Why and how to change loan insurance?

You may not know it, but you can change your loan insurance at any time with your loan. Although it is sometimes misunderstood by borrowers, this practice has a number of advantages. Feeling a little lost? Discover all the answers and solutions for achieving savings.

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You’ve heard about the possibility of changing loan insurance, but you don’t dare take the steps or save how you take. Here’s why and how to change your loan insurance.

Why change my loan insurance?

While the economic situation in recent years has allowed the majority of borrowers to enjoy relatively low borrowing rates, this has not been done without consideration: Banquet largely offset this decline by an increase in the cost of loan insurance.

On the other hand, insurance companies have lowered their rates for the majority in order to be able to face increased competition in the sector.

To simplify their paperwork, many borrowers usually decide to take out their loan insurance with the bank that granted them the loan. However, going through another intermediary for its price assurance, can allow you to make significant savings. To get to the heart of the matter, it may be worth comparing the terms and rates of your current insurance with quotes from other specialty providers.

Thus, for a lower rate than what you are currently paying, you can benefit the most from the benefits plus advantages (more information here: Guideducredit.com). Who says better?

How do I change my loan insurance?

If prior notice was required around the anniversary date of the loan, you can now modify your borrower’s insurance for the duration of the loan. your loan. This news is quite reassuring when one knows that some borrowers are getting into debt for over 20 years. Indeed, with the next entry into force of the Lemoine Act, you can be sure that it is free to make sure to write another:

  • from 1er June 2022, for new loan insurance contracts;
  • from 1er September 2022, for loans being repaid.

Nevertheless, this change in loan insurance can only be made on one condition: the new borrower insurance policy must comply with the guarantees required by your old insurer at the time of taking out the old contract.

The change in my loan insurance, in practice

  • Step 1: I choose and take out new loan insurance with equivalent collateral.
  • Step 2: I submit my new insurance and my request for termination of my bank insurance to my bank.
  • Step 3: I receive an addendum to my loan with my new overall effective rate (insurance + contributions).
  • Step 4: I return the dated and signed addendum to my bank.

Changing loan insurance during borrowing is not that difficult in the end. The legislation has evolved for simplification, plus the administrative steps of the borrowers. What are you waiting for to save money?

Article created in partnership with the Guide du Crédit teams

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