At a minimum, the weight of the insurance represents 25% of the total cost of the mortgage, but can reach a third. This is why it is essential to choose it carefully, while remaining properly protected throughout your loan. Is it better to choose the offer of your bank or that of another establishment? Deciphering the issues.
What is a “group insurance offer”?
Group insurance is a group offer, offered by the lender: already negotiated with an insurer, it lists the borrower in a category and applies the associated rates by age group.
The advantage of this solution is that the risks are shared. Collective, it also provides a real economy of scale – because of the large number of people who subscribe to it.
An even more significant reduction in the cost of insurance for borrowers whose age reaches the limit of the tranche to which they belong. Indeed, they then benefit from the same price as borrowers who are 8 years younger, but categorized in the same tranche.
In addition, it is easier to take out, because the formalities are simpler to carry out, the estimate being established directly by the financial adviser who studies the loan request.
What is the difference between group insurance and delegated insurance?
Unlike group insurance, individual insurance is based on a study of personalized risk. In other words, each borrower, according to his personal situation, benefits from a unique insurance cost.
Consequently, a young borrower will have an interest in studying the delegation offers, since age remains one of the main pricing criteria.
A comparison, now made easier by the obligation to produce a European standardized information sheet (FISE) with any mortgage offer. Indeed, since October 1, 2015, all banks must hand – ahead of their loan offer – personalized card on which guarantees include up to 15 selected on the list of 26 defined by the CCSF (Sector Advisory Committee Financial).
Why is delegated insurance more relevant?
As its name suggests, delegated insurance is an offer external to that of the bank. It is built on the basis of finer criteria: obviously, age and profession, but also the amount borrowed and the state of health, are also taken into consideration. The establishment simply evaluates with greater precision the risk factor that you represent.
For example, a 30-year-old borrower who does not have a health problem and who does not smoke is a secure profile for banks. Not to mention that his income is likely to increase. Typically, a case that should study more closely, the conditions of delegation to optimize the cost of its borrower insurance!
Note that in accordance with Hamon law, you can change insurance until the first anniversary of the contract. And according to Law No. 2017-203, applicable since 1 March 2017 for new contracts and on 1 January 2018, for the ancients, this change will take place on each anniversary date.
Do not hesitate to download our guide for free to discover all these subtleties and determine the relevance of changing them and / or studying other proposals.