When negotiating your mortgage insurance, you must choose an insurance portion, that is, your level of coverage. It is therefore an important step on which you absolutely must not go. The Credither Guide goes back over what you need to know.
The insurance quota, the principle
In concrete terms, the share of borrower insurance designates the share of capital to be guaranteed. Simply put, if a borrower for example has a 75% quota for a mortgage loan of 180 000 €, the amount covered will amount to 135 000 €.
In other words, 100% coverage implies that the borrower will be protected on the entire mortgage.
How is the distribution done?
For example, suppose a couple opts for a 60% / 40% split, and the first spouse dies. The insurer will then assume the repayment of the outstanding capital of up to 60%. The second borrower will have to repay the remaining 40%.
Can we have a distribution greater than 100%?
When you are in a relationship, the percentage can exceed 100%. It is possible, for example, that borrowers benefit from 100% coverage each. This is called “200% coverage “. Needless to say, the cost of credit insurance will be greater.
How to decide the distribution?
There is no ideal distribution. Your choice must be determined according to your situation. For example, ask yourself if you or your spouse can assume the monthly mortgage payments in case of death of one or the other. In the same vein, in case of disability, will your compensation be sufficient to cover your monthly mortgage loan? Will you evolve professionally? Will your income increase? Only you have answers to these questions. But it is advisable to opt for a 200% split if you borrow at 2.
For maximum coverage at the best cost, we recommend using our credit insurance comparator.