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FAQ
Borrower's insurance is a protection required by banks for a mortgage loan. It covers loan repayment in case of death, disability, incapacity, or job loss of the borrower.
It's not legally mandatory, but it's systematically required by banks to grant a mortgage loan. Without it, a loan is rarely granted.
Yes. Thanks to the Lemoine law (2022), you can now change your borrower's insurance at any time, free of charge, provided you offer guarantees equivalent to those required by the bank.
Group insurance is offered by the bank itself, with a mutualized rate. Delegated insurance allows you to subscribe to external insurance, often cheaper and personalized according to your profile.
The main guarantees are: death, total and irreversible loss of autonomy (PTIA), permanent disability, temporary incapacity, and sometimes job loss. They vary depending on the contracts.
The rate depends on your age, health condition, profession, smoker/non-smoker status, borrowed amount, loan duration, and chosen guarantees. A medical questionnaire may be required.
Yes, in some cases (loan under €200,000 per person and repayment before age 60), you can benefit from insurance without a medical questionnaire, according to the Lemoine law.
Compare the guarantees, exclusions, waiting periods, total cost over the duration, and contract flexibility. Using a broker can help you find the best offer tailored to your profile.
Contact an Expert Advisor at: 01 53 34 44 08 (Non-Premium Call) Monday to Friday - 8am to 6pm
Borrower’s insurance is an essential element to secure your real estate project. It offers peace of mind by guaranteeing the coverage of monthly payments or all or part of the remaining capital due in case of death, disability, or “work incapacity. Choosing it well according to your situation and needs is maximizing the protection of your household.”
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When you take out a mortgage loan for your main residence, second home, or rental investment, your bank or lender will ask you to subscribe to borrower's insurance to guarantee your loan in case of unforeseen events or life accidents. Your monthly payments will generally be covered by your insurer in case of a claim.
Even if it's not a legal obligation, taking out borrower's insurance is required by the lending institution to obtain a mortgage loan. It is intended to guarantee the payment of the remaining capital due or loan installments if the borrower can no longer meet their payments due to certain events.
This insurance includes as main guarantees the death guarantee and the Total and Irreversible Loss of Autonomy (PTIA) guarantee. It may also include, depending on your real estate project, Total Permanent Disability (TPD) or Partial Permanent Disability (PPD), or Total Work Incapacity (TWI). The conditions for triggering these guarantees vary from one contract to another. The job loss guarantee is offered optionally to the borrower when they are employed on a permanent contract. It covers the risk of involuntary job loss following dismissal. Again, each insurer sets its conditions: waiting period, maximum duration of compensation, age limit for job loss...
Certain dangerous professions, high-risk sports, or diseases may lead to exclusions of guarantees regarding loan insurance. These particular situations may also lead to the application of an additional premium.
The rate of borrower's insurance varies according to age. Insurance companies adopt increased loan insurance rates by age bracket. Consequence of the increase in the insurance rate: the higher the age, the higher the overall cost of credit. For example, from age 60, the TAEA (Annual Effective Rate of Insurance) can climb up to 0.60% of the borrowed capital compared to 0.15% to 0.30% for a younger borrower.
Age brackets Average insurance rates “
Under 30 years 0.07% to 0.36%
Under 45 years 0.16% to 0.36%
Under 55 years 0.37% to 0.65%
Average borrower's insurance rates, across all banking institutions according to age:”
Age of borrower Average TAEA
Under 30 years 0.43%
31 to 35 years 0.46%
36 to 40 years 0.62%
41 to 45 years 0.65%
46 to 50 years 0.76%
51 to 60 years 0.90%
over 60 years 1.23%
What is the average cost of borrower's insurance?
To determine the cost of your borrower's insurance, your insurer evaluates several risk factors related to death, disability, incapacity, job loss... The lower the risks, the lower the cost of your borrower's insurance will be.
Among the main criteria for assessing risk are:
Your age
Your health condition: chronic diseases (diabetes, asthma, high blood pressure, cardiovascular diseases...) allergies, previous major operations or health problems, ongoing treatment...
Whether you are a smoker or non-smoker
Regular practice of extreme sports...
Your professional situation: high-risk job, frequent business trips, professional activity involving significant manual work, etc.
The amount and duration of the loan
To find the cheapest loan insurance contract, you must consider your needs based on your profile.
Borrower's insurance comparator
Choosing the best borrower's insurance on the market requires a careful analysis of available offers, as this insurance is essential to guarantee the coverage of your credit in case of unforeseen events. To do this, using an online comparator is highly recommended. In a few clicks, you can obtain a list of the best offers adapted to your situation by taking into account several criteria:
The proposed guarantees that will cover you according to your profile. While taking into account their extent, their exclusions, basic and optional guarantees
The terms of application of the loan insurance contract (age limit, possible waiting periods, deductible, etc.)
The insured quota (the share of borrowed capital covered by the loan insurance)
Application fees
The cost of borrower's insurance per year and per month.
Moreover, note that some insurers may refuse or exclude certain risks, or even apply an additional premium after studying your medical questionnaire.
Some exclusions concern all insurance companies (such as suicide) while others are specific to each contract (an activity deemed risky, regular practice of an extreme sport, age limits, etc.).
To find the cheapest loan insurance contract, you must consider your needs based on your profile.
Borrower's insurance comparator
Choosing the best borrower's insurance on the market requires a careful analysis of available offers, as this insurance is essential to guarantee the coverage of your credit in case of unforeseen events. To do this, using an online comparator is highly recommended. In a few clicks, you can obtain a list of the best offers adapted to your situation by taking into account several criteria:
The proposed guarantees that will cover you according to your profile. While taking into account their extent, their exclusions, basic and optional guarantees
The terms of application of the loan insurance contract (age limit, possible waiting periods, deductible, etc.)
