Why it matters. Borrower insurance rules evolve this Wednesday

Good news for (future) homeowners: the rules governing borrower insurance will be relaxed from this Wednesday, June 1, as provided by the Lemoine law. We are explaining to you the very concrete consequences of this text, which was voted on by Parliament last February.

Simplified termination

Until now, it was not easy to terminate a borrower’s insurance. This had to be done either within 12 months of signing the loan offer or on the anniversary of the contract. Thanks to Lemoine, it will now be possible to do at any time and free of charge.

The objective? Compete to get the best deal possible. “The borrower’s insurance market, which weighs 7 billion euros, is trusted by 88% of the banking sector, which makes an average of 68% of margins on contracts. The competition will lower the rates, for the benefit of individuals! », He explains in The Parisian Patricia Lemoine, the Member of Parliament (Acting) behind the bill.

According to the text, changing insurers could allow households toeconomist “5,000 to 15,000 euros” for the entire duration of the loan. Please note that for this change to be accepted, the new contract will have guarantees equivalent to the old one.

This simplified termination will be possible from this Wednesday, June 1 for all new borrower insurance policies taken out. For older contracts, we will have to wait on September 1st future.

Medical questionnaires deleted

To obtain a price guarantee, until it is necessary to complete a medical questionnaire. Medical history, treatments, risky practices, blood draws, urine tests … This is often tedious. For some, it is even discriminatory: some real estate borrowers who have been ill or are still suffering from surcharges or even loan denials.

As a remedy for this unequal access to property, the Lemoine law removes the medical questionnaire for borrowings of less than € 200,000 per insured (ie 400,000 euros for a couple) and whose maturity occurs before the age of 60 of the borrower. From now on, only four criteria will be considered to determine the rates of a borrower’s insurance: age, occupation, smoking and geographical area.

An enhanced right to be forgotten

In the same option, that the abolition of the medical questionnaire, the Lemoine law and raised the right to walk for the victims of certain pathologies. Since this Wednesday, people have had cancer or hepatitis C after 21 years and whose Therapeutic protocol was completed at least five years ago years (compared to 10 years ago) will no longer be required to report it to their insurer.

If the latter two measures benefit sick or frail people, they indirectly risk penalizing others. Insurers, and especially those alternative to banks, will no longer be able to assess the risks as before, and may inflate their rates. “This total pooling will penalize a whole section of the population,” he warned The Parisian Astrid Cousin, spokeswoman for Magnolia.fr borrower insurance broker.

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