By taking out a borrower insurance to cover your mortgage, you must take out several guarantees so that the remaining capital is covered in the event of an accident. Some are mandatory, others optional. It’s up to you to carefully choose the mortgage loan insurance guarantees that are best suited to your needs!
The essential guarantees
Death and disability benefits are not mandatory under the law, but are required by lending institutions for the purchase of loan insurance.
The death guarantee allows that, in the event of death of the insured, the outstanding capital is fully covered by the borrower insurance. After settlement of the estate, the property returns to the heirs.
The Total and Irreversible Loss of Independence (PTIA) cover is for the person who, as a result of an illness or an accident, finds himself in the absolute impossibility of practicing a trade and obliges him to resort to the assistance of a third party in the daily acts of life. This guarantee also allows the remaining capital to be covered by the insurance, and that the property returns to the insured who can do what he wants, or sell it if necessary.
The payment of the outstanding capital in the event of death or disability depends on the percentage of each insured person in the context of a property purchase in couple for example.
Optional guarantees in the event of a work stoppage
Several optional guarantees can be offered to you as part of a borrower insurance, allowing, in case of work stoppage, to ensure the repayment of your mortgage.
The Temporary Work Incapacity Guarantee (ITT) applies in the case where the insured person is on medical leave and after a waiting period of 90 days. In this case, the insurer takes care of the deadlines.
The Partial Permanent Disability (IPP) guarantee, often neglected, allows partial reimbursement of the reimbursement. It is activated if the insured has a disability rate between 33 and 66%.
The Total Permanent Disability (IPT) guarantee provides for two types of compensation in the event that the insured is totally unable to work (disability rate higher than 66%). In the first case, the insurer assumes the monthly payment of the installments of the mortgage, but does not pay the debt immediately. In the second case, the insurance immediately covers the outstanding balance.
The job loss guarantee covers you in the event of a possible dismissal: the conditions of this guarantee vary from one mortgage insurance to another. The guarantee does not cover, for example, cases such as resignation. Ask your borrower insurance to find out the details of the coverage provided.
The Medical Profession Option allows an insured exercising the profession of physician, surgeon or dentist to benefit from a special 100% permanent professional disability scale.