identify the risks covered by the loan insurance

If the borrower faces an unforeseen event, the contract insurer takes over to pay the monthly installments of the remaining capital, thus covering both the lending bank and the client against the main risks incurred during the term of the credit.

Borrower insurance covers the risks associated with repayment difficulties in the event of incapacity, disability or death of the borrower. More rarely, it can also cover job loss. Most of the time, the bank adviser will not take the time to explain in detail all the guarantees of your insurance contract. It is therefore better to check the levels of protection offered before signing and to play the competition.

Several types of risks covered

To understand the intricacies of the borrower insurance contract and the details of the coverage, the loan applicant is always faced with several acronyms:

DC: death benefit

Except for exclusions provided for in the contract, all types of death are likely to trigger the implementation of this guarantee. Even the suicide of the insured is covered upon subscription (with reimbursement capped at €120,000 in this case). In the event of a loan with several co-borrowers, the guarantee will play on the remaining capital…

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