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Home loans: how does the job loss insurance work?

Verified 25 September 2020 - Directorate for Legal and Administrative Information (Prime Minister)

Before granting a mortgage, the bank usually requires you to take out borrower insurance. This insurance most often covers the risks of death, disability and incapacity. However, you are free to subscribe in addition to job loss insurance, if you wish. Such insurance covers the payment of your monthly payments (in whole or in part) when you lose your job, under certain conditions.


each job loss insurance contract has its own terms and conditions defining the rules for compensation. These conditions must be carefully studied to compare the various job loss insurance contracts.

For whom?

This insurance may be taken out by an employee.

In most cases, they should not be on probation or on notice of dismissal.


most insurers refuse employees over the age of 50.

What is meant by "job loss"?

Employment loss insurance most often covers economic redundancy.

Resignation, breach of contract, dismissal for misconduct are therefore excluded.

What compensation for job loss?

Employment loss insurance may cover the payment

  • in full of your monthly loan
  • or only part of the monthly payment (for example, the difference between the amount of the monthly payment and the amount of your unemployment benefit).

However, there are often:

  • a maximum monthly allowance,
  • a maximum period of compensation (only for several months),
  • maximum compensation frequency (number of times compensation is triggered).

In general, compensation may not be granted in the following cases:

  • Within the first few months following the date on which the insurance was taken out (waiting period)
  • Immediately after you lose your job (period of exemption)
How do I get compensated?

You will have to justify your situation by providing your insurer with certain documents.

Non-exhaustive list:

  • Employment contract
  • Termination Letter
  • Certificate for Pôle emploi


when you find a job, you must also report it to your insurer, following the reporting method provided for in your insurance contract.