Often considered a mere formality when applying for a loan, loan insurance plays a central role in securing a real estate project. It protects the borrower, his or her loved ones and the lending institution. The cardif.fr website, developed by BNP Paribas Cardif, provides practical tools to help you estimate your insurance needs and better understand the different options available.
Taking out a loan to buy a home commits the borrower for many years. In the event of unforeseen circumstances such as illness or death, repayment of the monthly instalments can become more complicated. This is where mortgage insurance comes in : by taking over the repayments, it enables the household to preserve its financial equilibrium, while guaranteeing the bank continuity of repayment.
For a quick estimate, online tools allow you to simulate different situations. This is the case on cardif.fr, where the simulator gives you an initial idea of the cost of insurance according to your profile and project.
Insurance that’s becoming essential
In theory, borrower’s insurance is not required by law. In practice, however, it is required by the vast majority of banks. Without it, it is almost impossible to obtain financing, especially for a major property purchase.
What has changed in recent years, however, is the possibility for borrowers to choose a contract other than the one offered by their bank. This right, known as “delegated insurance”, enables borrowers to opt for equivalent cover, but often more competitive or better suited to their personal situation.
Mortgage loan insurance can cover various risks, depending on the cover chosen. The most obvious, death cover, allows the insurer to reimburse the outstanding capital, so that the family does not have to bear the burden. This is followed by coverage for permanent disability, temporary inability to work and, in some cases, loss of employment.
However, not all contracts are created equal: it’s important to examine the level of coverage, compensation conditions, possible exclusions and waiting periods or deductibles. It’s often in the details that the real differences lie.
A variable, evolving contract
The cost of creditor insurance depends on a number of parameters : the borrower’s age, state of health, amount borrowed, term of credit, cover selected, etc. There are two main methods of calculation. Some contracts apply a fixed premium to the capital borrowed, while others calculate it on the basis of the outstanding capital, which can prove less expensive over the years.
Some offers are aimed specifically at high-risk professions, the self-employed or older borrowers. Others include support services, such as administrative assistance or help with returning to work. It’s best to take the time to compare, ask questions and, if necessary, be accompanied by an advisor.
Thanks to recent changes in regulations, notably the Lemoine law which came into force in 2022, it is now possible to cancel your loan insurance at any time, without charge or penalty. This means that it is no longer necessary to wait for the anniversary of the contract or to respect specific deadlines.
This major change enables borrowers to benefit from more advantageous offers n has been signed. Cancellation and replacement procedures are now much easier, thanks in particular to the online services offered by many insurers.
On cardif.fr, you can follow your contract, take steps or contact an advisor without having to go anywhere. A certain “flexibility” in a context where real estate projects are often time-consuming…
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