the cover.