How to save on your credit insurance with borrower insurance delegation

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  Summary

  • Introduction
  • Comparison of borrower insurance delegation offers
  • Negotiation of rates and guarantees with insurers
  • Optimization of your borrower profile to reduce costs
  • Questions and answers
  • Conclusion

“Delegate, save: borrower insurance at your fingertips!”

Introduction

The delegation of borrower insurance is a solution allowing borrowers to save money on their credit insurance. It consists in choosing an insurance outside that offered by the lending institution, offering equivalent or superior guarantees, but at a more advantageous price. This practice is regulated by law and allows borrowers to benefit from better coverage while reducing the total cost of their mortgage.

Comparison of borrower insurance delegation offers

Borrower insurance is an essential guarantee for lending institutions when taking out a mortgage. It covers the risks associated with the borrower’s inability to repay his loan in the event of death, disability or incapacity for work. However, this insurance can represent a significant cost for borrowers. Fortunately, there is a solution to save on this insurance: the delegation of borrower insurance. In this article, we will explain how to compare borrower insurance delegation offers to save money.

Insurance delegation borrower is to take out credit insurance with an insurer external to the lending institution, rather than choosing the group insurance offered by the bank. This practice has been governed by the Lagarde law since 2010 and reinforced by the Hamon law in 2014, which allows borrowers to freely choose their borrower insurance, provided that the guarantees are equivalent to those offered by the bank.

To compare borrower insurance delegation offers, it is essential to take into account several criteria. First of all, it is advisable to check the guarantees offered by the various insurers. Indeed, for the delegation of insurance to be accepted by the bank, it is imperative that the guarantees are at least equivalent to those of the group insurance. It is therefore important to carefully read the general conditions of the contracts and to ensure that the guarantees correspond to your needs and your personal situation.

Then, it is necessary to compare the rates of the different borrower insurance delegation offers. The cost of insurance is usually expressed as a percentage of the capital borrowed and varies according to the borrower’s age, profession and state of health. It is therefore important to request personalized quotes from several insurers to be able to compare rates and choose the most advantageous offer.

In addition, it is also important to take into account the quality of service and the reputation of insurers. Indeed, in the event of a claim, it is essential to be able to count on a responsive insurer who is attentive to your needs. To do this, do not hesitate to consult the opinions of customers on forums and specialized sites, as well as to seek advice from those around you.

Finally, it is recommended to use a borrower insurance broker to assist you in your process of comparing insurance delegation offers. The broker has in-depth knowledge of the insurance market and will be able to direct you to the offers best suited to your profile and your real estate project. In addition, he will be able to negotiate for you the best conditions with insurers and make you benefit from advantageous rates.

In conclusion, the delegation of borrower insurance is an interesting solution to save on the cost of your credit insurance. For this, it is essential to compare the offers taking into account the guarantees, prices, quality of service and reputation of the insurers. Do not hesitate to call on a borrower insurance broker to support you in this process and help you find the most advantageous offer for your real estate project.

Negotiation of rates and guarantees with insurers

Borrower insurance is an essential guarantee for lending institutions when taking out a mortgage. It covers the risks associated with the borrower’s inability to repay his loan in the event of death, disability or incapacity for work. However, this insurance can represent a significant cost for borrowers. Fortunately, there are solutions to save on your credit insurance, in particular thanks to the delegation of borrower insurance. In this section, we’ll cover negotiating rates and coverages with insurers to help you save money.

First of all, it is important to understand that the delegation of borrower insurance consists of taking out credit insurance with an insurer external to the lending institution, rather than choosing the group insurance offered by the bank. This approach generally allows you to benefit from more advantageous rates and guarantees better suited to your profile and your needs. Since the implementation of the Lagarde law in 2010, borrowers have been able to freely choose their borrower insurance, provided that the guarantees are equivalent to those offered by the bank’s group insurance.

In order to take advantage of the benefits of borrower insurance delegation, it is essential to negotiate the rates and guarantees with the insurers. To do this, the offers of several insurance companies should be compared, taking into account various criteria such as the total cost of the insurance, the guarantees offered, the exclusions of guarantee, the waiting periods and deductible, as well as the terms of termination and renegotiation of the contract.

When negotiating rates, it is important to consider how the insurance premium is calculated. Indeed, some insurance companies calculate the premium on the initial capital borrowed, while others calculate it on the capital remaining due. This difference can have a significant impact on the total cost of insurance. In addition, it is recommended to favor contracts with fixed contributions, which make it possible to know in advance the amount of the insurance premium throughout the duration of the loan.

With regard to the guarantees, it is essential to ensure that they are adapted to your personal and professional situation. For example, if you practice a high-risk profession, it may be wise to take out a work incapacity guarantee specific to your profession. Similarly, if you have a medical history, it is important to check that the warranty exclusions do not penalize you in the event of a claim.