The insured quota (the share of borrowed capital covered by the loan insurance)
Application fees
The cost of borrower's insurance per year and per month.
Moreover, note that some insurers may refuse or exclude certain risks, or even apply an additional premium after studying your medical questionnaire.
Some exclusions concern all insurance companies (such as suicide) while others are specific to each contract (an activity deemed risky, regular practice of an extreme sport, age limits, etc.).
Select only the guarantees you need
A loan insurance contract includes mandatory guarantees and optional guarantees depending on your profile and your real estate project.
When buying your main residence, the guarantees required by banks are at minimum death and PTIA. Depending on the banks, incapacity (TWI) and TPD, or even PPD, are also requested. For the purchase of a rental investment, the requirements are less important because the rent can often cover the loan installments.
By selecting only the basic guarantees as well as the optional loan insurance guarantees necessary according to your profile, you can adjust the cost of your loan insurance.
A loan insurance contract includes mandatory guarantees and optional guarantees depending on your profile and your real estate project.
When buying your main residence, the guarantees required by banks are at minimum death and PTIA. Depending on the banks, incapacity (TWI) and TPD, or even PPD, are also requested. For the purchase of a rental investment, the requirements are less important because the rent can often cover the loan installments.
By selecting only the basic guarantees as well as the optional loan insurance guarantees necessary according to your profile, you can adjust the cost of your loan insurance.
The loan insurance quota represents the share of borrowed capital that is guaranteed by your mortgage loan insurance contract. It therefore determines the share of borrowed capital that will be covered by the insurer if one of the co-borrowers was no longer able to repay the mortgage loan. The loan insurance quota must be at least equal to 100% per loan. Be aware that the quota of your loan insurance cannot be changed throughout the duration of your mortgage loan.
If you borrow alone, you will be insured at 100%. For two borrowers, you can choose insurance between 100 and 200%. Here are some examples:
each is insured at 100%;
you are each insured at 50%;
one is insured at 80% and the other at 20%;
one is insured at 100% and the other at 50%.
The amount of premiums increases as your level of protection strengthens. A 200% quota doubles the amount of your premiums but guarantees you a maximum level of protection.
If you already have an ongoing loan insurance contract, know that thanks to insurance delegation, you can change contracts to find one at the best price by meeting certain criteria. Since the Lagarde law of 2010, you are no longer obligated to subscribe to the loan insurance offer proposed by your bank: this is insurance delegation.
In other words, you delegate your loan insurance to an external insurer. Generally, this leads to significant savings! Opting for insurance delegation allows you to re-compete your rate according to market cost. You can then change your loan insurance contract for a less expensive offer.
When to change loan insurance?: towards cancellation at any time of loan insurance since June 1, 2022
Since June 1, 2022 for new loan offers, the Lemoine law provides for the possibility of canceling one's loan insurance at any time and this, throughout the duration of the contract. There will therefore no longer be a distinction between the 1st year of contract and the following years for cancellation terms. This provision came into effect on September 1, 2022 for loan insurance contracts taken out before June 1, 2022. Only one condition: the new loan insurance must offer guarantees at least equivalent to those of your bank's offer. Principle of guarantee equivalence
How to change loan insurance for a cheaper contract?
Choose and subscribe to a new loan insurance
Before canceling your loan insurance contract, you will need to substitute another one, so your mortgage will be insured without interruption.
Send your insurance certificate to your lending institution
Once you have subscribed to the contract proposed by your new insurer, you must send the insurance certificate to your bank so that it can rule on the principle of equivalence of the level of guarantees.
Send your bank the insurance certificate and a letter of cancellation of your loan insurance
The cancellation of the previous insurance contract will take effect 10 days after the insurer receives the decision of the lending institution or, on the effective date of the contract accepted as a substitute by the lender if this is later. You then have no further steps to take. If you had subscribed to your bank's group insurance, this step is not necessary as the bank will already be notified of the cancellation.
If the results of your medical formalities reveal an increased health risk and your insurance application cannot be accepted under standard conditions, the AERAS convention applies.
To ensure that the borrower does not end up without insurance to cover their mortgage, the AERAS convention (Insuring and Borrowing with an Increased Health Risk) allows people with an increased health risk to access mortgage credit. Your mortgage insurance application can be accepted at one of these levels at any time, with or without additional premium and/or exclusions.
To be eligible, two conditions must be met: firstly, the loan amount must be less than €420,000 and, secondly, the insurance contract must expire before the insured person turns 71 years old.
The insurer that offers the best mortgage insurance is the one that offers you coverage adapted to the contingencies that may occur in your life (death, total permanent disability, partial permanent disability, etc.) as well as for all situations specific to your profile (such as job loss).
The loan insurance contracts offered by banks are group contracts: the risk is pooled among all borrowers. All generally have the same guarantees. To benefit from a cheaper contract, a loan insurance contract with adapted guarantees taken out with an insurer can offer you a better price.
Domacap has found that on average its clients save 10,000 euros on their loan insurance for a new acquisition. Discover your loan insurance rate in 1 minute! (1)
(1) Savings made by a couple of 36-year-old executives, who borrow €250,000 over 20 years, each insured at 100%, by comparing their premium to that of the average of loan insurance contracts known as "group contracts" in the market. (Extract from the KSI Partners study "Synthesis benchmark of borrowers' insurance" - 2021). The insured are non-smokers, have no pathology and do not practice any high-risk sports. They are insured for Death, Total and Irreversible Loss of Autonomy (PTIA), Total Temporary Incapacity for Work (ITT) and Permanent Disability (IPT).