easy change of borrower insurance

Coordinator Loic Grasset


Parliament has passed a law establishing more competition to save money in real estate purchase projects.

Borrower insurance, the subscription of which is required by banks, is intended to guarantee the total or partial repayment of a mortgage in the event of death, disability or involuntary loss of employment. To lower its cost, sometimes higher than the amount of credit interest, a new text thoroughly reviews its operation. The decryption of Astrid Cousin, spokesperson for, comparator in loan insurance.
Paris Match. What changes to expect in terms of borrower insurance?
Astrid Cousin. The Lemoine law of February 28 will allow policyholders to terminate their contract at any time and free of charge to take out a new one with a company other than that proposed by the bank issuing the mortgage. For the time being, the Hamon law grants the possibility of changing insurer within twelve months of the signing of the loan offer, while the Bourquin amendment opens this possibility on each anniversary date of the contract, subject to two months notice. Note that the Lemoine regulations still require that, in the event of termination, your future contract must present guarantees at least equivalent to the previous one.

On average, this should allow a borrower to save 50 euros per month

What is its application schedule?
The liberalization of borrower insurance will come into effect on June 1 for loan offers issued from that date. For real estate loans in progress, it will not be effective until September 1st. On average, this should allow a borrower to save €50 per month.

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The medical questionnaire is also partially removed…
The Lemoine law provides that from June 1, no information relating to your state of health or any medical examination will be imposed by the insurer to obtain your mortgage. However, this provision will only apply to loans of less than €200,000 per person. Another cumulative condition to benefit from it: the term of the credit must be prior to the 60th birthday of the insured who bears the highest quota. With regard to the maximum duration of a loan, the public concerned therefore remains above all customers under 40 years of age.

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What impacts can be expected?
The cancellation of this health questionnaire will give people who present a risk the means to access the loan. However, the lack of access to this information is likely to make banks and insurers more suspicious. Thus, healthy borrowers will potentially pay more for risky profiles.

Also read. Borrower insurance: ways to reduce the additional cost

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What other development concerns former patients?
The right to be forgotten is reinforced for candidates for a mortgage who have completed their treatment for cancer or hepatitis C. For contracts taken out from the month of June, the period for these former patients will be reduced: they will no longer have to declare the disease to their insurer if the therapeutic protocol has been completed for at least five years, instead of ten years until now, and this regardless of the age at which the condition was diagnosed.

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