Home loan insurance: what arrangements for the sick?
The insurance of a mortgage becomes more fluid for the users who are now more free in their choice. However, some people such as the sick, the elderly or even smokers are subject to specific subscription criteria, explanations!
Home loan insurance in 2018
Taking out mortgage credit insurance has become an increasingly simplified process over the years. To be exact, signing a contract has always been a process facilitated by insurers, it is rather to get rid of your insurance to turn to a contract which is not only possible, but increasingly accessible. Indeed, since the beginning of 2018, it is possible for each insured to request the termination of their mortgage credit insurance, but this process must meet certain conditions. First of all, canceling the insurance on your home loan obviously requires finding another to replace it, it will have to offer guarantees equivalent to the old one.
Furthermore, the termination process must be done at the time of the anniversary of the contract. The purpose of this approach is to allow the insured to benefit from more attractive prices for their mortgage credit insurance. The change can thus be made each year. However, if individuals with a classic profile benefit from more flexibility in the choice of their home loan insurance, certain cases require meeting more specific criteria.
What you should know for sick people
People with serious illnesses are not always treated fairly by insurance. The risk of death being more or less high, they are obliged to declare health information concerning them to their insurer. The consequence is that some insurers will clearly refuse to offer mortgage credit insurance, or in the best of cases apply a premium to the cost of basic coverage. Insurance companies seek to protect themselves in the event of default, but this also means that sick people who cannot benefit from borrower insurance will not be able to take out mortgage loans.
Fortunately, things have also changed for sick people this year! According to medical advances, a new grid is published each year detailing the new conditions of adhesion to an insurance for a mortgage (it is the organization Aeras which takes care of it). From now on, people suffering from cystic fibrosis will be able to access it under certain conditions. People with certain cancers, HIV and hepatitis C also benefit from better conditions of access to mortgage credit insurance. Simply put, the more science progresses, the more sick people will have access to better quality loan insurance.
What you need to know for the elderly
When one reaches an advanced age, but one wishes to materialize a real estate project by the purchase of a good, to find a real estate credit insurance is not easy either. Seniors will have to fulfill certain conditions in order to be able to access borrower insurance. Generally, the maximum age in order to be able to subscribe to it is 65 years. The consequence is that the subscriber’s state of health will be closely monitored.
After a certain age, the disability and death guarantee will stop (often around 80 years) and the amount of contributions will be more important than for a conventional mortgage loan insurance, they may even increase over the years. However, despite these obstacles, taking out mortgage credit insurance for a senior will be all the more important, as it will protect the heirs from debts in the event of death.
What you should know for smokers
The Ministry of Health has recorded a historic drop in the number of smokers between 2016 and 2017. However, they are still very numerous in France and on the side of their mortgage credit insurance, the cost may vary from simple to double compared to a healthy subscriber. To be considered non-smoking, you must never have smoked or have stopped for more than two years. What’s more, it’s good to know that vapers are considered smokers. Thus, if you have stopped smoking for more than two years, it will be imperative to report it to your insurer in order to benefit from a more attractive rate.
In short, whatever their state of health, playing with transparency is much more indicated than taking the risk of making a false declaration to obtain a better price, or simply accessing mortgage loan insurance. The good news is that sick people like everyone else will be able to compete every year to get a better deal and a better rate on insurance to cover their credit.