To facilitate the negotiation of rates and guarantees with insurers, it may be useful to call on a borrower insurance broker. This professional has in-depth knowledge of the credit insurance market and can help you find the offer best suited to your profile and your needs, while negotiating the best price conditions.

Finally, it is important to keep in mind that the delegation of borrower insurance is not a definitive process. Indeed, thanks to the Hamon law of 2014 and the Bourquin amendment of 2018, borrowers have the possibility of terminating and renegotiating their credit insurance each year on the anniversary date of the contract. This possibility offers an additional opportunity to make savings by bringing about competition between insurers.

In conclusion, the delegation of borrower insurance is an interesting solution to save on your credit insurance. To get the most out of it, it is essential to negotiate the rates and guarantees with the insurers, taking into account your profile and your specific needs. Do not hesitate to call on a borrower insurance broker to support you in this process and optimize your chances of saving money.

Optimization of your borrower profile to reduce costs

Borrower insurance is an essential guarantee for obtaining a mortgage. It protects the borrower and the bank in the event of inability to repay the loan due to death, disability or incapacity for work. However, this insurance can represent a significant cost in a household’s budget. Fortunately, there are solutions to save on your credit insurance, in particular thanks to the delegation of borrower insurance. In this article, we will explain how to optimize your borrower profile to reduce the costs of your credit insurance.

First of all, it is important to understand that the bank which grants you the mortgage will systematically offer you its borrower insurance. However, since the implementation of the Lagarde law in 2010, you have the possibility of choosing a borrower insurance external to the bank, this is called the delegation of insurance. This option allows you to compare the offers on the market and choose the one that best suits your needs and budget.

To optimize your borrower profile and reduce the costs of your credit insurance, it is essential to prepare your file well. Indeed, insurers take into account several criteria to determine the amount of the insurance premium, such as age, professional situation, medical history and lifestyle. Thus, the more your profile presents risks, the more the cost of the insurance will be high.

One of the first things to consider when optimizing your borrowing profile is your age. Indeed, the younger you are, the lower the risks and therefore the lower the cost of insurance will be. If you are a couple, it may be interesting to divide the insurance portion between the two borrowers according to their age and their professional situation. For example, if one of the borrowers is younger and has a stable job, it may be wise to assign him a higher insurance quota.

Then, your professional situation is also a determining criterion for insurers. If you are on a permanent contract, you will generally benefit from more advantageous conditions than if you are on a fixed-term or temporary contract. In addition, some professions are considered riskier than others, which can impact the cost of insurance. Thus, if you exercise a profession at risk, it may be interesting to take out specific insurance to cover these risks and thus reduce the cost of borrower insurance.

Regarding the medical history, it is important to fill in the health questionnaire correctly and not to omit any information, as this could lead to the nullity of the insurance contract in the event of a claim. If you present medical risks, it is possible to negotiate with the insurer to obtain more advantageous conditions, in particular by accepting an exclusion of guarantee or by taking out additional insurance.

Finally, lifestyle habits are also taken into account by insurers. Thus, if you are a smoker, it is recommended that you quit smoking before taking out borrower insurance, as this can significantly reduce the cost of the insurance premium. Similarly, if you practice a risky sport, it may be worth taking out specific insurance to cover these risks and thus reduce the cost of borrower insurance.

In conclusion, optimizing your borrower profile is essential to reduce the costs of your credit insurance. Thanks to the delegation of borrower insurance, you have the possibility of comparing the offers on the market and choosing the one that best suits your needs and your budget. Do not hesitate to call on an insurance broker to assist you in this process and help you find the best solution for your real estate project.

Questions and answers

Question 1: What is borrower insurance delegation and how can it help me save on my credit insurance?

Answer: The delegation of borrower insurance is the fact of choosing an external insurance to that offered by the bank to cover your mortgage. This can help you save money by allowing you to compare offers and choose the one that offers the best guarantees at the best price.

Question 2: How can I compare borrower insurance delegation offers to find the best option for me?

Answer: You can compare offers by using online comparators, by consulting insurers’ websites or by contacting insurance companies directly. Take into account the guarantees offered, the prices, the exclusions and the conditions of termination to choose the offer that best suits your needs.

Question 3: What are the steps to follow to set up a borrower insurance delegation and save on my credit insurance?

Answer: To set up a loan insurance delegation, start by comparing the offers and choosing the one that suits you best. Then, inform your bank of your intention to delegate the insurance and provide it with the necessary documents (insurance contract, membership certificate, etc.). The bank must accept the delegation if the guarantees are equivalent to those of its contract. Once the delegation has been accepted, you will be able to benefit from the savings made on your credit insurance.

Conclusion

In conclusion, to save on your credit insurance, the delegation of borrower insurance is an interesting option. It allows you to choose an external insurance to that offered by the bank, thus offering the possibility of comparing the offers and selecting the one that best suits your needs and your budget. This can lead to significant savings on the total cost of your credit insurance.