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How do I get a mortgage loan insurance contract?

Verified 07 September 2022 - Legal and Administrative Information Directorate (Prime Minister)

Before you make an offer for a mortgage, the bank may require you to obtain borrower insurance. The bank sets minimum guarantees (e.g. death, invalidity). She then estimates the cost of insuring your future credit. But you can go to another insurer. In all cases, you will have to complete a health questionnaire to be able to obtain an insurance contract proposal.

A borrower insurance covers the payment of all or part of the outstanding credit repayment due when you are in certain situations:

The bank to which you are applying for a mortgage may require you to obtain borrower insurance.

In this case, you will need to apply for a borrower insurance contract.

The bank can offer you its loan insurance contract or the insurance contract of one of its partners. So we talk about group insurance contract.

But you can choose to go to another insurer.

Once you have obtained the agreement of an insurer, the bank will agree to make you a loan offer.

The bank defines the characteristics of the insurance contract it requires according to the type of loan requested (to buy your main residence, for a rental investment...) and your professional status (official, employee, ...).

These are:

  • Minimum guarantees (risk of death, risk of invalidity, ...)
  • Content of each guarantee, i.e. the way in which the risk is hedged (risk covered until the end of the loan or until a certain age, ...)
  • Height at which the loan must be insured (100% or part)

The bank then does a simulation of the mortgage and insurance contract that it could offer you.

It then gives you the following information:

  • List of documents to provide to make your credit application
  • Standardised Fact Sheet . This sheet shows the characteristics of your credit application and the minimum guarantees of the required borrower insurance. It also indicates the insurance contract that the bank could offer you and its approximate cost (taking into account the characteristics of the loan, your age, the guarantees envisaged ...).
  • Custom Sheet. It is this card that defines the characteristics of the insurance contract you need to obtain. It shall contain the details of the amount to be insured, the type and content of the guarantees to be covered. These elements are defined using a maximum of 11 criteria for death, loss of independence, disability, disability and a maximum of 4 criteria for loss of employment.

The bank to which you are applying for your mortgage may offer you a loan insurance contract that it offers or that one of its partners offers. This is a group insurance contract. We talk about group insurance contract.

But you are free to go to another insurer.

In all cases, the insurance contract you choose must meet the criteria set out in custom sheet that the bank gave you.

FYI  

multiple (deadline deficiency, franchise ...) make it possible to compare insurance contracts.

The rules differ according to the characteristics of the loan:

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Loan up to € 200,000 per insured and to be repaid before age 60

The insurer does not allow you to complete a health questionnaire. It also doesn't have to have you do a health check.

Other loan

Before offering you a loan insurance contract, the insurer asks you to complete a medical questionnaire. It assesses risk based on your answers.

This questionnaire must be completed in good faith. Any omission (intentional forgetfulness) or intentional misrepresentation is prohibited. If the insurer detects the fraud when you ask for a refund of your credit, it may refuse to compensate you or obtain the termination of your insurance contract.

FYI  

the insurer may ask you to perform a supplementary medical examination.

In support of the questionnaire:

  • If you have or have increased health risk due to illness or disability, your application for borrower insurance automatically falls under Aeras convention.
  • If this is not the case, the insurer will provide you with an insurance proposal that includes the guarantees for which it provides coverage, the conditions to be met in order to trigger them, the exclusions, the amount of the monthly contribution over the total term of the loan, the cost of the insurance, the waiting times.

When the insurer offers you a borrower insurance contract, it is obligatory to attach a notice to the loan contract listing the following points:

  • Insurance risks
  • Methods of insurance coverage (conditions for obtaining credit repayment)

Warning  

all clauses in the insurance contract must be included in the information notice.

You must also be informed of the total cost of insurance over the total duration of the loan, expressed in euros.

FYI  

payment of the insurance contribution begins upon signing the advance loan offer, unless otherwise provided (example: payment on 1to release of funds).

Yes, but before changing insurers, you must ensure that you have your bank's agreement regarding the new insurance contract you want to take out.

Indeed, the bank has the right to verify that this new contract meets the guarantee level of the original insurance.

You can change insurers at any time after signing the loan.

You must send the insurer a request for termination, including by letter, by act of commissioneror by any other means provided for in the insurance contract.

You must also send an insurance substitution request to your bank.

In the event of a refusal, the bank must state the reasons for the refusal and, if so, the information and guarantees missing in the new contract. The insurance contract is not terminated.

If agreed, she has 10 working days after receipt of your request, to amend the loan agreement by amendment, in particular to indicate the new APR: titleContent.

You must inform the new insurer of your bank's decision by registered mail or email (email).

FYI  

each year, the bank must inform you of your right to terminate the borrower insurance contract at any time, and how to do so.

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