Loan insurance: a new project for borrowers.

Terminating borrower insurance could become even easier. In fact, new legislative measures are in the pipeline to strengthen the mobility of policyholders, which can save several thousand USD.

A change in loan insurance to study for seniors

A change in loan insurance to study for seniors

Loan insurance is in the process of evolving again following the proposal for a law made by Senator Bourquin. It must be said that successive waves of legal easing in recent years offer interesting financial avenues for making savings. This flexibility first began with the Astro company of 2010 as well as the Hamon law dated 2014 before finally ending on January 12, 2018 with the implementation of the Bourquin amendment.

After this period, a change in loan insurance contract, or commonly called a delegation of insurance, has since been possible regardless of the date of taking out the mortgage. As a reminder, the loan insurance delegation allows you to change the insurer in charge of covering the home loan in the event of default. A fact which occurs during a death or during a situation guaranteed by the contract during the amortization phase of the credit.

And changing borrower insurance is a way of achieving up to several thousand USD over the total repayment period. This mobility is all the more interesting for seniors who are subject to paying very high insurance premiums due to a risk of death which increases proportionally with age.

End the ambiguity of the anniversary date

End the ambiguity of the anniversary date

Now, Senator Bourquin wishes to go further by implementing new directives on two main axes. Actually, the law does not detail enough the anniversary date of the contract where the borrower is able, two months before, to take steps to change loan insurance. Thus, the senator adds that this confusion plays in the favor of banking establishments which wish to retain their customers. Since no event is specified, each brand is free to decide which one to retain, which sometimes hinders attempts to change insurers.

An obligation to inform about the delegation of insurance

An obligation to inform about the delegation of insurance

Finally, Senator Bourquin now seems to go beyond a simple speaking engagement to initiate a legal framework in order to better protect consumers. Also, he wants to create a system where banks would inform their policyholders that they are able to carry out insurance delegation each year. This duty of information risks being misunderstood while borrower insurance constitutes a source of significant revenue in the balance sheet of banking establishments.

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