When subscribing to a consumer credit, the lending organization offers loan insurance to cover itself in the event of unpaid bills related to a health problem or loss of employment. In fact, the borrower has no obligation to subscribe, especially as it has a negligible cost. Nevertheless, he has an interest in protecting himself against the vagaries of life. How to make sure at a lower cost?
The group contract anchored in practices:
In fact, insurance is included in the loan offer: this is called the group contract. If the borrower refuses to subscribe, the lender may decide not to grant the credit.
Conditions of acceptance of termination
It is possible to choose another insurer to reassure the lender. But the delegation of insurance will only be accepted if the borrower presents his financial institution with equal coverage.
To enable comparators, the lending organization is therefore obliged to display in its contract or advertisement all the guarantees offered in the contract. At a minimum, they must guarantee death, illness and disability. Depending on the professional profile, the job loss guarantee is recommended.
Health and consumer loan insurance
In case of health risks, a medical questionnaire must be completed. It is better not to make false declarations under pain of forfeiture or nullity of the contract. For example, if the borrower declares that they do not smoke and die of tobacco-related lung cancer, the credit will not be supported.
In case of serious illness, the Aeras Convention gives right to forgetfulness. No declaration is mandatory if the end of the protocol of care is greater than 5 years for a cancer diagnosed before 18 years, 10 years for the other cases.
The interest of the delegation of insurance
Group insurance contracts are standard and can represent a significant cost for credit. Individual insurance will offer customizable guarantees. For example, a young borrower will have fewer health risks, so his insurance policy will cost him much less. On the other hand, the insurance delegation is interesting if the amount of the loan for consumption is high.
Our advice: Since the law, the borrower has the possibility to cancel the insurance taken out in his loan agreement after one year by registered mail with acknowledgment of receipt, then 15 days before the anniversary date of the contract the years following the same terms.