Borrower insurance can pay the outstanding insured balance or loan instalments when a covered event occurs. It protects repayments according to the policy terms; it does not cover every financial difficulty. To understand what it would mean for your family, consider your income, regular commitments and each person’s insured share.
Death, autonomy and disability: distinguish the benefits
Death cover provides for repayment of the outstanding insured balance. Total and irreversible loss of autonomy, known as PTIA in France, has a specific contractual definition involving, in particular, help with everyday activities. Permanent disability and temporary incapacity benefits follow other criteria: disability thresholds, the occupation assessed, recognition by the insurer and payment limits.
Unemployment cover, where available and selected, has its own conditions. Resigning or simply stopping work does not automatically qualify. ABE Infoservice describes the different benefits.
The insured share: how much would remain to repay?
The insured share is the percentage covered for each borrower. Imagine an outstanding balance of €100,000 and two people each insured for 50 %. If one dies in covered circumstances, the insurer pays €50,000, subject to the policy terms. The other half remains payable. Insuring each person for 100 % gives different protection and has a different cost.
When choosing the split, consider whether the surviving borrower could afford the mortgage, rather than only each person’s current contribution. The shares must also meet the lender’s requirements.
During an absence from work, check how payments operate
The deferred payment period postpones the start of benefits after a covered event. Benefits may be fixed, based on the insured instalment, or indemnity-based, linked to lost income. Also check payment caps, duration, exclusions and the age at which cover ends. ANIL explains these points.
Compare protection and cost on the same basis
Compare offers with the same insured shares and over the same period: the full term for a new mortgage, or the remaining term when switching. Separate the cost of cover, any fees and changes in premiums. A lower price is useful only if the policy suits your needs and meets the bank’s required level of cover.
Our mortgage insurance guide helps you prepare the relevant documents. You can then enter your project in the simulator to have a suitable proposal assessed, whether your mortgage is new or already running.
