Borrower insurance: Can be canceled at any time

Finally completed … After invalidating the bill twice every three years, Senator finally confirmed to households on February 17 that they could end their bank loan-related insurance at any time. Noble measures in various respects for the borrower.

Borrower insurance, the Senate has introduced the possibility of terminating it at any time / iStock-legna69

Borrower insurance, the Senate has introduced the possibility of terminating it at any time / iStock-legna69

Regularly evolving law

The bank insurance market has long lacked transparency. Borrowers need to have insurance and in most cases ask the lender. However, the latter often tend to offer their own insurance products and do not always give customers time to compare the different products on the market. To increase competition, the Lagard Act in 2010 took the first step by allowing borrowers to insure non-banks that provided loans (mortgage insurance delegation). .. The Hamon Act, voted in 2014, goes one step further by allowing you to change your insurance at no cost at any time during the first year of your contract. Finally, the 2017 Birkin Act provides for an “annual substitution right,” that is, the option for the borrower to change the insurance company each year on the anniversary of the contract, by respecting the following terms: Respect the level of guarantee for new insurance that meets the principle of equivalence, ie at least the same coverage as verified by the lending bank, two months prior to the anniversary of the signing of the mortgage offer. , Make the request by registered letter with confirmation of receipt. The measures that have just been decisively adopted by the Senate will further accelerate the process. Borrowers no longer have to respect the deadline for changing insurance …

Intensifying competition in the bank insurance market

This possibility of canceling insurance at any time increases competition and allows borrowers access to offers that may be more favorable and better suited to their needs.

End of medical questionnaire with borrowing amount below a certain amount

The same law also provides for the abolition of mortgage medical questionnaires that cost less than € 200,000 and occur before the borrower’s 60th birthday. For couples with 50% insurance on each head, the maximum loan amount will be raised to 400,000 euros. Measures that benefit the majority of borrowers if more than half of the loans granted in 2021 are known to be related to amounts less than € 200,000.

Shortening the “right to be forgotten” period

The concept of “right to be forgotten” was introduced in 2015. The goal was to ensure that cancer patients no longer have to refer to insurance companies about their illness, were not punished, and enjoyed the same premiums as those they had never experienced before. I got cancer. The exemption from the declaration of this illness was subject to two conditions. Cancer that was diagnosed before the age of 21 and has been treated for 5 years. For those over the age of 21, the treatment protocol had to be completed for at least 10 years. Unanimously, this 10-year period will be shortened to 5 years.