which changes for your borrower insurance on June 1st

Le d’assurance-emprunteur can do at any time and the medical questionnaire is deleted for certain real estate loans.

A small revolution is underway in borrower insurance. As of this Wednesday, June 1st, the conditions for changing them are simplified and the information to be given on your health is less demanding. The three main changes are to be remembered.

1. Change insurance at any time

L’assurance-emprunteur is a guarantee that you sign up for when you make a real estate loan in a bank. This allows you to guarantee your price payments, plus the ability to make, especially in the event of death or disability. Until then, the rules were pretty strict. You had the right to change insurance whenever you wanted during the first year of the real estate loan (sending a registered mail at least 15 days before the anniversary date of signing) and then once a year on the anniversary date of your contract. (sending registered mail at least 2 months before the anniversary date of signing).

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In practice, you should send a termination request to your insurer as well as an insurance replacement request to your bank and finally inform your new insurer of the bank’s response. A complicated process and, in fact, few people changed borrower insurance.

But since June 1st, it’s been a lot easier. If you enter into an insurance contract from this date, you can now change any insurance moment for the price signature, without any particular deadline. However, the process remains the same: send a termination request to your insurer, apply for an insurance replacement with your bank, and finally inform your new insurer.

Pour les prêts déjà signés and, therefore, already insured before June 1, will still have to be patient, after which the old rules are in force until August 31, 2022 inclusive. From 1 September 2022, however, the possibility of change at any time of insurance will apply to all contracts, old and new. There will be just one condition to be met: that the borrower’s insurance is equivalent to the competition.

2. The end of the health questionnaire for many loans

Another change is the end of the health questionnaire for many loans. The insurer is now prohibited from having you fill out a medical questionnaire if your loan does not exceed 200,000 euros per person (or 400,000 euros for a couple) and the term of the loan comes before your 60th birthday.

Thus, for example, if you register a real estate loan of 190,000 euros for 25 years to 32 years (the term of the loan therefore occurs after your 57th birthday), you do not need to complete a medical questionnaire. The insurer also does not have the right to pass you a health examination.

On the other hand, if you borrow 100,000 euros over 20 years to 45 years (the term of the loan therefore comes after your 65th birthday), the insurer has the right to have you fill out a medical questionnaire. It must be done in good faith, without forgetting voluntarily or making a false statement. Otherwise, “if the insurer comes to the scam when you ask for a loan repayment, he will refuse to indemnify you or get you to terminate your insurance contract,” the public service website states here.

3. A strengthened right to medical forgetfulness

For people who borrow and who have or have had what is called an “aggravated health risk” due to an illness or disability, this is the Aeras Convention (“Insuring and Borrowing with a Aggravated Health Risk “) which applies to borrower insurance. In this context, there is what is called a right to be forgotten. In other words, you no longer need to mention an old serious illness after a certain period of time.

From June 1, the right to be forgotten for cancers and hepatitis C is reduced from 10 years to 5 years. Specifically, your therapeutic protocol must have been completed for at least 5 years and you must not have had a relapse since. Then, in order to benefit from this right to be forgotten, the term of your credit must come before your 71st birthday.

What savings to expect?

The expected savings with these changes depend on many factors, between the duration of the secured loan and the level of repayable capital. But they must be substantial in theory. The borrower insurance market represents almost 7 billion euros each year in premiums for people who have a real estate loan, according to data from France Assureurs for 2020. According to UFC Que Choisir, due to the possibility of changing any time of insurance , this will save about 550 million euros a year.

Concretely, for a household, what does this mean? Still according to UFC estimates What to choose, a 35-year-old couple, who have already repaid their loan over 20 years for 5 years, can hope to save 13,000 euros over the entire credit term with a better one. insurance. For a couple of 2 people aged 55 and just coming from signing, it can even climb up to 15,000 euros for a price for 20 years. These simulations were made for a loan of 200,000 euros subscribed at a rate of 1% for 20 years, with an insured rate of 75% for each borrower.

However, these changes could also lead to additional costs for some households. Banks, which are now ultra-dominant in the borrower insurance market where they make comfortable margins, could catch up by raising mortgage rates. Then, due to the end of the medical questionnaire and the strengthening of the right to be forgotten, insurers will have to increase the contributions for all borrowers (healthy and others). The Magnolia.fr insurance-comparator comparator thus expects an increase of 8 to 25% in insurance prices on loans of less than 200,000 euros. Certified insurers even plan to stop insuring loans below € 200,000 rather than raising their rates. Finally, others will prepare the new offers and replace the medical questionnaire with other data: age, socio-professional categories, smoking, risk sports …

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