Credit repurchase: borrower insurance
Loan insurance allows people wishing to take out a loan to be able to protect themselves against an inability to repay, for example the loss of a job or in the worst case a death. Loan insurance protects both the borrower and the credit institution against unforeseen repayment such as the risk of disability , incapacity or even the risk of death .
Some credit insurance contracts can be supplemented by additional guarantees such as the loss of a job considered as a risk of inability to repay. Loan insurance allows the credit institution or the bank to cover the risks associated with taking out a loan for a borrower. It is optional and has no legal obligation, but is necessary or even essential for obtaining financing (credit, grouping of loans).
The different types of insurance
In the context of a financing project (credit, repurchase of credit), the borrower can opt either for a group contract or for an individual contract.
The group contract is offered by the lending institution to all persons contracting a loan (credit, credit repurchase). This so-called “standard” insurance offers the same guarantees to everyone and is not personalized to the profile of the insured.
As for the delegation of insurance, it is an individual contract that can be personalized according to the borrower’s profile. This credit insurance contract is put in place by another banking establishment or by an insurance company under certain conditions.
The essential guarantees
The DC-PTIA guarantee : this contract reimburses the financing in the event of the borrower’s death or total incapacity. It makes it possible for relatives of the person to avoid repaying the loan.
The IPT guarantee : this total permanent disability guarantee (more than 66% disability) allows the borrower not to bear his monthly payments in the event of work stoppage greater than 90 days under certain conditions.
The IPP guarantee : this partial permanent invalidity guarantee (between 33% and 66% of invalidity) allows the borrower not to bear his monthly payments in the event of a work accident or illness that does not allow him to manage an activity with full-time . It is taken out in addition to the IPT guarantee.