Home loans: how does the job loss insurance work?

Verified 23 April 2024 - Directorate for Legal and Administrative Information (Prime Minister)

Before granting a mortgage, the bank usually requires you to take out borrower insurance covering the risks of death, disability and disability. But you are free to choose a contract that also covers the risk of job loss. With this last guarantee, the insurance covers the payment of your monthly payments (in whole or in part), when you lose involuntarily your job.

The job loss guarantee can be chosen by a salaried worker.

In most cases, when signing an insurance contract that includes a guarantee of job loss, the employee must not be on probation, on notice of dismissal or over 50 years of age.


The bank with which you sign the mortgage cannot require you to take out job loss insurance.

Typically, unemployment insurance covers dismissal, provided that it qualifies for unemployment benefits.

Consequently, the resignation, the conventional break, on dismissal for misconduct may be excluded.

The insurance contract may in particular provide that compensation for loss of employment shall cover:

  • Or the full monthly payment of your loan
  • That is only part of the monthly payment. For example, the difference between your monthly loan amount and your unemployment benefit amount.

The insurance contract may also provide for:

  • A maximum monthly allowance (the allowance paid to you each month does not exceed a maximum amount)
  • Maximum duration of compensation (compensation is paid to you for a maximum number of consecutive months)
  • A maximum compensation frequency (the number of times compensation is triggered, is capped)
  • One waiting period (no compensation is paid to you within the first few months of the insurance contract)
  • One period of exemption (no compensation is paid to you immediately after you lose your job).


Each job loss insurance contract defines its own terms and conditions for compensation. To compare multiple contracts, you need to compare both the terms of compensation and the cost of insurance.

You have to prove to your insurer that you have lost involuntarily your job.

Typically, you must provide the following documents:

  • Employment contract
  • Termination Letter
  • Certificate intended for France Travail (formerly Pôle emploi).

The complete list of documents to be provided to your insurer is indicated in your insurance contract.


When you find a job again, you must also report it to your insurer. How you must inform them is indicated in your insurance contract.