The insurance documents you receive
A standardized information sheet is provided with each mortgage application. A personalized form is given by the lender as soon as a personalized study of your loan application has been carried out. The insurer informs you of its decision. It will send you the contract and notice that will be attached to it describing the risks covered. Read the insurance contract carefully.
A standardized information sheet
The standardized information sheet is the first document you receive when you apply for insurance for a mortgage. It presents the proposed guarantees as well as a personalized example of the cost.
It contains :
- the minimum requirements desired by the lender depending on the type of loan requested (in other words, the main characteristics of the insurance to guarantee the repayment of a real estate loan depending on the purpose of the financing (first-time buyers, renters, etc.),
- the definition and description of the types of guarantees that can be taken out, the minimum characteristics required, the guarantees offered, the share of the borrowed capital to be covered as well as a personalized estimate of the cost of the insurance envisaged.
It allows you to better target your request to different insurance companies and you can more easily compare the offers. You can also apply.
The personalized form
This document is given by the bank as soon as a personalized study of your loan application has been made and as early as possible.
This form indicates for each required guarantee, the criteria that it must present, and their valuation (minimum percentage...). The elements included in this sheet will form the basis for comparing the insurance contracts that you can offer to the bank, in particular, to check the equivalence of the guarantees if you offer delegated insurance.
The notice attached to the contract
You must receive from the insurer all the necessary information on the guarantees and the amount of the premiums that you will have to pay at each due date.
In the case of group insurance, the insurance contract is not presented to you directly by the insurer, but by the bank that grants you the credit. It is therefore up to the bank to give you all this information.
The bank must, for example, attach to the loan contract a note describing the risks covered and the general conditions of the contract. The insurance contributions, when it is compulsory, must be included in the calculation of the Annual Percentage Rate (APR) of the loan.
The insurance contract
Read your contract carefully.
Check the scope of the guarantees offered and the repayment terms, such as the terms for taking over loan payments in the event of work stoppage or if certain activities are not covered.
Carefully check all exclusions, whether general or personal, resulting from the examination of your file: Based on your answers to the health questionnaire or the medical questionnaire, or on the additional information you have been asked to provide, the insurer may consider that it is not possible to cover the risk or may propose a cover with restrictions and/or a specific rate. If certain risks are not covered by the insurer's contract, the final content of the guarantee obtained may no longer allow the bank to grant credit. In this case, you will be notified in writing of the credit refusal based solely on the insurance issue.
Consult the insurance tariff. It is expressed :
- in annual effective rate of insurance (AEIR)
- in the total amount in euros due over the entire term of the loan,
- in euros and per period according to the payment frequency. It is specified whether or not this amount is added to the repayment term.
The amount of the insurance premium can be applied either to the initial capital borrowed (the premium remains the same throughout the repayment of the loan) or to the outstanding capital (the premium tends to decrease as the loan is repaid).